The Role of Investors in Supporting Better Corporate ESG Performance

KKS Advisors, Ceres and EDF / April 2019

Over the past two decades, investors have played an active role in influencing corporations to address material ESG risks. However, many investors still have questions about what outcomes can be expected from various investor influence strategies — such as dialogues with company management, shareholder proposals and proxy voting, divestment and public policy engagement. Do these investor interactions have a tangible impact on corporate financial and sustainability performance?

To answer these questions, Ceres, EDF and KKS Advisors, undertook a comprehensive review of the literature and a series of in-depth interviews with investors. This report identifies best practice in investor-corporate engagement strategies and proposes a framework for understanding the drivers of successful investor engagement efforts.