Launching Fiduciary Duty in the 21st Century
The PRI partnered with UNEP FI, UNEP Inquiry and the UN Global Compact to end the debate about ESG and fiduciary duty. Asset managers and advisers have often cited outdated perceptions of fiduciary duty as a reason for not incorporating ESG factors into the investment decision-making process, claiming that looking at non-financial indicators was not consistent with their fiduciary duty.
A new report published as part of this initiative, Fiduciary Duty in the 21st Century, looked at fiduciary duty across eight markets (US, Canada, UK, Germany, Brazil, Australia, Japan and South Africa), and found that fiduciary duty is not an obstacle to asset owner action on ESG factors.
In order to move towards a sustainable financial and economic system, the report recommends that all of the players in the investment process take specific actions in order for ESG to be implemented on a truly global scale.
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