How Important is Shareholder Activism in promoting the Green Transition?

Colin Melvin

What are the most effective ways for investors to propel action among companies that need to do more to combat climate change and its related issues? This question has been central to the rise of ESG investing, including back in 2005 during the drafting of the UN’s Principles for Responsible Investment (UNPRI), when the term ‘ESG’ was coined. Colin Melvin was in the room when this issue was being considered, as one of the co-authors and Chair of the UNPRI’s investor group when the Principles were launched in 2006. In his capacity as an External Lecturer at CBS, we were able to speak to Colin about investment stewardship and shareholder activism, and hear his views on the ways that investors can most effectively bring about change.

Colin has been at the forefront of global developments in sustainable finance since before it was on-trend, and now has over 28 years of experience in investment stewardship and corporate governance. His work has included being Hermes Investment Management’s Global Head of Stewardship and Chair of InfluenceMap, which ranks the extent to which corporations are lobbying negatively on climate and energy policy. His current day job is as Founder and MD of Arkadiko Partners, a consultancy aiding his asset manager and asset owner clients in implementing comprehensive sustainable investing strategies, particularly focusing on stewardship.