When dialogue fails, action speaks: Why Royal London Asset Management divested from an Indonesian bank

Royal London Asset Management’s Sustainable Equities team have divested from Bank Rakyat Indonesia. This was due to escalating governance concerns and the inability to influence meaningful change through engagement. Despite acceptable governance at the time of initial investment, recent developments have significantly worsened the governance profile of Bank Rakyat Indonesia (BRI). Royal London Asset Management have voted against multiple resolutions over several years and engaged extensively with the company, but the lack of transparency and accountability has it to conclude that the risk-reward...