Gustavo Bernal Torres
Shadow Boards Engagements
Borrowing from activist hedge funds playbook is something mainstream institutional investors need to seriously contemplate.
The issue of limited engagement success, in the absence of large-scale divestments, remains a perennial ESG hurdle that the responsible investing industry is yet to resolve. Building on this, I would like to focus on engagement in the context of net zero transformation, and why the current engagement model is not fit for purpose.
The transition to a sustainable net zero economy requires a fundamental transformation of sectors, industries, and business models. Transformations of this nature require a deep understanding of the micro and macro factors underpinning the value creation and capture process of a multitude of companies and industries. The knowledge base for this understanding tends to exist within companies, at the board level and not at the shareholder level.