In order to ensure the stability of our national and indeed global economies, the financial market crash of 2008/2009 points to the critical need for greater oversight of today’s financial markets.
Increasingly large institutional investors are being called upon to provide this type of active engagement and ownership in our capital markets. Many institutional investors are using their influence to engage and in some cases aggressively challenge the management of corporations in order to improve the environmental, social and governance (ESG) standards of the firms in which they invest. Such activity forms the core of institutional investors’ responsible investing strategies and as a result investors hope to ensure long-term shareholder value for future beneficiaries.
Raised corporate ESG standards have positive impacts for local communities and indeed communities around the world. In light of recent financial and environmental crises, such long-term investment policies are essential to ensuring the health and growth of our economies going forward.