Active Ownership and Engagement

Active ownership is the proactive use of shareholder rights and position to influence the activities and behavior of investee companies. It involves engaging in dialogue with companies, voting shares, filing resolutions, and escalating concerns to drive positive change and protect long-term value (see PRI). Active ownership differs from passive investing by seeking to actively influence corporate behavior rather than simply tracking market indices. Engagement is a key component of active ownership and refers to communicating with companies to express concerns, seek information, and advocate for change. Active ownership prioritizes real-world outcomes, focuses on common goals benefiting the economy and society, and emphasizes collaborative action. It can be practiced across asset classes, including equities, fixed income, and private markets.