The Point

ESG: Why investors need a new way to engage with companies

Engaging with investees is at the core of sustainable investing.

But the ESG-related issues facing companies are now so complex that investors need another approach, says Regnan’s Alison Ewings.

Company-specific engagement remains important for driving direct outcomes, says Alison, who heads up engagement at sustainable investing leader Regnan.

But many aspects of meaningful change can only come when businesses, not-for-profits, researchers and governments share information and co-ordinate action, she says.

Agriculture is a case in point, with complex sustainability issues across the value chain including climate change, soil health, pollution, water scarcity, food waste and biodiversity and eco-system loss.

“A system-wide approach is going to be required in order to change complex value chains which stretch across our entire economic and social system.”

Regnan last month hosted its first   Director Roundtable on Sustainable Agriculture, bringing together senior executives and directors to identify barriers to sustainable agricultural and food production.