As part-owners, investors are important stakeholders in a company. They drive the stock price upon which management incentives are often based and determine the price and ease of access to capital.
Perhaps unsurprisingly, given the proliferation of policy interventions and consumer interest in this space, investors are expressing a greater interest in sustainable investing. From 2012 to 2018, reported assets under management in sustainable investment strategies have risen from USD 11 trillion to USD 31 trillion, as stated by the Global Sustainable Investment Alliance. Shareholder activism, in particular, can play an important role in pushing companies to adopt more sustainable policies. According to Activist Insight, the number of shareholder campaigns related to environmental, social, and governance themes has increased twenty-fold since 2007. Investing in this area is an opportunity for our time – and the world to come.