ICGN NYC 2025 Conference – Reflections

As we gather in New York City - a financial capital with deep roots in investor stewardship - it’s been both humbling and galvanising to witness ICGN members engage with such candour, commitment, and resolve.

We began with a powerful keynote from Comptroller Brad Lander, who reminded us that the struggle for inclusive governance is not new. In 1992, the New York City pension funds challenged discriminatory hiring practices at Cracker Barrel - a bold shareholder proposal rooted in the belief that human capital risk is material.

Across the sessions, several themes emerged with urgency and clarity:

1. The Fragile Infrastructure of Governance Must Not Be Taken for Granted

The governance infrastructure built post-Enron is under strain. As investors, we must remain vigilant: shareholder rights, independent audit, and transparent disclosure are foundational to capital markets and long term value creation. 'Governance is hard. Good governance is doubly hard.' It is our shared responsibility to defend it - not just for investors, but for the integrity of markets globally.

2. Systemic Stewardship: Now is the Time for Global Alignment, Not Retreat

Regulations and markets may develop differently - whether in Canada’s provincial governance or Brazil’s fiscal challenges and rising interest rates - they must not deter us from aiming for coherence to progress.

In Japan, we heard of encouraging alignment between the FSA, TSE, and METI, demonstrating that policy coordination and investor dialogue can reinforce market progress. Likewise, India’s evolving regulatory architecture shows promising momentum - with true stewardship moving from compliance to proactive engagement.

3. Assurance and Reporting: Innovation Must be Matched by Accountability

As sustainability standards evolve, we must ask: who owns the data? As AI begins to reshape assurance, we must avoid the false dichotomy between innovation and oversight. With ISSB and IAASB driving global convergence, the role of investors in pushing for credible, decision-useful, third-party assured data will only grow.

We are entering an era where sustainability risks are being priced into credit markets, sovereign debt, and equity valuations. As shared by bond and sovereign investors, climate is no longer a niche issue; it’s a systemic financial risk.

4. Human Capital and Culture: At the Heart of Long-Term Value

A powerful theme throughout the conference was that diversity and inclusion is about talent management that is financially material.

Boards must evolve - as Professor Didier Cossin highlighted in his inspiring keynote, only well managed diversity improves performance. Governance comes from the Greek word 'kubernaein' which means 'to steer', to give direction - and giving direction requires courage, especially in a world of polarising values, conflicts and disruption.

5. Recalibrating for the Future: Pragmatism, not Absolutism

And therefore stewardship strategies must adapt to diverging regulatory and political environments. Adaptation does not mean capitulation. We must reaffirm our fiduciary duty, reassert the relevance of long-term capital oversight, and resist the dilution of shareholder rights cloaked in rhetoric. As birthday boy Daniel Summerfield highlighted, it is time to go back to the origin of investor stewardship - focusing on responsible allocation and management of capital, and integrate relevant extra-financial considerations into financial modelling.

Throughout the conference, members shared valuable and practical examples of engagement strategy, tactics and approaches. For instance, bond investors engage with investment banks on structuring, and engagement with issuers usually begin well before the next issuance so there is plenty of time to discuss the details and expectations. Engagement is about constructive discussion for progress that works for both capital allocators and companies.

Climate engagement is part of systemic stewardship; it is not just an idiosyncratic risk. Investors want return not impacted by financial burdens of environmental consequences.

Integrating technology into stewardship was widely discussed. ICGN first introduced the topic of AI at our Washington DC conference in 2024. The focus has now expanded to how asset owners and asset managers are using AI to support corporate governance review, research activities, gap analysis, engagement prompt generation and impact tracking. I am sure there will be more use cases to explore in future.

CONCLUSION

As ICGN Chair, I want to acknowledge the tenacity and courage of our members, who despite headwinds, remain steadfast in their commitment to better governance.

We started the conference with a reflection on a shareholder proposal filed over 30 years ago - and we close with positive sentiment that progress is possible when purpose and perseverance meet, grounded in financial materiality.