Library | ESG issues
Shareholders & Voting
Shareholders have the right to vote on corporate decisions, including board appointments, mergers, disclosures, and ESG policies. Active ownership through voting and engagement is a key mechanism for aligning corporate actions with investor interests and long-term value creation.
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The financial materiality of sustainability issues
This report synthesises research demonstrating the financial materiality of ESG factors for investment outcomes. It highlights that managing sustainability, governance, environmental, and social issues supports long-term value. Evidence shows that ESG integration, board diversity, and active stewardship enhance corporate performance while mitigating systemic risks to the Australian economy.
Speaking up for super members: Australians reflect on active ownership
This report examines Australian superannuation fund members' support for active ownership. Research indicates that while baseline awareness is low, members strongly prefer funds to engage with companies on ESG risks rather than divesting. Evidence shows that managing these material risks enhances long-term financial performance and aligns with member expectations.
Investments by European truck manufacturers into zero-emission technologies
This report analyses investment behaviours of five major European truck manufacturers between 2019 and 2025. It reveals that companies prioritised shareholder returns, paying out 66% of net profits, over zero-emission research. Significant transparency gaps exist, with public announcements representing only 42% of actual reported research and development expenditure.
An investor guide to addressing electric power risk from data center growth
This report examines risks to electricity companies from rapid data centre growth, including community opposition and grid reliability. It evaluates solutions like clean energy, flexible contracting, and demand-side management. The guide provides framework questions for shareholder engagement to ensure utilities manage expansion in a financially disciplined and sustainable manner.
Achieving effective AI governance: From theory to practice. An investor perspective on managing AI risks
This report provides a framework for investors to manage AI-related risks in portfolio companies. It outlines material risks, categorises company significance, and introduces the AI Governance Framework. The document encourages collective action through engagement, voting, and policy advocacy to promote responsible AI development across various industrial sectors.
Who Controls the Defence Industry?
A leximetric dataset and index assessing state control versus ownership in 107 global defence firms, featuring the novel State Influence Index.
Climate governance under pressure: The Anti-ESG movement’s impact on Canadian institutional investors
This report analyses the impact of the US anti-ESG movement on Canadian institutional investors. It examines governance challenges in integrated markets, shifts in proxy voting, and regulatory changes. Despite political spillover, the analysis highlights the resilience of Canadian legal frameworks and the ongoing commitment to climate-risk oversight.
The governance of dual-class firms
This research examines the governance of dual-class firms, documenting a significant rise in their prevalence among US initial public offerings between 2000 and 2025. It identifies that these structures are increasingly concentrated in founder-led, venture-backed technology companies, while empirical evidence suggests they do not necessarily lead to CEO entrenchment.
The global rise of index-based ownership of firms
This research examines the global expansion of index-based ownership from 2004 to 2023. Using a benchmark-free classification model, the study finds global index ownership reached 16.9% by 2023. It highlights significant regional variations, noting that US ownership is highest in mid-caps, whereas European and Asian indexing remains concentrated in large-cap firms.
Governing global externalities: Investor voice amid fragmented policy
This research examines how corporate stewardship and policy advocacy address global externalities. Stewardship is more effective when foreign regulation is absent and leakage is high. However, if foreign regulation is feasible, stewardship can crowd out policy, while advocacy can encourage international regulatory coordination through strategic complementarity.
Buybacks playbook
This playbook provides a framework for companies, investors, and policymakers to evaluate share buybacks based on long-term merits. It recommends objective capital allocation, decoupling executive pay from buyback-influenced metrics, and enhancing regulatory disclosures and trading restrictions to ensure repurchases support sustainable corporate strategy rather than short-term gains.
Anti-woke corporate governance
This research explores the emergence of partisan corporate governance, focusing on Texas as a conservative competitor to Delaware. It examines legislative changes to limit shareholder litigation and influence, the regulation of proxy advisors, and the resulting legal and political risks for corporations navigating an increasingly politicised regulatory environment.
Stakeholder engagement and ESG in China
This research analyses China’s state-led stakeholder empowerment model for ESG integration. It identifies economic, policy, compliance, and sustainability drivers while examining channels such as shareholder activism and representative litigation. The article proposes a tiered institutionalisation framework to resolve procedural indeterminacy and strengthen collective action infrastructure within concentrated ownership structures.
Three ways to move a company: A typology of best-practice investor engagement
This research examines three distinct models of investor engagement through case studies of BP, Honeywell and Bâloise. It highlights how financial-materiality framing and structural shifts in stewardship, including the fragmentation of 'Big Three' voters and SEC regulatory changes, are reshaping corporate governance and activist strategies for 2026 and 2027.
Legal liability vs. proportional representation: What works in improving poor investor protection?
This research evaluates Korean governance reforms, comparing director legal liability with proportional representation. Findings indicate that markets react positively to increased director liability, especially for undervalued firms. Conversely, mandated proportional representation triggers negative reactions, as investors fear boardroom conflicts may hinder strategic decision-making and reduce board cohesion.
Limited impacts of shareholder pressure on climate strategy of fossil firms
This research examines shareholder pressure on US fossil fuel firms’ climate strategies. Using NLP to analyse 10-K filings and SEC regulatory changes, it finds limited impact on substantive reforms. Firms often employ symbolic disclosures or procedural tactics to resist decarbonisation, suggesting that mandatory policy is required for transition.