New service to customize ESG voting advice for institutional investors
EIRIS, the ESG research organization, will join forces with proxy advisory firm Glass Lewis to launch a proxy voting service aimed at allowing institutional investors to vote for corporate directors with ESG principles in mind.
The new service will give institutional investors that currently work with Glass Lewis the option of linking their votes for directors to dissatisfaction with ESG reporting at the company, Glass Lewis and EIRIS say in a press release.
‘We are delighted to be able to offer information over the Glass Lewis platform,’ says Peter Webster, chief executive of EIRIS.
‘How a company tackles environmental and social issues is increasingly becoming an important element is assessing whether a board is fulfilling its responsibilities to look after the long-term interests of shareholders. When the time comes to re-elect directors, shareholders will want to know whether the company has fallen behind on material environmental and social issues.’
Under the agreement, clients that use the service will receive notes based on research by EIRIS analysts through the Glass Lewis system. EIRIS and Glass Lewis, which serves as proxy adviser to institutional investors that collectively manage more than $15 tn, say the new system will be available for 1,500 leading global companies and will expand further as soon as possible.
The information given to institutional investors will combine the knowledge of Glass Lewis about the performance of each individual director up for election with the research methods and expertise of EIRIS, which has 30 years’ experience of providing asset owners, asset managers, banks, stock brokers and governments with research on ESG performance.
The clients will initially receive the service in the form of standard summary notes ahead of elections. Eventually, they will also be able to order a customized service that will allow them to choose their voting preferences.
