The Thinking Ahead Institute (TAI) has been selected by the United Nations supported Principles for Responsible Investment (PRI) to research and assess the appropriate level of resources that institutional investors should be prepared to dedicate to stewardship within their organisations.

The joint TAI/PRI project is global and will involve an institutional benchmarking study to better understand current stewardship practices, resourcing requirements and other key costs.

It will include examples of best practice stewardship by asset owners and asset managers and how their activity is monitored, measured and disclosed.

In addition, it will propose a calculation methodology to estimate appropriate levels of resources that investors should be prepared to dedicate to both direct and market stewardship activities, in order to have a real-world impact.

Marisa Hall, co-head of TAI, said: “The investment industry is at a pivotal moment in determining its role in shaping future economies, societies and the environment around us. We are very excited to be working in partnership with PRI, our membership at the Thinking Ahead Institute and other engaged investors to set industry guidance for investors on stewardship resources.”

She said this is an important project aimed at encouraging positive behavioural change and increasing stewardship resources commensurate with rising systemic risks.

“Robust and well-resourced stewardship practices are vital to ensuring that investors are able to maximise overall long-term value. It also strongly aligns with our mission in the Institute to mobilise capital for a sustainable future,” she added.

Paul Chandler, director of stewardship at PRI, said: “Effective stewardship relies on good practice but also on the having the right level of capacity in place to make progress. As responsible investors grapple with ever greater threats from systemic sustainability issues, we look forward to working with the Institute and with our signatories to help the industry better understand what the right level of resourcing is to protect long term returns.”

The project will involve interested industry participants from across the size and asset-class spectrum and is expected be completed in July 2023.

The latest digital edition of IPE’s magazine is now available