Download 2019 Fiduciary Duty in the 21st Century Final Report:
Published in October 2019, the final installment of the four-year Fiduciary Duty in the 21st Century programme affirms that fiduciary duty requires the incorporation of environmental, social and governance (ESG) issues into investment analysis and decision-making processes.
The final report discusses The origins of fiduciary duty, The new policy context, and Modern fiduciary duty. In addition, the report provides detailed country-specific analysis of current policy and regulatory landscape and recommendations for reform in each leading global economy. Most markets around the world have seen progress on the incorporation of ESG issues into expectations around fiduciary duty - including the EU, UK, Canada and China - with the exception of the U.S.
Investors that fail to incorporate ESG issues are failing their fiduciary duties and are increasingly likely to be subject to legal challenge. While the conceptual debate around whether ESG issues are a requirement of investor duties and obligations is now over, the report identifies several areas where further work is required.
The final report discusses The origins of fiduciary duty, The new policy context, and Modern fiduciary duty. In addition, the report provides detailed country-specific analysis of current policy and regulatory landscape and recommendations for reform in each leading global economy. Most markets around the world have seen progress on the incorporation of ESG issues into expectations around fiduciary duty - including the EU, UK, Canada and China - with the exception of the U.S.
Investors that fail to incorporate ESG issues are failing their fiduciary duties and are increasingly likely to be subject to legal challenge. While the conceptual debate around whether ESG issues are a requirement of investor duties and obligations is now over, the report identifies several areas where further work is required.
Download the original 2015 Fiduciary Duty in the 21st Century:
Fiduciary duties exist to ensure that those who manage other people’s money act in their beneficiaries' interests, rather than serving their own interests. The manner in which fiduciary duty is defined has profound implications.
Published in September 2015, this report concludes that failing to integrate long-term investment value drivers, including ESG issues, in investment practice is a failure of fiduciary duty.
However, despite significant progress, too many investors are not yet considering ESG issues in their investment research and decision-making. Furthermore, even with investors that do accept the argument that they should consider ESG issues in their investment processes, implementation remains variable. The report examines the reasons why investors are not systematically integrating ESG as part of their fiduciary duty and proposes practical actions for institutional investors and policy-makers to address these barriers.
Published in September 2015, this report concludes that failing to integrate long-term investment value drivers, including ESG issues, in investment practice is a failure of fiduciary duty.
However, despite significant progress, too many investors are not yet considering ESG issues in their investment research and decision-making. Furthermore, even with investors that do accept the argument that they should consider ESG issues in their investment processes, implementation remains variable. The report examines the reasons why investors are not systematically integrating ESG as part of their fiduciary duty and proposes practical actions for institutional investors and policy-makers to address these barriers.
Download Fiduciary Duty Country Roadmaps:
The roadmaps set out recommendations to fully embed the consideration of environmental, social and governance factors in the fiduciary duties of investors across eight capital markets.
The roadmaps build on the analysis set out in Fiduciary Duty in the 21st Century published in September 2015 and draws on over 30 interviews in each country with asset owners, investment managers, industry service providers and academics. It provides commentary on recent developments in fiduciary duty and sets out the business case for ESG integration.
The roadmaps address fiduciary training, corporate reporting, asset owner interaction with service providers, legal guidance, the development of investment strategies, ESG disclosure and governance structures. The roadmaps also set out suggestions for institutional investor best-practice.
The roadmaps build on the analysis set out in Fiduciary Duty in the 21st Century published in September 2015 and draws on over 30 interviews in each country with asset owners, investment managers, industry service providers and academics. It provides commentary on recent developments in fiduciary duty and sets out the business case for ESG integration.
The roadmaps address fiduciary training, corporate reporting, asset owner interaction with service providers, legal guidance, the development of investment strategies, ESG disclosure and governance structures. The roadmaps also set out suggestions for institutional investor best-practice.
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Canada (English)
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Germany (English)
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South Africa
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UK
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US
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Ohio
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California
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Download Investor Obligations and Duties in Six Asian Markets:
This report extends the research into fiduciary duties – and, more broadly, investor duties – to six Asian markets: China, Hong Kong SAR, India, Korea, Malaysia and Singapore.
Investor Obligations and Duties in Six Asian Markets (English)
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Investor Obligations and
Duties in Six Asian Markets (Chinese) |
Download Additional Fiduciary Duty Reports:
Aligning investors with sustainable finance: a focus on the OECD
(December 2018) |
Untangling Stakeholders for Broader Impact: ERISA Plans and ESG Incorporation (September 2018)
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Fiduciary Duty in the 21st Century Progress Report (December 2017)
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Fiduciary II: Fiduciary responsibility – Legal and practical aspects of integrating environmental, social and governance issues into institutional investment (2009)
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Download Additional Related Reports:
Financial Performance of ESG Integration in US Investing
(Feb 2018) |
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Aligning values: why corporate pension plans should mirror their sponsors
(Japanese, 2017) |
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Addressing ESG factors under ERISA (2016)
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Partner organisations:
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