Could Fiduciary Standards Be Lowered to Encourage ESG?
Groom Law says the strong push in international bodies such as the European Commission and OECD to encourage pensions to take into account environmental, social, ethical and governance (ESG) factors could spill over to the United States.
A recent issue of the Groom Law Group’s Benefits Brief notes a growing pressure on international pension funds to take ESG factors into account in their investing and to report on their use of such factors. (The ESG concept is generally similar to that of socially responsible investing.)
Most recently, it notes, at the December meeting of the OECD WPPP, a new paper supporting the enhanced use of ESG factors, “Investment Governance and the Integration of ESG Factors,” was presented that generally questions: