®) ROCKEFELLER & CO. Accountability & Reflection As the Governor of the Bank The crisis also underscored the stewardship’ in capital markets. of England Mark Carney said lack of effective shareholder It started to adopt stewardship in 2015, the “crisis and its scrutiny of boards of directors codes to engage with companies aftermath laid bare that many and senior management on in seeking to improve business of our markets didn’t live up to essential corporate governance practices and disclosures. These these standards” of transparency, issues such as risk management, efforts were focused on seeking responsibility and accountability, | corporate strategy, independence major reforms towards financial and warned that until markets and long-term value creation.” stability and greater corporate regain those qualities they cannot To overcome these shortcomings, responsibility. retain their social license to the global investment community operate. took on the role of “active 2010: Active Stewardship is Born The concept of “active The adoption of stewardship ESG issues to identify potential stewardship” was first introduced codes in many national long-term business risks and in the United Kingdom in markets highlights a new set of encourage opportunities such as 2010 when the country’s responsibilities for shareholders. management quality and ethics, Financial Reporting Council By signing on, institutional human capital and labor issues, introduced the UK Stewardship investors commit to closely climate change and low carbon Code.” According to the code, monitor their companies and economy. We believe that such stewardship means that investors to use their voting power to engagements can have a long- are expected to proactively improve corporate behavior. lasting impact both on business engage with companies on issues _ Ass fiduciaries, investors also profitability and competitive of strategy, performance, risk, commit to be more transparent advantage. capital structure, and