Can a passive investor be a responsible investor?

In this paper we explain how active ownership is used to incorporate ESG criteria into passive investments. Capital at risk.

1 minute

A common criticism of passive investment in ESG is that, by nature of seeking to replicate an index, they can‘t actively engage with companies on ESG issues. But this isn’t the case.

It’s possible to achieve effective company engagement through an ETF by using an active ownership approach. Through proxy voting, we encourage the companies in which we invest to adopt best-in-class ESG practices, and our passive ETFs vote in line with the position taken by the largest Invesco active fund manager holding the same stocks.

Download the paper to see the impact of passive investments on ESG issues, including a climate change engagement case study >

Investment risks

The value of investments, and any income from them, will fluctuate. This may partly be the result of changes in exchange rates. Investors may not get back the full amount invested.

Important information

This marketing document is exclusively for use by professional investors in Ireland and the UK. Marketing materials may only be distributed in other jurisdictions in compliance with private placement rules and local regulations.

Data as at 26th November 2020 unless otherwise stated.

This document should not be considered financial advice. Persons interested in acquiring the product should inform themselves as to (i) the legal requirements in the countries of their nationality, residence, ordinary residence or domicile; (ii) any foreign exchange controls and (iii) any relevant tax consequences.

Where individuals or the business have expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice.

This document has been communicated by Invesco Investment Management Limited, Central Quay, Riverside IV, Sir John Rogerson’s Quay, Dublin 2, Ireland.

EMEA9471/2020

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