Evolving expectations result in increasing demand for data and transparency from asset owners to their external managers. By providing functionality for aggregating asset managers’ engagement activities, Esgaia’s software helps strengthen transparency and accountability across the value chain. It supports asset owners in their stewardship reporting and engagement with asset managers.
Transparency and reporting requirements
In most jurisdictions, investors are expected to report on their engagement and voting activities to their stakeholders. Investors should publicly disclose their stewardship policies and activities, and report to beneficiaries or clients on how they have been implemented so as to be fully accountable for the effective delivery of their duties.
Using a balance of both qualitative and quantitative information, reporting should provide insight into how investors practice stewardship and allow stakeholders to understand the scope and scale of activities. Even if, at least in Europe, it would be enough for the appointed asset manager to publish a stewardship report annually, best practice today demands a lot more to really function as an important accountability mechanism to stakeholders and civil society.
Esgaia’s solution
Our software strengthens oversight, reporting and communication between trustees and their appointed asset managers.
Offering a specific license to asset owners, the system can currently be used to analyze and report on engagement activity undertaken on behalf of the asset owner:
Periodically upload individual asset managers’ engagement activities using standard templates
Analyze and compare portfolio/mandate coverage, activity levels and quality, including outcomes
Aggregate statistics for stakeholder reporting
Enable manager self-reporting to monitor engagement activities over time
This solution helps asset owners and asset managers ensure their engagement priorities and objectives are aligned. Over time, optimizing this process will reduce duplication efforts, and enhance impact through greater accountability, coordination and collaboration.
Please contact us if you want to know more.
Author: Anton Ljung, CEO, Esgaia