“ Critical supplement to the PRI (Principles of Responsible Investment) work and takes an important step to further embed environmental, social and governance issues into investment thinking”
“ [The Report] has contributed in a most significant way to the advancement of the debate around responsible corporate behaviour and the role of the investment community and for this you should be congratulated.”
“ Institutional investors who hide behind profit maximisation and the limits supposedly placed by their legal duties as fiduciaries do so at their own peril. There is no legal bar to the integration of ESG considerations into investment decision-making (provided the focus is always on the beneficiaries best interests) and indeed failure to have regard for such considerations where there is a proven link between an ESG consideration and investment value may itself amount to a breach of fiduciary duties by the pension fund trustee or on his behalf by an asset manager.”
Judgment of Mr. Justice Megarry according to Mr. Justice Megarry was misinterpreted by lawyers and the pension fund industry to place unnecessary restrictions on investment powers of pension fund trustees
“ If and, if so to what extent, it was consistent with the fiduciary duties of pension funds and the responsibilities of mutual funds and insurance companies to have regard to environmental, social and governance decisions in making decisions whether to acquire, retain or divest investments.”
The view associated with Friedman and the Chicago school that investment profits must be maximised and ESG considerations rejected as an unlawful breach of fiduciary duties is wrong and is not based on an analysis of case law or legislation.
“ You can either sit with a hood over your head and pretend things won’t change or you can get ready for it.”
Jeff Immelt, CEO, GE.
“ Climate change and its impact on key industries is the greatest challenge facing us in the 21 st century.”
Just about anyone and everyone from Al Gore to Tony Blair to Sir David King, Chief Scientific Adviser to the UK Government and from Arnold Schwarzenegger , the Governor of California, to Gordon Brown and Margaret Beckett.
If my pension fund is wedded to profit maximisation how come my return on investment is so poor?
Do the right thing is consistent with fiduciary duties
LeBoeuf Lamb Worldwide Moscow Riyadh Johannesburg Almaty Beijing Paris Brussels London Albany Boston Hartford New York Washington, D.C. Jacksonville Houston San Francisco Los Angeles Pittsburgh Chicago
QUESTIONS? The sustainability of fiduciary duties