Insights

Our investment stewardship activities are focused on addressing material risks, including environmental, social and governance (ESG) risks, at the companies held by our equity index funds. These risks, if not recognised and managed, can undermine long-term value for investors.

Advisers increasingly need to guide clients through the ESG landscape, but what are the key questions to ask to determine an investor’s goals?

Jan-Carl Plagge, Global Head of Active-Passive Portfolio Research, Investment Strategy Group, Vanguard Europe, examines the behaviour of US ESG equity funds and looks at whether they have different return characteristics from the broader market.

Fong Yee Chan, head of ESG strategy, Vanguard Europe, explores some of the different ways to approach ESG investing and looks at how Vanguard incorporates ESG considerations into its product design and investment processes.

With robust stewardship practices, index funds can encourage good governance of environmental, social and governance (ESG) risks by the companies they invest in. That’s why we believe in the value of owning and engaging with companies on ESG risks. But it’s not our only approach.