Investing in ESG leaders with a stewardship lens – Wellington Management

The value of strong corporate stewardship is gaining wider recognition across the investment industry.

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... When companies are led by an engaged board and a strong management team, allocate capital wisely for the long term and act in the best interest of all stakeholders, they have greater potential to reinforce their competitive advantage and enhance returns over time. Asset owners are increasingly drawn to investment strategies that combine responsible investing and competitive long-term returns. Stewardship grows in importance as you extend your time horizon. A long investment horizon and a high bar for inclusion result in a low turnover strategy that drives returns from investing in companies that incorporate ESG risks and opportunities into their business strategy to build long-term advantage in the pursuit of profit. But how do good corporate stewards create value over time and what constitutes effective stewardship investing?

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