Stewardship has become a cornerstone for organisations committed to responsible investment and governance. Yet, despite its importance, over 90% investment teams rely on outdated tools like spreadsheets. While spreadsheets may seem efficient for individual team members, they fall short in delivering institutional value in today’s data-driven world. Advanced technology offers opportunities to optimise stewardship, improve outcomes, and save time.

Spreadsheets in Action: Their Role in Stewardship

Spreadsheets have long been a go-to tool for stewardship tasks. Teams use them to track engagement activities, monitor Environmental, Social, Governance (ESG) metrics, and compile reports. Their flexibility allows users to organise data into custom formats, perform calculations, and generate charts. Spreadsheets also enable sharing through email or cloud platforms, providing a basic level of collaboration.

In the stewardship workflow, responsibilities vary based on organisational structure. Some firms have dedicated stewardship teams focusing solely on engagement and sustainability initiatives. In others, the stewardship function is embedded within fund management, requiring fund teams to balance stewardship activities alongside investment decisions. Regardless of the structure, fund teams often handle responsibilities like engaging with portfolio companies, monitoring progress, and ensuring alignment with ESG goals. Spreadsheets often act as the central tool for managing these workflows, though they struggle to keep pace with the growing complexity of these tasks.However, these advantages come with significant limitations. As organisations grow, the simple structure of spreadsheets becomes inadequate for managing complex, interconnected data. What starts as a convenient tool for small-scale operations can quickly become a bottleneck for institutional-level stewardship.

The Problem with Spreadsheets:

Spreadsheets serve as a basic tool for data management. However, they lack the sophistication required for modern stewardship. The limitations become evident when handling complex data or scaling initiatives, especially with emerging data sets such as dynamic ESG metrics, real-time climate risk assessments, and supply chain impact analyses. Tracking these requires tools that can process continuous data updates, incorporate third-party integrations, and handle unstructured data like text or images. Spreadsheets fall short in aggregating these diverse and evolving data sources effectively.

Most importantly, stewardship data is valuable for organisations as it holds a wealth of institutional memory. However, firms struggle to confidently report and communicate the difference they make. This gap undermines their ability to demonstrate accountability and value to stakeholders.

Lack of Scalability:

Stewardship often involves tracking multiple metrics across various portfolios. Spreadsheets cannot handle growing datasets efficiently. As data scales, spreadsheets become cumbersome, leading to slower decision-making and reduced effectiveness.

Data Silos:

Spreadsheets trap data in silos. Integrating information from multiple sources requires manual intervention. This disjointed approach makes it difficult to connect ESG, financial, and impact metrics effectively. Fund teams and dedicated stewardship units alike struggle to maintain a comprehensive overview.

Human Error:

Human errors are inevitable when relying on manual data entry. Mistakes in formulas or inputs can have significant consequences. These errors compromise the integrity of stewardship analysis and reporting, especially when fund teams need accuracy for high-stakes decision-making.

Time-Intensive Processes:

Spreadsheets demand significant time for maintenance, updating, and analysis. This time investment detracts from strategic activities, slowing down progress. Dedicated stewardship teams and fund managers often face delays in translating raw data into actionable insights.

The Case for Stewardship Technology:

Technology transforms stewardship by addressing these limitations. It automates processes, enhances data integration, and provides real-time insights. Modern platforms go beyond static data storage to deliver actionable intelligence.

Real-Time Insights:

Unlike spreadsheets, stewardship technology provides real-time updates. Dashboards offer dynamic visualisations, enabling quicker responses to emerging trends and issues.

Data Integration:

Technology integrates diverse data sources seamlessly. ESG metrics, financial data, and impact results can coexist on a single platform. This holistic view empowers teams to make informed decisions, whether they operate within a dedicated stewardship unit or as part of fund management.

Automation:

Automation reduces manual work by streamlining workflows. Tasks like engagement tracking and reporting become effortless, freeing time for value-driven actions. Both stewardship teams and fund managers can focus on driving results rather than processing data.

Customisation:

Stewardship technology adapts to specific organisational needs. Customisable tools ensure alignment with unique goals and processes, driving better outcomes.

How Technology Enhances Stewardship:

By adopting technology, like the Maanch Engagement Tracker, organisations unlock their stewardship potential. Here’s how technology drives improvement:

Transparency

Technology enhances transparency by providing clear, accessible data. Stakeholders can review performance metrics and engagement results without delays.

Engagement Impact

Measuring engagement impact becomes simpler and more accurate. Technology tracks progress against goals, demonstrating accountability and effectiveness. Fund teams and dedicated stewardship units can showcase their value with robust data.

Collaboration

Centralised platforms foster collaboration across teams. Everyone works from the same data, ensuring consistency and alignment. This is especially crucial for organisations where stewardship spans multiple departments.

Scalability

Technology scales with organisational growth. Platforms handle complexity without compromising performance. This scalability supports both focused stewardship teams and integrated fund management approaches.

Choosing the Right Technology Partner:

Selecting the right stewardship platform requires careful consideration. Here are key factors to evaluate:

Ease of Use

The platform should be intuitive, enabling quick adoption by teams without extensive training.

Integration

Ensure the technology integrates with existing systems and data sources. Seamless connections enhance efficiency across stewardship and fund management functions.

Scalability

Choose a platform that grows with your organisation. It should handle increasing data complexity and volume.

Future-Proofing

Look for features that incorporate AI and machine learning. These capabilities provide predictive insights and long-term value.

Trends to Watch

1. AI-Driven Insights: Predictive analytics will enable fund managers to identify ESG risks and opportunities with unprecedented accuracy.
2. Real-Time Regulatory Updates: Platforms will integrate live regulatory feeds to ensure compliance with evolving standards.

For a deeper evaluation, download the Empowering Responsible Investing: A Guide to Maximising Stewardship Technology ROI. 

The Future of Stewardship:

The future of stewardship lies in harnessing advanced technology. AI and machine learning will play pivotal roles. These tools can analyse vast datasets, predict trends, and optimise decision-making. As technology evolves, stewardship will become more data-driven and efficient.

Asset managers, asset owners, wealth managers, and investment advisors can all leverage technology to enhance their stewardship activities. 

• Asset managers can improve engagement tracking, demonstrate tangible outcomes, and streamline ESG reporting. 
• Asset owners can gain greater transparency into the stewardship practices of their fund managers and ensure alignment with long-term objectives. 
• Wealth managers can utilise technology to personalise client portfolios with tailored ESG insights and demonstrate value. 
• Investment advisors can provide more comprehensive and data-driven recommendations, positioning themselves as trusted partners in a rapidly evolving financial ecosystem. 

By leveraging the right tools, these stakeholders can enhance collaboration, drive better outcomes, and differentiate their services in a competitive market.

Firms of all sizes stand to benefit from adopting stewardship technology. 

• Small firms can use technology to punch above their weight by streamlining processes and demonstrating accountability. 
• Medium-sized firms can differentiate themselves by scaling their operations efficiently while enhancing the depth of their engagement activities. 
• Large firms, managing complex portfolios, can leverage advanced tools to integrate diverse data sources, track real-time metrics, and lead the way in innovation. 

Across the board, organisations that embrace technology will set themselves apart by delivering measurable outcomes and maintaining transparency, key differentiators in a competitive landscape.

Conclusion:

Spreadsheets served their purpose but no longer meet the demands of modern stewardship. Their limitations hinder scalability, transparency, and efficiency. Technology provides the tools to overcome these challenges. By adopting stewardship platforms, organisations can unlock greater potential, drive meaningful outcomes, and stay ahead in a data-driven world. Embrace technology today to future-proof your stewardship efforts.