Climate risk glossary
Stewardship
Stewardship, also known as active ownership, refers to the use of influence and rights by investors to protect and enhance the long-term value for their clients and beneficiaries, including the overall economic, social, and environmental conditions on which their interests rely. Stewardship involves engaging with investee companies and issuers, exercising voting rights, and collaborating with other investors to drive positive changes that lead to better financial returns and improved real-world outcomes (see PRI). Motivations for stewardship include enhancing risk-adjusted returns, meeting regulatory expectations, fulfilling fiduciary duties, and contributing to sustainable development goals.