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The Science of Climate Change

Climate change is no longer a distant threat or just a possibility, it is now a reality for all of us. In this pathway, Kevin Trenberth, a renowned climatologist, delves into the science behind climate change. He first introduces the climate system, its main components and forces.

Tackling the Plastic Crisis

Plastic pollution is by far the biggest threat to our oceans and this remains an incredibly tough problem to solve. Plastic credits could potentially serve as one of the much needed solutions for this crisis.

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The Scale of the Net Zero Challenge

The price of meeting net zero is estimated to be between $100-150 trillion over the next 30 years. Regardless of this cost, we need to reach net zero before climate change does irreversible damage to the environment and the economy.

ESG, Sustainability and Impact Jargon Buster

ESG, sustainability, impact… they all just mean green, right? Not quite. Despite being used often interchangeably, there are distinct differences between these terms.

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Featured Pathways

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The Science of Climate Change

Climate change is no longer a distant threat or just a possibility, it is now a reality for all of us. In this pathway, Kevin Trenberth, a renowned climatologist, delves into the science behind climate change. He first introduces the climate system, its main components and forces.

Tackling the Plastic Crisis

Plastic pollution is by far the biggest threat to our oceans and this remains an incredibly tough problem to solve. Plastic credits could potentially serve as one of the much needed solutions for this crisis.

More pathways

Ready to get started?

PLANS & MEMBERSHIP

Our Platform

Expert led content

+1,000 expert presented, on-demand video modules

Learning analytics

Keep track of learning progress with our comprehensive data

Interactive learning

Engage with our video hotspots and knowledge check-ins

Testing & certification

Gain CPD / CPE credits and professional certification

Managed learning

Build, scale and manage your organisation’s learning

Integrations

Connect Sustainability Unlocked to your current platform

Featured Content

More featured content

The Scale of the Net Zero Challenge

The price of meeting net zero is estimated to be between $100-150 trillion over the next 30 years. Regardless of this cost, we need to reach net zero before climate change does irreversible damage to the environment and the economy.

ESG, Sustainability and Impact Jargon Buster

ESG, sustainability, impact… they all just mean green, right? Not quite. Despite being used often interchangeably, there are distinct differences between these terms.

More featured content

Ready to get started?

Ready to get started?

The Importance of Stewardship

The Importance of Stewardship

Arun Kelshiker

20 years: Asset management and stewardship

In the final video of this two-part video series, Arun explains why stewardship is important. First he discusses the ways in which investors exercise stewardship across different asset classes, then he looks at the reasons for actioning stewardship, and finally he finishes by talking about the current trends within stewardship and what the future looks like.

In the final video of this two-part video series, Arun explains why stewardship is important. First he discusses the ways in which investors exercise stewardship across different asset classes, then he looks at the reasons for actioning stewardship, and finally he finishes by talking about the current trends within stewardship and what the future looks like.

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The Importance of Stewardship

10 mins 12 secs

Key learning objectives:

  • Understand the ways through which investors action stewardship across different asset classes

  • Identify the reasons for actioning stewardship

  • Assess the future of stewardship

Overview:

Stewardship is not the same across all asset classes. Investors of different asset classes will have different levels of influence and different desired outcomes. All should use stewardship however with the intention of achieving the highest possible outcomes but also to help with societal and environmental issues. Following this, we are seeing a major shift within stewardship from governance issues only to the broader environmental, social and governance issues.

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Summary

How do investors action stewardship across different asset classes?

Shareholders are increasingly expected to exercise their voting rights and input into key company decisions including director appointments and board pay.

Fixed income investors can influence issues with clearly defined legal rights. 

Private equity owners often have a substantial ownership stake together with board positions. This allows them to directly influence a company given the collaborative development of a company. 

Private debt holders can also employ specific deal terms to achieve their intended outcomes.

Why should investors action stewardship? 

There are 4 main reasons investors should action stewardship:

  • Fiduciary duty
  • Regulation
  • Risk management
  • Universal ownership / accountability

Fiduciary duty within investing, is a person or organisation that carries a position of trust along with the legal responsibility for managing the monies of others in their best interests. Stewardship is considered to be part of an investors’ fiduciary duty. 

Regulations include stewardship codes which can be voluntary or mandatory. Two popular codes in Europe include the Financial Reporting Council’s UK Stewardship Code, which was revamped in 2021, as well as the European Union Shareholder Rights Directive or SRD II, which both incorporate how stewardship is addressing ESG issues.

Investors are also incentivised to look beyond solely the interests of their individual investees and engage on systemic issues, aligned with broader sustainability outcomes and well-functioning financial markets.

Finally, a slight variation on Universal Ownership, is that investors as stewards, represent key stakeholders holding corporations accountable where regulation and governments have failed.

What trends are we seeing in stewardship?

Current approaches have highlighted the importance of collaborative action and the need to collectively come together, with one voice to achieve common goals. 

In the past, stewardship efforts were generally focused on governance issues. While governance continues to remain important,  we are seeing the broader Environmental, Social and Governance or ESG coming to the forefront of investors’ stewardship efforts.

We have also seen a year-on-year increase in social resolutions across the areas of diversity, equity and inclusion, greater fair pay and racial justice. 

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Arun Kelshiker

Arun Kelshiker

Arun Kelshiker was formerly the Head of Asset Allocation and Portfolio Strategy at Standard Chartered Bank and part of the bank's Global Investment Committee, where he provided investment advisory and multi-asset portfolio solutions. His focus is now with Cambridge Sustainable Investment Partners, which draws its expertise from the Resilience and Sustainable Development Centre at Cambridge University. He is also a university lecturer at the Frankfurt School of Finance and Management and is Vice Chair of the CFA UK's Inclusion and Diversity Committee and its Investment Committee.

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