Integration means the active consideration of ESG data and qualitative assessments of ESG risks and opportunities at the company level, sector level, and asset class or country level .
Primary objective: to improve risk-adjusted returns & ESG portfolio performance.
Stewardship means engaging with company executives and board directors on their ESG related business strategy and performance, using shareholder power as needed to positively influence corporate behaviour. It also includes engaging with research providers (e.g. credit rating agencies, sell-side, ESG or proxy voting analysts) and regulators.
Primary objective: to align corporate behaviour with investors’ long-term interests.