Increasing focus on environmental, social and governance (ESG) issues is forcing companies and investors to ensure that their stance on these topics is both credible and understood. Increased regulation is pushing investors to “actively manage” their holdings in companies and again be seen to be doing so, requiring companies to engage with their stakeholders and directors to justify publicly the decisions they have taken by reference to their duties under the Companies Act 2006. As a result, all the ingredients seem present to encourage and promote a “healthy public debate” and for companies to be placed under greater pressure to explain their purpose and culture.
The focus on the ESG agenda provides shareholders with another metric on which to judge boards and voice their concerns, including through voting against resolutions at general meetings.
Please read the full article below which looks at the new regulatory landscape and its implications.
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