Companies will face rising pressure to improve their environmental, social and governance (ESG) behaviours as investors deploy new tools to influence them, NN Investment Partners (NN IP) says in its latest Responsible Investing Report.
Until recently, investors have had limited scope to use voting to influence specific ESG policies. This is set to change as companies will enable investors more to vote on their sustainability policies at annual general meetings (AGMs).
Among other topics, companies will begin including a “say on climate” and “say on diversity” on their AGM agendas, alongside the existing “say on pay”. Investors will also have more ways to influence policies related to non-financial goals through engagement, the report says.