A large part of the fate of the planet rests on a seemingly technical issue - fiduciary duties - the responsibility to manage someone else's money in their best interests. It is a fundamental concept that underwrites our financial system. There is an increasing expectation within society that investments should have positive social or climate impacts. As a result, institutional investors are increasingly at the frontline of the faultline that runs through capital markets — namely, can the financial system address cascading issues of climate change and rising inequality, or will it accelerate them? How can balance our interests now versus our interests tomorrow? As part of the CFA UK's Investing for Tomorrow's Environment conference earlier this month, our CEO Kieron Boyle addresses the question of what the law says about fiduciary duties, how people interpret it and how they behave as a result. Find out more here: https://lnkd.in/e7JXHRY5 #impactinvesting #fiduciaryduties #pensions
Robyn Lovelock
3mo
Interesting work going on in New Zealand on this too https://www.linkedin.com/posts/toitu-tahua-centre-for-sustainable-finance_today-csf-published-the-key-design-recommendations-activity-7214055251086041088-PllZ?utm_source=share&utm_medium=member_android Greg Munford
Strategic Impact advisor and Next Gen specialist
3moI agree completely that this is a fundamental issue. The impact investment market is no longer nascent. At well over $1 trillion it is growing rapidly and standardising in many ways. The perception that it equates to concessionary returns is not a fair assumption. Sure, it can be true but not for all options. Trustees should work toward learning more about it and recognising it is not just an ESG or sustainable mandate. There are so many good courses available now. It is possible to construct a risk adjusted and well diversified portfolio which embeds impact into each asset class.