Which of the following statements regarding engagement and stewardship is most accurate?

Engagement (Option B) is a key component of responsible stewardship, with the objective of preserving and enhancing long-term value in investee companies. Investors engage with companies on ESG issues such as climate risk, diversity, and governance to improve performance and reduce long-term risks.

Option A is incorrect because smaller asset owners often rely on collaborative engagement or delegate stewardship activities to investment managers rather than engaging directly.

Option C is incorrect because reactive engagement (triggered by share price declines) is generally less effective than proactive, long-term engagement strategies focused on sustainability improvements.