Shareholders Rights Directive (EU) 2018/828

Issuer name

EU

More information

The objective here is to increase shareholder engagement so their decisions are more aligned with the company’s development rather than with short-term share price movements. There are several stipulations (see below) where disclosures of non financial information is required for complying with the directive. Updated 3/4/2017 1. Member States shall ensure that institutional investors and asset managers develop a policy on shareholder engagement (“engagement policy”) This engagement policy shall determine how institutional investors and asset managers conduct all of the following actions: (disclaimer, lists more actions)(b) to monitor investee companies, including on their non-financial performance. 2. Where an asset manager invests on behalf of an institutional investor, either on a discretionary client-by-client basis or through a collective investment undertaking, the institutional investor shall annually disclose to the public the main elements of the arrangement with the asset manager with regard to the following issues: (disclaimer, lists more issues)(b) whether and to what extent it incentivises the asset manager to make investment decisions based on medium to long-term company performance, including non-financial performance, and to engage with companies as a means of improving company performance to deliver investment returns. 3. Member States shall ensure that asset managers disclose to the institutional investor on a half-yearly basis all of the following information: (disclaimer, lists more info) (a) whether or not, and if so how, they make investment decisions on the basis of judgements about medium-to long-term performance of the investee company, including non-financial performance;

Comply or explain

True

Organizations covered by the instrument

Large private and listed companies

Target organization notes

regulate on the listed companie, nstitutional investors, asset managers, intermediaries and proxy advisorss to create a more transparant and engagine rules for their sharolders

Industry scope

All/none specified

ESG coverage- G (Governance)

Remuneration, Stakeholder Engagement, Accountability, Anti-Corruption and Anti-Competitive Behaviour