The US roadmap makes recommendations in seven categories: investor education, corporate reporting, investment consultants, legal advice, stewardship, organizational process and disclosure and ERISA plan governance.
- Trustee boards should ensure capacity and competence on ESG issues. This should be industry-led.
- The Securities and Exchange Commission (SEC) should update Regulation S-K to ensure high quality disclosure of ESG factors.
- NASDAQ and NYSE should provide ESG reporting guidance for issuers.
- Industry stakeholders should build on existing guidance to plan fiduciaries and trustees on the integration of ESG factors into investment consultant services.
- Lawyers should ensure their institutional investor clients understand the legal risk arising from a lack of prudent management of ESG factors.
Stewardship and Engagement
- The Department of Labor should withdraw the Shareholder Right’s Bulletin.
- The SEC should provide updated guidance on collaborative engagement between shareholders.
- The SEC should introduce universal proxy ballots.
Organisational process and disclosure
- Institutional investors should work with advisors and consultants to produce best-in-class investment policy statements.
- The Department of Labor should request disclosure of the extent to which pension plans incorporate long-term value drivers into investment decisions and relationships with service providers.
ERISA plan governance
- The Department of Labor should conduct an industry study of the governance structures of corporate pension plans.
Produced in collaboration with UNEP FI and Generation Foundation
Fiduciary duty in the 21st century: US roadmapPDF, Size 1.15 mb