Institutional Investors and Shareholder Proposals

The video discusses the importance of carbon risk disclosure, using Aruna Capital's engagement with ExxonMobil as an example. It highlights the role of institutional investors in environmental, social, and governance (ESG) practices, emphasizing their long-term investment horizons. The video also covers shareholder activism, sustainable palm oil, and the need for transparency in resource utilization and waste management. Governance and lobbying practices are examined, along with trends in shareholder engagement and the growing diversity of investment assets.

What was the significance of Aruna Capital's action towards ExxonMobil?

• It resulted in a lawsuit against ExxonMobil.

• It caused ExxonMobil to stop using fossil fuels.

• It led to a merger between the two companies.

• It was the first time ExxonMobil disclosed its carbon risk.

Why is sustainable palm oil important for companies like Starbucks?

• It reduces production costs significantly.

• It ensures palm oil is sourced without harming rainforests.

• It increases the shelf life of products.

• It is a requirement by the government.

What is a key reason institutional investors focus on sustainability?

• To attract more retail investors.

• To comply with government regulations.

• To address long-term risks and ensure portfolio resiliency.

• To increase short-term profits.

What is a major challenge in corporate governance related to lobbying?

• Excessive lobbying expenses.

• Lack of clear communication about lobbying interests.

• Too many lobbying firms involved.

• Lobbying only benefits small companies.

How are investment trends changing in relation to environmental and social values?

• Investments are focusing more on short-term gains.

• Social values are being ignored in favor of economic growth.

• There is a growing emphasis on aligning investments with environmental and social values.

• Investors are avoiding any environmental considerations.