Following last year’s collaborative engagement effort on companies listed in the UK with a below standard sustainability record according to FTSE4Good Environmental Social and Governance, (or ESG) scores, we continued the discussion with the same companies to help improve their scores. This engagement was carried out together with two other UK institutional investors in order to assess the effectiveness of company engagements, which are often difficult to quantify when measuring success.

Companies were randomly picked based on low ESG scores and separated into two groups ; a ‘test’ group with whom we engaged heavily and a ‘control’ group with whom we didn’t engage. After one year, the results were assessed academically and showed that our engagement led to a stronger improvement among companies, which responded to engagement compared to the ‘control’ group.


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