Collaboration is key for positive social impact
By advocating for collaboration, investors can provide the positive incentive where individual firms cannot, according to Calvert Research and Management’s recent paper, Investment Stewardship for Positive Societal Impact.
The paper highlighted that companies are increasingly addressing environmental, social and governance factors, but there are limits to how much individual companies can accomplish on their own.
The paper proposed to combat this, large investors like index funds, active managers and pension funds should act as “stewards of the commons”, and ensure that companies make coordinated efforts to address the world’s crucial environmental, social and governance issues.
As studies have shown that collaborative moves by companies have enhanced financial performance through cost savings, increased brand value, innovation and employee productivity, the paper suggests that the “win-win” situation has minimal risk for large investors.
AUTHOR
Anastasia Santoreneos
Recommended for you
Lonsec Research and Ratings has appointed a head of sales, completing the leadership team to boost its reach with financial advisers.
Allianz Retire+ has announced major leadership changes with the appointment of a new CEO and distribution heads to help expand its presence across the wealth channel.
The RBA assistant governor (business services) is set to speak at the Women in Finance Summit 2025, taking place this November.
Momentum Media’s wealth publishing network is pleased to announce the launch of the annual Australian Wealth Management Summit 2025.
