Making the Case for Engagement

Calls for divestment continue to grow. California, the world’s fifth largest economy, delivered a suite of proposed legislation this year calling for state retirement funds to divest from fossil fuel companies, while banks and financial institutions have vowed to stop financing new fossil fuel projects. 

Meanwhile, investor engagement initiatives supporting the transition to net-zero energy are still working to develop guidance on effective investor engagement, and have faced scrutiny for a lack of progress thus far. More investment and finance is needed. So what is the case for engagement rather than divestment as an investor strategy? What does meaningful, effective investor engagement toward net-zero and the just transition look like?