Institutional investors and stewardship
The sustained growth of institutional investors’ assets under management, together
with the growing use of passive investment strategies, raises the question of whether
existing frameworks adequately address issues related to investor engagement and disclosure.
There has been a growth in the regulation of institutional investors and market intermediaries
to address conflicts of interest and to enhance their transparency. In parallel, the
adoption of stewardship codes and the number of signatories to such codes has been
increasing. Their proliferation and to some extent convergence offers insights on
recognised good practices. The paper also explores the apparent increase in engagement
among institutional investors with respect to environmental, social and governance
(ESG) issues, their increasing reliance on ESG ratings and data services, and whether
regulatory frameworks or guidance should evolve to take into account these new developments.
Published on September 19, 2022
In series:OECD Corporate Governance Working Papersview more titles