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.
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Fiduciary duty in the 21st century: US roadmap
Produced in collaboration with UNEP FI and Generation Foundation