Transparency and measurement of commitment effectiveness

The “Transparency and measurement of engagement effectiveness” pilot group is launched in February 2025.

As engagement initiatives on listed markets (shareholder and bond) multiply, a growing demand for transparency and assessment of their impact has emerged on the part of engaged investors and the companies involved.

For this reason, a pilot group bringing together institutional investors, asset managers and academics has been launched under the aegis of FIR, with the aim of developing a method for measuring the effectiveness of engagement.

The aim of this group is to create a common language and robust tools for assessing the performance of engagement, thus contributing to :

• Reinforce the credibility of engagement with companies and stakeholders
• Mitigate the risks of “commitment washing »
• Facilitate the selection of asset managers by institutional investors, and ensure better monitoring of activity
• Improve resource allocation within the entities concerned.

Next steps in the project:

• Summer 2025: First version of the deliverable submitted for consultation to FIR members and all other relevant stakeholders;
• Autumn 2025: Integration of consultation feedback and finalization of the method.