A New Era for Socially Responsible Investing and Fiduciary Obligations

// A New Era for Socially Responsible Investing and Fiduciary Obligations

 A New Era for Socially Responsible Investing and Fiduciary Obligations

Socially responsible investing (SRI) is a rapidly growing trend in markets around the world. This sustainable, responsible, impact investing model affords companies the opportunity to ensure that their investments align with their mission and values and also facilitate the global movement towards an environmentally sustainable and socially inclusive economy. SRI models involve ESG (environmental, social and governance) integration, investment screening, shareholder advocacy, sustainably themed investments and impact investing.

Historically, socially responsible investing models were believed to negatively impact performance and consequently were questioned as acceptable standards for acting in “beneficiaries’ best interests”  and fulfilling fiduciary obligations. Over the last 25 years, this notion has been challenged and dismantled with the international movement to develop a sustainable global financial system. A legal analysis conducted in 2005 by Freshfields Bruckhaus Deringer (Freshfields) international law firm concluded that ESG factors in investment decisions is “clearly permissible and is arguably required”. Over time, SRI is becoming widely accepted and more effectively executed. The UN has taken initiative in the globalization of sustainable development through collaboration with UNPRI, UNEP FI and the UN Global Compact.

Read More: “Socially Responsible Investing: What Fiduciary Investment Boards Need to Know

RPG Consultants is not an investment advisory service, and we do not provide personalized financial advice or act as a financial advisor. This content has been prepared solely for general informational purposes. None of the information provided in this website is intended as investment, tax, accounting or legal advice, as an offer or solicitation of an offer to buy or sell, or as an endorsement, recommendation or sponsorship of any security, product, service or investment. The opinions expressed in this article do not constitute investment advice and independent advice should be sought where appropriate. 

2017-06-06T16:31:33+00:00June 6th, 2017|Categories: 401k Resources|Tags: , , , , , , , |Comments Off on  A New Era for Socially Responsible Investing and Fiduciary Obligations