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We can all get along (part II)

This is the second part of a two-part paper asserting that the shared interests of bondholders and shareholders provide incentives to jointly engage companies – and generate positive outcomes by doing so. In part one, we disproved the claim that the imperatives of bond and shareholders typically diverge and argued that both financial stakeholders have the legitimacy to engage. In this paper, we explain how bondholders can play their part in promoting the interests of all financial stakeholders.

In this paper, we progress from our philosophy of engagement on environmental, social and governance (ESG) factors to the practice of it. The foundation for corporate engagement, which we see as inexorably linked to investment itself, is grounded in the belief that stakeholders have the legitimacy to do so. We believe that when we speak to a company on this basis, our voice is louder, more credible and more influential.

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We can all get along
In this two-part paper, we assert that the shared interests of bond and shareholders in companies provide incentives to jointly engage companies – and generate positive outcomes by doing so. In this first instalment, we dispel the fallacy that the imperatives of bond and shareholders typically diverge, and argue that their common standing as financial stakeholders gives them the legitimacy to engage corporate boards and management teams to encourage sustainable growth and long-term value creation.
Amplified: We can all get along
In this podcast, Eoin Murray, Head of Investment, is joined by Mitch Reznick, Co-Head of Credit and Head of Credit Research and Hans-Christoph Hirt, Head of Hermes EOS and Stewardship Services to discuss the first instalment in a two-part paper we have recently published titled ‘we can all get along’.
Pricing ESG risk in credit markets: reinforcing our conviction
Bonded: EM credit and ESG
Opportunities to engage on ESG issues in EM credit are plentiful
360° – Fixed Income Report, Q2 2019
Where next after the market's fall and rise?
360° – Fixed Income Report, Q1 2019
Crunch time? Not yet, and opportunities persist