From portfolio to real economy: using Responsible Business Conduct due diligence as a tool for engagement

Oct 3, 2023 | 11:30 AM - 12:30 PM
Conference Room CC12

As institutional investors increasingly commit to climate goals and net-zero targets, a pivotal question arises: how can Paris-aligned portfolios lead to real economy decarbonisation? Climate stewardship and corporate engagement – the practices through which investors can influence conduct of their investees – is being progressively mainstreamed as a way to translate these commitments into tangible outcomes. Yet, engagement has taken many forms, leading to mixed impacts and leaving room for missed engagement opportunities and potential greenwashing. In view of the recent update of the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct and the upcoming tool for institutional investors on “Managing Climate Risks and Impacts through Due Diligence for Responsible Business Conduct“, this session will explore how the RBC due diligence framework can be applied throughout institutional investors’ stewardship efforts to more consistently manage climate risks and impacts associated with investee companies. The session will connect the dots between current trends in corporate engagement and stewardship, transition plans, divestment and just transition considerations for investors while reflecting on the upcoming regulatory development in that space.