A group of UK investment consultants has launched a new tool to help asset owners test whether their investment managers\u2019 stewardship is aligned with their own expectations \u2013 and pursue fixes if not.<\/p>\n
Launched in 2020<\/a>, the Investment Consultants Sustainability Working Group (ICSWG)\u00a0brings together leading UK investment consulting firms with the aim of improving sustainable investment practices across the investment industry.<\/p>\n Mette Charles, sustainability research lead at Aon, said the new investment stewardship alignment tool was designed to bring \u201cgreater clarity and structure\u201d to conversations between asset owners and managers by focusing on stewardship \u201cin an applied way\u201d.<\/p>\n The tool\u2019s launch comes as asset owners are under increasing pressure to demonstrate that stewardship is meaningful, well governed and consistent with fiduciary duties, the consultants group noted.<\/p>\n Asset managers. meanwhile, are looking for asset owners to set clearer, and potentially more constructive, realistic,\u00a0stewardship expectations<\/a>.<\/p>\n The ICSWG\u2019s tool aims to provide a structured framework, using a flow chart to guide asset owners through an assessment of managers\u2019 proxy voting decisions and engagement activity, and how closely these line up with asset owners\u2019\u00a0own responsible investment beliefs and stewardship expectations.<\/p>\n The tool also\u00a0offers guidance on addressing non-alignment and exploring escalation options, essentially involving further communication and monitoring with timelines, or, if necessary, selecting a different manager.\u00a0<\/p>\n Stephen Miles, head of sustainable investing at Willis Towers Watson Investments, said the tool could also help asset owners compare managers\u2019 stewardship approaches with other frameworks, including the Principles for Responsible Investment (PRI) pathways<\/a>, and could complement other industry tools to support stewardship discussions.<\/p>\n