In this second of two Q&As, John Galloway discusses Vanguard's views on climate change and the role that effective stewardship will play throughout the energy transition to mitigate the financial threat to long-term investors.
In this first of two Q&As, John Galloway, global head of Vanguard's Investment Stewardship team, discusses corporate governance practices and how Vanguard addresses ESG risks that can affect long-term shareholder value in its equity funds.
Investors seeking to achieve their investment goals while considering the impact of their money have more choices than ever. Understanding the different methods used to implement ESG investment strategies is a good first step for investors to help clarify the confusion.
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.
ESG investors want to invest with confidence. Confidence that they are aligning their investments with their values. Confidence that the screening process results in an investment that maintains a high correlation to the parent benchmark.