Æquo leads shareholder engagement with listed companies on behalf of its customers to improve their environmental, social and governance (ESG) practices. This shareholder engagement approach is based on one principle: that companies aligning their practices with the principles of good governance, sustainable development and respect for human rights get better long-term returns.
In addition to contributing to a sustainable economy and common welfare, a sound management of ESG issues is an indicator of the quality of management of a company and its current and future performance.
The consideration of ESG factors by companies mitigates risk and protects their reputation, while improving resilience and pre-empting regulatory developments.
Shareholder engagement on ESG practices is part of the fiduciary duty of institutional investors, safeguarding the interests of their beneficiaries. It is essential for investors to become active stewards of their investments – a principle which also stands as the second principle of the PRI (Principles for Responsible Investment). Æquo is a signatory of the PRI and is active and highly involved in this initiative, which features nearly 2,000 institutional investors and service providers.