INDUSTRY AND
ISSUE ANALYSIS
Identifying the next big trends in corporate governance to inform an asset owner’s ESG strategy
01
The objective:
Identify the next big trends in corporate governance to inform an asset owner’s ESG strategy
A Canadian real estate investment company wanted to benchmark corporate governance practices in their sector in response to growing interest from responsible investors. Among private companies, like this client, governance and sustainability information is rarely publicly available.
02
Our approach:
Combine stakeholder engagement with regulatory and competitor analysis
In collaboration with a governance expert, we benchmarked corporate governance policies, mandates and disclosure patterns to identify a market baseline. We interviewed experts and practitioners to uncover off-the-record governance issues on the horizon. We conducted a regulatory sweep to identify the ESG trends on regulators’ watch list. As well as examining corporate governance red flags drawing the attention of AI-based investor platforms.
03
The outcome:
Demystifying an area of growing concern among sustainable investors
Our analysis combining public and private sector corporate governance and ESG insights brought clarity to the asset manager’s governance priorities. By shedding light on which governance issues are gaining traction with investors and other stakeholders, our client can strengthen their governance performance to position itself as a market leader and improve their ESG communications.
We have taken 20-25 years to get to a reasonable set of ideas about corporate governance. We are at the very beginning of thinking about investor governance. It’s the next stage in capital markets and capitalism.
Anne Simpson,
Global Head of Sustainability, Franklin Templeton, speaking at the Oxford Sustainable Finance Summit, 2022.