Theme · Responsible investment
ESG and Stewardship in Global Securities Lending
Lending and responsible investment are compatible when a programme is designed for it. The main levers are when to recall shares for votes, which collateral to accept, and how transparently the lender reports on both.
Last reviewed 27 October 2026
Voting rights and recall
When securities are on loan, the borrower holds the votes. A lender that wants to vote must recall shares before the record date. Corporate voting calendars differ by country and issuer, and some markets concentrate AGMs in a short season, so lenders set policies in advance: always recall for certain holdings, recall for contentious resolutions, or keep a minimum position unlent.
| Step | Timing | Action |
|---|---|---|
| Meeting notice published | Weeks before meeting | Screen agenda for significant resolutions |
| Recall decision | Before record date, allowing for settlement cycle | Agent sends recall notices to borrowers |
| Record date | Set by issuer | Shares must be back in lender's account |
| Vote cast | Before proxy deadline | Lender votes through its proxy provider |
| Re-lend | After record date | Shares returned to the lendable pool |
Collateral screening
Lenders can apply exclusion lists or ESG criteria to equity collateral, and restrict collateral to particular indices. Triparty agents can automate this screening as part of eligibility schedules, though tighter criteria may reduce borrower demand or fees.
Good practice for programme design
- Write a lending and voting policy that the board or investment committee approves.
- Agree recall service levels with the agent lender and test them during AGM season.
- Decide whether to lend to borrowers that may use securities for activist or empty-voting strategies.
- Report lending volumes, recalls and voting outcomes to stakeholders.