Active Ownership. Equity investors can exercise the voting rights at shareholders' meetings in relation to governance and business strategy, including the environmental performance. In addition, institutional investors engage with the management and the boards of directors of investee companies. Active ownership is therefore defined as the full exercise of the rights that accrue to the 'owners' of the securities issued by companies . Active owners are entitled to question and challenge the robustness of financial analyses and the risk assessment behind strategic decisions including the environmental footprint ones. For instance, since fossil fuel businesses face the prospect of dramatic business decline  and must revisit their business model to survive, active ownership by institutional investors may foster the transition to cleaner production and supply chain. Companies more exposed to carbon risks particularly need the active support of long-term shareholders. In turn, investors adopting an active ownership approach can manage their holdings' exposure to climate change risks, thus protecting the value of their investments on a long-term horizon .
IPCC
Climate Change 2022: Impacts, Adaptation and Vulnerability
IPCC Report