Effectiveengagement strategiesrequireclear escalation measuresif a companyfails to address ESG concerns. Escalation steps include:
Private dialoguewith management
Public shareholder resolutions
Proxy voting or divestment threats
Option A is incorrect because investorsprioritizekey ESG concerns rather than engaging on every issue. Option B is misleading—financial performance is a critical part of ESG engagement discussions.
[References:, Principles for Responsible Investment (PRI) Guide to ESG Engagement, CFA Institute Guide to Active Ownership, UK Stewardship Code 2020 Best Practices, ========, , ]
Submit