Stewardship Code and ESG
Stewardship Code and ESG Definition: A set of principles or guidelines for institutional investors and asset managers to actively monitor and engage with the companies they invest in to enhance long-term shareholder value. Purpose: Promote responsible investment . Ensure investors consider long-term sustainability, governance, and ethical practices . Strengthen accountability between investors and companies. Key Objectives: Encourage investors to engage with companies on strategy, risk, performance, and ESG (Environmental, Social, Governance) issues. Promote transparency in investment practices. Protect and create long-term value for beneficiaries . Who it applies to: Institutional investors like mutual funds, insurance companies, pension funds . Asset managers and investment advisors. Key Principles (common across countries like UK, India, Japan): Public disclosure: Investors should disclose their policies and actions. Active monitoring: Regularly review investee companie...
