Institutional investors incorporate environmental, social and governance (ESG) factors into their investment strategies in order to become more active in exercising their ownership rights in investee companies. As a corporate governance mechanism, active ownership can be used to improve companies’ ESG performance and transparency and to hold management accountable for its long-term financial performance and impact on society. Successful active ownership can reduce the external risks of ESG factors, unlock hidden company market value, and enhance long-term financial returns.