Stewardship refers to the responsible and accountable management or oversight of resources, assets, or interests entrusted to an individual or organization. It involves taking care of and making decisions in the best interest of the stakeholders, the environment, or the broader society. Stewardship can be applied to various contexts, including financial management, environmental conservation, corporate governance, and social responsibility.

Key Matters and Considerations in ESG

Here are some key points about stewardship:

– Fiduciary Duty: Stewardship often involves a fiduciary duty, where individuals or organizations are entrusted with the management of assets or resources on behalf of others. This duty requires acting in the best interests of the beneficiaries and prioritizing their long-term well-being over short-term gains.

– Responsible Management: Stewardship emphasizes responsible and sustainable management practices. It involves considering the long-term implications and impacts of decisions and actions on the well-being of stakeholders and the environment. This may include promoting transparency, ethical conduct, and accountability.

– Asset Protection and Preservation: Stewardship involves the protection and preservation of assets or resources. This includes maintaining their value, ensuring their sustainable use, and minimizing risks or negative impacts. Stewards may implement strategies to safeguard assets against potential threats, such as environmental degradation, financial risks, or misuse.

– Engagement and Collaboration: Effective stewardship often involves engaging and collaborating with relevant stakeholders. This includes seeking input, considering diverse perspectives, and involving stakeholders in decision-making processes. Collaboration can enhance transparency, accountability, and the effectiveness of stewardship efforts.

– Long-Term Perspective: Stewardship emphasizes taking a long-term view rather than focusing solely on short-term gains. It involves considering the impacts and implications of decisions and actions on future generations. Stewards strive to leave a positive and sustainable legacy for future stakeholders.

– Multi-Dimensional Approach: Stewardship extends beyond financial considerations and encompasses social, environmental, and governance aspects. It involves managing risks, promoting responsible business practices, addressing social and environmental issues, and ensuring compliance with relevant regulations and standards.

– Stewardship Codes and Principles: Many jurisdictions and industries have developed stewardship codes or principles to guide responsible behavior and practices. These codes provide frameworks for organizations to enhance their stewardship activities, improve transparency, and strengthen their accountability to stakeholders.

Overall, stewardship is a principle-driven approach that emphasizes responsible and sustainable management of resources, assets, or interests. It recognizes the importance of acting in the best interests of stakeholders, promoting long-term sustainability, and leaving a positive impact on society and the environment.