Insights

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.

Vanguard’s investment stewardship team serves as the voice of our investors by advocating for good governance practices at the companies in which our funds invest. We believe this can enhance and safeguard shareholder value over the long term.

In part two of our active equities blog, we get an exclusive insight to the investment strategy of Wellington Management’s Opportunistic Value team, which manages 50% of the Vanguard Global Equity Fund.

Fong Yee Chan, head of ESG strategy, Vanguard Europe, examines why it’s important to understand the screening methodology, investment implications and portfolio outcomes of exclusionary-screened corporate bond products.

Last year, Vanguard discussed the pandemic and its impact with companies around the world across different sectors. These conversations were grounded in our four core investment stewardship principles of oversight of strategy and risk, executive compensation, board composition and shareholder rights

Mark Fitzgerald, head of product specialism, Product Management, and Ida Svensen, investment product specialist, explore the impact of different ESG ratings and methodologies and why investors should understand their ESG index.