PRI welcomes UK Law Commission report on fiduciary duty
LONDON, 1 July 2014
The Principles for Responsible Investment (PRI) Initiative today welcomed the UK Law Commission’s Report on the fiduciary duties of investment intermediaries, which found that consideration of environmental, social and governance (ESG) factors by pension fund trustees is entirely consistent with their fiduciary duty to beneficiaries.
“The UK Law Commission’s report provides greater clarity for investors on their ability to consider ESG factors in their decision making where they are, or may become, financially material. For signatories of the PRI, who believe that ESG factors can present material risks to returns over the investment horizons of their beneficiaries, these findings are welcome,” said Helene Winch, Director of Policy and Research, PRI.