Fiduciary Relationships for Socially Responsible Investing: A Multinational Perspective

摘要

Socially responsible investing (SRI) is a common practice among financial institutions, but it remains unclear whether such institutions can practice SRI if it fulfills the will of their beneficiaries. Addressing both the legal and practical dimensions of this question, this article aims to resolve a relatively neglected aspect of fiduciary finance law. While there has been a longstanding public debate in the United States and other countries regarding the legality of SRI, it has not thoroughly examined all the relevant issues. The public debate has focused on the financial materiality of environmental, social, and governance (ESG) issues to investment performance as a legal justification for SRI.1 However, little analysis has been dedicated to what weight should be attached to the views of beneficiaries in this regard.