Our Vision for Sustainable Investment Stewardship

For the Long Term’s approach to Sustainable Investment Stewardship is rooted in the belief that financial leaders can shape a more resilient and equitable future by embedding principles of sustainability into investment practices. Sustainable stewardship involves not only maximizing long-term value for beneficiaries but also safeguarding broader social and environmental interests through responsible and transparent investment practices. State treasurers and financial leaders are uniquely positioned to drive these changes through proactive corporate engagement, transparent proxy voting, and strategic policy advocacy.

At the heart of sustainable stewardship is corporate engagement. By directly communicating with companies in their investment portfolios, financial leaders can promote responsible business practices that support long-term value creation and reduce systemic risks. Engagement empowers investors to advocate for transparency in areas such as environmental impact, human capital management, and executive compensation. For example, institutional investors may urge companies to set climate transition targets, prioritize diversity, or adopt fair labor practices. Engaging companies in dialogue on these topics strengthens accountability and aligns corporate actions with the goals of sustainability and social responsibility.

Another cornerstone of sustainable stewardship is proxy voting, a powerful tool for financial leaders to influence corporate governance. Proxy votes allow shareholders to express their positions on key issues, from board structure to sustainability reporting. By participating in these votes, financial leaders hold companies accountable for decisions that affect both financial performance and broader social outcomes. Proxy voting not only reinforces investor values but also drives companies to adopt practices that reflect long-term sustainability and ethical governance standards.

Sustainable stewardship also extends to private equity investments, where financial leaders play a vital role in fostering ethical governance practices. Public pensions and other funds can lead by setting responsible investment policies that prioritize environmental, social, and governance (ESG) standards, especially in sectors with significant societal impacts like healthcare and housing. Through responsible contracting policies and direct collaboration with stakeholders, financial leaders ensure that private equity practices align with ethical standards and contribute positively to society.

For the Long Term supports financial leaders in promoting these sustainable investment practices, recognizing that their influence can drive transformative change in corporate behavior and enhance overall market integrity. By championing sustainable investment stewardship, financial leaders not only fulfill their fiduciary duty to beneficiaries but also contribute to a resilient and inclusive economy that benefits all stakeholders.