The article explains the concept of systemic stewardship: how investors can influence policies, regulations and economic structures to address systemic risks like climate change or pandemics that affect entire markets. While company-level engagement is useful, it is insufficient without system-wide change, making systemic stewardship essential.

Investment managers play a crucial role given their scale, influence and existing stewardship practices, though many still fall short due to political sensitivities and the difficulty of measuring impact. The piece outlines best-practice principles for systemic stewardship, including clear policy positions, robust governance, collaboration, progress monitoring, adequate resourcing and transparency. These principles can guide managers in strengthening their approach and help asset owners hold them accountable, to ensure systemic risks are properly addressed in the interest of beneficiaries.

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