Shareholder Engagement and Transition Investing

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biodiversity, shareholder engagemnt
In recent weeks, our Italian member Fondazione Finanza Etica and the Secretariat of Shareholders for Change collaborated on the drafting of the ‘Principles for Transition Investing’, promoted by the organisation Better Finance (The European Federation of Investors and Financial Services Users). The ‘Principles’ are part of a broader report, ‘Shareholder Engagement and Transition of Capital Flows’, published on 28 February and available here.
 
They
  • are a guide for effective shareholder engagement and voting practices for transition-linked equity investments in listed companies.
  • emphasise transparency, active engagement, and the importance of evidence-based escalation strategies.
  • include a ‘commitment to detailed application and disclosure of escalation policy, including outcomes on escalation activities’, for example ‘developing and disclosing an escalation plan, including toolkit with each corresponding step’. 
The Principles are a valuable tool for aligning our engagement efforts with the goal of achieving a just transition and a more sustainable economy. SfC firmly supports this approach, which underlies the network’s engagement process.