Best Practices for Systemic Stewardship in Investment Management

This guide outlines best practices for systemic stewardship aimed at investment managers. It defines systemic stewardship as the engagement of investment market participants to address systemic risks through systems-level change, which includes climate change, socio-economic inequality, and antimicrobial resistance. The document emphasizes the importance of collective action among asset owners, managers, advisers, and insurers to mitigate these risks. It details the expected focus areas for investment managers, including long-term financial returns and the necessity for proactive engagement with policymakers and regulators. The guide also presents principles for effective systemic stewardship, such as establishing clear policy positions, adopting a strategic approach, maintaining a robust governance framework, ensuring consistency in engagement activities, and collaborating with other stakeholders. Additionally, it highlights the need for regular monitoring of stewardship activities to assess their effectiveness and to ensure adequate resources are allocated for these initiatives.