This quarter’s Active Ownership Report updates our similar report from two years ago, highlighting the shifting consensus from ‘ESG 1.0’ to ‘ESG 2.0’.

Since we last wrote on this issue, new academic research and regulatory developments suggest that while ESG is likely here to stay, clearer distinctions between impact-focused and financially driven investments are increasingly necessary to avoid greenwashing and capital misallocation.

Our article appraises recent developments and reaffirms two of our long-standing recommendations concerning how ESG can be most beneficially integrated into the investment market.

The report also contains the usual selection of voting and engagement data and examples, as well as a piece on UK Defence firm and portfolio holding Babcock International.

We hope you enjoy the report, and please do be in touch with your questions.