As global assets integrating Environmental, Social and Governance (ESG) considerations continue to swell, institutional investors are increasingly using collaborations as a means of engaging with their portfolio companies.
By combining asset ownership, these collaborations can leverage collective resources and knowledge to influence companies on a wide range of ESG topics and improve transparency.
Leaders Arena monitors the growth in membership and assets supporting ESG related investor collaborations.
In our 2022 study on this topic, we uncover growing support for these initiatives, new collaborations and growing ESG trends. The study focuses on 29 investor collaborations with a minimum combined size of $1 trillion in Assets under Management (AuM) with a global impact.
Key takeaways from this study:
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Investor collaborations continue to grow exponentially with an increase in assets following ESG collaborations up 44% between 2020 and 2022.
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Environmental collaborations still dominate, representing 17 of the 29 collaborations assessed in this year’s study.
Many companies find it challenging to keep up with the diverse and evolving approaches to ESG integration within their investor base. By following these initiatives, companies will be able to prioritize their time and resources more effectively, addressing issues that are of concern to some of their key investors.