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Impact of Equity Engagement

The Impact of Equity Engagement (IE2) is a multi-stakeholder initiative launched at a convening in Boston in December 2013. IE2 seeks to develop a framework that can inform how the impact of public equity engagement activities are tracked and reported.

IE2 seeks to answer the following questions:

  • Can the full range of engagement activities, from proxy voting and shareholder resolution filing to direct dialogs, networked campaigns, and policy action, be isolated, tracked, and potentially weighted for their impact?
  • Can investors quantitatively measure the impact generated by engagement activities, in light of the qualitative nature of most social and environmental outcomes?
  • Can this analysis reveal the factors which make for more impactful shareholder engagement?
  • Can the impact of public equity engagement activities be reported through a standardized framework? Will investors commit to using such a framework to report on their engagement activities?

Phase 1 of the initiative culminated in the release of the above report, and a draft of the reporting framework. 

Twelve investors have already committed to alpha-testing IE2's reporting framework by using it to track their engagements during the 2015 proxy season:

  • As You Sow
  • Boston Common Asset Management 
  • Calvert Investments
  • Clean Yield Asset Management
  • Everence
  • First Affirmative Financial Network
  • Green Century Funds
  • Investor Voice
  • Newground Social Investment 
  • NorthStar Asset Management
  • Pax World Management 
  • Sonen Capital
  • Trillium Asset Management
  • Walden Asset Management

 

 

The IE2 initiative is currently reaching out to investors and stakeholders in order to identify partners, sponsors, and supporters for the next year of activity. Phase 2 of the initiative involves implementing the draft reporting framework for use by the initiative members, coordinating a consultation process to obtain stakeholder feedback, and creating a revised reporting tool independently or through partnership with stakeholder partners.


Because most previous efforts to document the impact of engagement have been anecdotal rather than analytical, a major objective of this phase is not only to develop new, more standardized ways to track and report engagement activities, their outcomes and impacts, but also to provide useful tools for investors to track and evaluate their own engagement, to determine areas for improvement, and to learn from other engaged investors.

 
For more information about partnering and participating in this initiative, please contact us at (919) 794-7440 x110, or by This email address is being protected from spambots. You need JavaScript enabled to view it..

 
On November 12, 2014 the IE2 initiative released a new report revealing the positive outcomes of investor engagement on the environmental, social, and corporate governance practices of publicly traded companies. The report also proposes a new framework for tracking the impact of shareholder activities--over a dozen investors have already committed to alpha-testing the reporting framework by using it to track their engagements during the 2015 proxy season.

  • Download the full report.
  • View a presentation of the Engagement Reporting Framework.
  • Read the press release.
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