Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/289579 
Year of Publication: 
2024
Series/Report no.: 
DIW Discussion Papers No. 2051
Version Description: 
Updated Version, April 2024
Publisher: 
Deutsches Institut für Wirtschaftsforschung (DIW), Berlin
Abstract: 
Applying universal ownership theory and drawing on multiple-case studies, this article analyzes what drives institutional investors to engage with government entities and what challenges they find in the process. We relied on document analysis and conducted twelve semi-structured interviews with representatives from asset owners, asset managers, investor associations, and academia. We identify a trend that investors conduct policy engagement to fulfill their fiduciary duty, improve investment risk management, and create an enabling environment for sustainable investments. As for engagement challenges, investors report the longer-term horizon, a perceived limited influence toward governments, the need for capacity building for investors and governments, as well as the difficulty in accessing government representatives. This research contributes to fill a gap in the literature on this new form of investor activism as a growing number of investors engage with sovereign entities on environmental, social, and governance (ESG) issues.
Subjects: 
shareholder engagement
shareholder activism
climate risk
climate change
environmental social and governance (ESG)
public policy engagement
sovereign engagement
sustainable finance
universal ownership
JEL: 
G15
G23
G32
G30
G34
G39
Document Type: 
Working Paper

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