By Jean-Philippe Desmartin, Head of the Responsible Investment Team at Edmond de Rothschild Asset Management (France)
Engagement – whether financial or ESG-related, individual or collective – concerns all investors, whether active or passive. It is one of the three pillars of stewardship policies, alongside dialogue and voting policy. On 8 June, ten investors, including Edmond de Rothschild Asset Management, published a report entitled “The VOICE Method for measuring the effectiveness and influence of engagement” under the leadership of the Forum for Responsible Investment (FIR) and with the support of academics and the PRI.
Comprising active but non-activist investors, this working group spent 15 months developing concrete tools designed to become common standards for both institutional investors and asset management firms. It was established in late 2024 in response to the need to clarify numerous issues (definition, accounting, reporting, resources) and to provide a framework for measuring effectiveness and influence. Whilst many ‘committed’ companies complain about the proliferation of investor engagement initiatives, which are sometimes poorly structured or irrelevant, this report puts quality back at the centre, moving beyond purely quantitative publicity stunts. It also emphasises the need to focus on results, and not just on the means.
The practical tools proposed cover the needs of individual as well as collective engagement. They are also relevant for engagement by both equity and bond holders. Originating in the Paris financial centre, this report has a European scope and will be the subject of extensive discussion in the coming months, particularly in countries where pension funds play a key role (the Netherlands, Sweden or Switzerland, for example). This work is all the more encouraging given that Europe is struggling to come to terms with 10 years of a regulatory framework that is both dense and unstable.
This type of initiative, driven by practitioners and rooted in real-world experience, provides a concrete response to the need to share best practices in order to advance engagement. In this context, Edmond de Rothschild Asset Management has decided to align its own engagement practices with the VOICE method by 1 January 2027.
Summary:
• News: European sovereignty and sustainability: allies in reducing critical dependencies
• From an academic point of view: Biodiversity finance by Flammer C., Giroux T., Heal G.M.
• Company meetings: Focus on ASML
• Recommended reading: The righteous mind
• The responsible investment team in action: Why do investors take human capital into account?