Asset Owners Need to Optimise and Bolster Their Approach to Investee Engagement

Net zero-related engagement is important for moving investees in the direction of long-term targets, but carries a risk if policies don’t keep upThe RFI Foundation’s (RFI) research indicates that for Environmental, Social, and Governance (ESG) as a whole there may be a ‘margin of safety’ when screening engagement targets through Shariah screens, and more research is needed to evaluate its presence, especially in relation to transition-related investmentsIf a similar ‘margin of safety’ from Shariah screens exists when considering emissions-related issues, this could enable investors to adopt more ambitious climate-focused company, sector, policy and asset manager engagement

The field of responsible investment has dramatically shifted the actio...