While lobbying activities can foster positive change through constructive engagement between corporations and policymakers, unchecked lobbying poses significant risks for asset managers and owners.

Isio have observed that despite the significant impact investee companies’ lobbying efforts can have on sustainability issues, these activities are often overlooked in stewardship discussions.

In this article, Isio set out issues associated with lobbying and outline key areas for asset owners and asset managers to develop a more systematic and effective engagement strategy. Asset managers can look to integrate lobbying assessments into corporate diligence, engagement and collaboration strategies. In turn, asset owners should seek to ensure greater accountability by engaging with managers on their lobbying oversight, as well as collaborating with peers on corporate engagement, in line with their sustainability objectives.

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