Active ownership: A strategy to achieve net-zero goals has been saved
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Active ownership: A strategy to achieve net-zero goals
Influence the transition to a lower-carbon future
Learn how you can turn your investment influence into a powerful force for sustainability. Dive in to the world of active ownership, where savvy investors can drive the transition to a lower-carbon economy. By exerting influence toward companies in fulfilling specific environmental, social, and governance (ESG) goals, you can leverage various strategies to achieve portfolio-level net-zero emissions.
What is active ownership?
Active ownership is the art of pulling levers of influence that can build to escalate and effect real-world change, allowing your voice to be heard in boardrooms and beyond. Imagine engagement not as small talk at a networking event, but as a strategic conversation that can set the stage for impactful outcomes. Whether it’s urging companies to disclose their greenhouse gas emissions or pushing for ambitious decarbonization targets, your proactive efforts can ignite transparency, accountability, and trust.
What every leader should know about active ownership
You can get proactive and transform your investment strategy into a force for global decarbonization. Active ownership is your backstage pass to driving real-world change. Step up and work to make your portfolio an investment in improving the planet.
The five potential benefits of active ownership
1. The power of the collective
When like-minded investors join forces, it can be like forming a financial super team. Collaborative engagement can magnify your influence, tackling industry wide issues with a united front. Climate Action 100+, a popular climate-focused initiative for collaborative engagement, is one way to allow investors to tackle emissions “hotspots” in their portfolios. They can pool their collective assets under management (AUM) toward the achievement of 10 specific requests for certain high-emitting companies. It shows that together, we’re often mightier than the sum of our portfolios.
2. Proxy voting strategies
Proxy voting isn’t always just for picking board members anymore. You can use your voting power to champion sustainability at annual general meetings. Support ESG-related proposals, consider voting against directors who delay on climate action, and push for executive compensation tied to tangible sustainability goals. It’s like having a megaphone at the shareholders’ table, where your voice can be amplified.
3. The power of public communication
Public communication is another ace up your sleeve. By openly sharing your net-zero goals and progress, you can send ripples through the investment community. Consider joining climate-focused groups, speak your commitments from the digital rooftops, and encourage companies to match your transparency and ambition.
4. Portfolio construction
Worried about high emission-emitting stocks dragging down your goals for a greener future? Portfolio construction can help. Whether you’re excluding fossil fuel investments or rebalancing toward low-carbon options, these strategic moves can turn your portfolio into a beacon of sustainability without sacrificing returns. And if push comes to shove, divestment remains a play—showing that you truly mean business.
5. Propel your investments toward sustainability
So, are you ready to join the ranks of active owners making a difference? Dig into our full article to discover ways your investment strategy can become a force for good. With strategic tactics and collective muscle, you can not only bolster your portfolio but also help pave the way for a more sustainable world. It’s time to invest in change—read on for tips to start leading the charge.
For further discussion, please contact us. Deloitte has practitioners with experience in ESG and governance, risks, and controls across industries to advise.
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Cynthia Cummis | Sarah Digirolamo | Mel Dubin |
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Christina Gunnell | Suzanne Smetana |
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