The 4 guidelines top global institutional investors will follow in 2023

Climate changeThe 4 guidelines top global institutional investors will follow in '23

F. Rodríguez |Top global institutional investors will intensify their pressure on issuers on different points related to aspects of ESG in the coming year, according to the bi-annual survey Institutional Investor Survey carried out by Georgeson. It includes individual interviews with specialists of this group of firms, with assets under managment equivalent to over 40 billion euros. The four big trends discovered by the survey are as follows:

1. The investors want to see more ambitious and more rigorous ESG metrics. Of those taking part in the survey, 87% flag that the “rigour” of the indicator applied to executive remuneration is a key concern when evaluating the quality of the ESG metrics. Some 63% believe they should form part of the long-term incentives. Whatsmore, 30% assured that they will vote against those companies which do not incorporate indicators of this kind in remuneration, including applying “the same level of pressure as in the case of gender diversity”.

2. The investors are intensifying their focus on “climate ambition and disclosure”. Of the top global institutional investors, 93% advanced that they will continue “developing more detailed guidelines on climate transition policies”.

3. Managing human capital will receive closer attention in the 2023 voting season. This is what 70% of those consulted by Georgeson assured. Over half of them believe that the most suitable social metrics to be included in the short-term incentives are those related to Health and Security, Employee Engagement and Customer Satisfaction.

4. Shareholders’ rights will receive more closer scrutiny. Of the top global institutional investors, 60% believe that 20% of a “no” vote for a proposal put to the vote at an Annual General Meeting is the maximum limit from which the company has to provide a concrete explanation about the item or initiative in question. In the event this explanation is not forthcoming, the investors flag they will probably vote against this same proposal at the following AGM.

About the Author

Fernando Rodríguez
Fernando Rodriguez is in charge of PR and Development at The Corner. He has worked for over 30 years for financial publications like Expansion, El Economista, Dossier Empresarial, Ciudadano and Afa Press-Worldfolio and has been a contributor to El Pais-Negocios, Emprendedores, Época, Sector Ejecutivo and Consejeros. Fernando holds a degree in Journalism from CEU-San Pablo (Complutense University) and a master’s degree in Strategic Communication from CESMA business school. As a communication consultant, he has developed PR projects for firms like Grupo Bancaja, JP Morgan, GBS, Corpfin, QBE, Howden, Asociación Española de Leasing y Renting (AELR) or Asociación Española de Accionistas Minoritarios de Empresas Cotizadas (AEMEC).