Pension providers increasingly rely on stewardship – particularly shareholder dialogue – to influence companies, either by directly engaging with corporate executives or by paying asset managers to engage on their behalf. While research on stewardship is growing, no studies have yet focused on how individual engagement specialists perform their work and how this impacts their influence on companies.

This WorkPackage4.1 focuses in particular on how the business case for shareholder dialogue shapes the work of engagement specialists – whether they operate within pension providers or on behalf of them. This business case suggests that shareholder dialogue will improve portfolio financial performance, and investment firms frequently use it to justify engagement activities. However, this focus has consequences. Recent research by the WP-leader indicates that a narrow focus on financial returns may lead investment firms to miss key opportunities for positive environmental and societal impact. This WP4.1 uses key insights stemming from WP1 (drivers of and barriers in sustainability decisions by individuals) and is closely linked to WP4.2 (investment strategies for sustainable business models) as well as WP5 (legal context of sustainable investments by the pension sector).

Key research question: How do engagement specialists navigate tensions within the business case for shareholder dialogue and how does this shape their daily work?