FIDUCIARY DUTY REDEFINED

A report challenging conventional wisdom that fiduciary duty precludes environmental, social, or governance (ESG) considerations in institutional investment decisions was released by the United Nations Environment Programme Finance Initiative (UNEP FI) last October.

The report, entitled A legal framework for the integration of environmental, social and governance issues into institutional investment, was conducted pro bono by Freshfields Bruckhaus Deringer, a London-based global law firm and is available here.

PUBLIC MONEY FOR PUBLIC GOOD

Public pensions, university endowments and foundations invest billions of dollars in assets of corporations whose products and practices are harmful to the public and undermine the long-term interests of their beneficiaries.  

Why should these monies be invested in companies that pollute our environment, exploit sweatshop laborers, push tobacco on our children and loot the savings of our elders? 

It doesn’t have to be this way.  

Public institutions can exercise their shareowner rights to demand accountability from corporations. Public monies can be used to improve communities, promote sustainability and secure the future for generations to come. 

Public monies should be used for public good.