Scientific Beta

Benefits and Pensions Monitor: "Divestment and engagement are entirely compatible, says Scientific Beta. In ‘ESG Engagement and Divestment: Mutually Exclusive or Mutually Reinforcing?’, it argues that both are actions that promote change and both approaches can be effective. The rise of collaborative engagement campaigns, in which current and potential shareholders combine their forces, are testimony to the fact that divestment does not put an end to an investor’s possibility to engage with a company."

Benefits and Pensions Monitor 08/06/2020

"(...) Divestment and engagement are entirely compatible, says Scientific Beta. In ‘ESG Engagement and Divestment: Mutually Exclusive or Mutually Reinforcing?’, it argues that both are actions that promote change and both approaches can be effective. The rise of collaborative engagement campaigns, in which current and potential shareholders combine their forces, are testimony to the fact that divestment does not put an end to an investor’s possibility to engage with a company. Those who deem ESG (environment, social, and governance) divesting strategies incompatible with engagement sometimes see integrated ESG mixing strategies as a good match with ESG engagement. Unfortunately, this type of approach, which means that the weight of a stock is a result of both its financial and ESG characteristics, can lead to investment policies that are totally inconsistent with the stated objectives of the strategy. (...)"