New report about active ownership for corporate sustainability
Misum researcher Emma Sjöström has published a new report about active ownership related to environmental and social impacts of the firms that are invested in. The study reviews research of the last ten years about possible strategies for shareholders and their potentials for success.
"Active ownership can take many forms. Shareholders might engage in dialogue with corporate management in order to instigate improvements in corporate conduct; shareholders can file resolutions that are voted on at corporations’ annual general meetings or may choose to divest themselves of their shares in an entire sector; some may even file a lawsuit in an attempt to persuade a company to correct wrongdoing", writes Sjöström, and underlines the importance of extracting success factors out of these various approaches.
Key findings of the report include that legitimacy is more important than magnitude of ownership in directing firms towards sustainability, and that resolutions are more effective if they embrace transparent procedures.
Full report Active Ownership.pdf