Scientific Beta

ETF Stream: "In such circumstances impact in the boardroom is similarly hard to assess although a recent report from analysts at Scientific Beta did make the point there are reasons to suggest that both engagement and divestment do have an effect. In the case of divestment, it “contributes to raising the cost of capital for divested companies” and that this gives their management “an incentive to improve their ESG performance”. Meanwhile, on the engagement side of the equation if it is “properly managed and executed” it can contribute to a company’s ESG performance."

ETF Stream 15/06/2020

 

"(...) In such circumstances impact in the boardroom is similarly hard to assess although a recent report from analysts at Scientific Beta did make the point there are reasons to suggest that both engagement and divestment do have an effect. In the case of divestment, it “contributes to raising the cost of capital for divested companies” and that this gives their management “an incentive to improve their ESG performance”. Meanwhile, on the engagement side of the equation if it is “properly managed and executed” it can contribute to a company’s ESG performance. (...)" 

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