Regulatory Alerts2025-06-30
The Role of Engagement in Sustainable Investing
The Dutch Authority for the Financial Markets (AFM) issued this paper to clarify the role and effectiveness of ESG engagement within sustainable investment strategies. It highlights the divergence between scientific empirical evidence and practical theory-of-change perspectives, noting that while causal impact is hard to prove, engagement remains a valuable tool when executed with high quality and specific success factors. The document identifies ten key success factors, such as clear ownership mandates and credible escalation threats, and outlines four insights for better reporting to substantiate the value case for engagement amidst growing ESG skepticism.
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