![]() Our paper makes two important contributions to corporate governance discussions. Our paper argues that the growth of ESG stewardship is also based on an important transnational development that we call the “global ESG stewardship ecosystem.” This development involves a network of international, state, and private actors that operate globally to develop and promote ESG stewardship norms and encourage and support investors’ ESG stewardship on the ground. Commentators have also noted that investors may find ESG investment strategies commercially attractive, owing to strong demand for those strategies from environmentally and socially conscious clients and the potential for charging higher fees on ESG investment products. These include investors’ desire to manage non-diversifiable (or “systematic”) investment risks such as climate change, and political and regulatory initiatives that prompt investors to engage in sustainable finance practices. ![]() Scholars have identified various factors behind investors’ focus on ESG when engaging with their investee companies. This form of investor action (or “stewardship” as it is often called) is increasingly common in many markets across the globe. In a recent working paper, we highlight a significant transnational dimension to a remarkable corporate governance development: the dramatic increase in attempts by institutional investors to influence how the companies they invest in address material environmental, social, and governance (ESG) concerns.
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