The US is the world’s largest capital market, and American investors are increasingly focused on long-term investment approaches that require the inclusion of environmental, social and governance (ESG) factors.
The revised Shareholder Rights Directive (2007/36/EC) recognises that shareholders often exert short-term pressure on investee companies, at the expense of longer term value creation and ESG issues.
The PRI is pleased to present two legal perspectives on integrating environmental, social and governance (ESG) issues into investment decision-making under the Employee Retirement Income Security Act (ERISA) guidelines.
This paper takes stock of institutional investor experience with mobilising green capital for green investment and mainstreaming green factors across asset classes.
The revised Institutions for Occupational Retirement Provision (IORP II) Directive entered the Official Journal of the European Union on 14 December 2016.
The French Energy Transition for Green Growth Law (or Energy Transition Law), adopted in August 2015, marks a turning point in carbon reporting.
|Australia||2016||Senator Fraser – Fraser review||The PRI recommends competence and professionalism on ESG integration is a core element of any ensuing code|
|Brazil||2016||BOVESPA – Corporate Governance Review||The PRI recommends BOVESPA strengthen the governance requirements of the Novo Mercado|
|Brazil||2016||The Association of Capital Market Investors (AMEC) – Stewardship Code Consultation||The PRI recommends AMEC establish a stewardship culture in Brazil|
|Canada||2017||Canada Department of Finance – Potential measures to support a strong and growing economy||The PRI recommends the department pays more attention to the incorporaion of ESG issues across its policy programme|
|Canada||2017||Ontario Securities Commission – 2017 - 2018 Draft statement of priorities||The PRI recommends ESG disclosure to enhance the framework for corporate reporting|
|Canada||2017||Canadian Securities Administrators (CSA) – Climate Disclosure Review||The PRI recommends the CSA endorse the FSB TCFD|
|Canada||2017||Government of Alberta – Alberta Business Corporations Act (ABCA)||The PRI recommends the government extend the right to file shareholder proposals|
|European Commission||2017||Financial Stability, Financial Services and Capital Markets Union (FISMA) – Mid-term review of the Capital Markets Union||The PRI welcomes the Commission’s commitment to sustainable finance|
|European Commission||2016||Financial Stability, Financial Services and Capital Markets Union (FISMA) – Revision of the Institutions for Occupational Retirement Provision Directive||The PRI supports implementation of ESG disclosure requirements for occupational pension funds|
|European Commission||2016||Justice – Analysis the state of the market for long-term, sustainable investment across the EU||The PRI recommends that the European Commission develop and publish an action plan to remove barriers to long-term, sustainable investment|
|European Commission||2016||ECON Committee – Corporate tax disclosure||The PRI recommends the Commission adopt the recommendations of the PRI’s corporate tax working group|
|Germany||2016||Regierungskommission – Deutscher Corporate Governance Kodex (German Corporate Governance Code)||The PRI recommends clear terminology and improvements in ESG disclosure|
|Hong Kong||2015||Securities and Futures Commission (SFC) – Principles of Responsible Ownership||The PRI supports the introduction of the Principles|
|Japan||2017||Tokyo Stock Exchange – English language survey||The PRI recommends Japan Stock Exchange Group develop an ESG reporting guide for issuers|
|Japan||2015||Financial Services Agency (FSA) – Corporate Governance Code||The PRI supports the introduction of the corporate governance code|
|N/A||2017||FSB – TCFD: Phase 2 consultation||The PRI supports the development of internationally-relevant climate disclosure advice to help investors take action.|
|N/A||2016||UNFCCC – Roadmap for global climate action||The PRI supports the role of “high-level champions” for climate action|
|Singapore||2016||Singapore Stock Exchange – Consultation on sustainability reporting||The PRI recommends ESG disclosure is included in annual reports|
|South Africa||2016||Institute of Directors South Africa – Revision of the King Code||The PRI recommends the IoD strengthen corporate governance requirements|
|South Africa||2016||Institute of Directors South Africa – Consultation on King Code sector supplements: Retirement funds||The PRI recommends clarification of fiduciary duty, ESG and good pension fund governance|
|UK||2018||Financial Reporting Council (FRC) – UK Corporate Governance Code Consultation||The central recommendation of the PRI’s response is that the FRC should pay more attention to ESG issues throughout the UK Corporate Governance and the UK Stewardship Code|
|UK||2018||Competitions Market Authority – Investment consultants market investigation||The PRI believes that failing to adequately consider ESG issues in investment advice impacts service quality, product choice and product innovation|
|UK||2018||Financial Stability, Financial Services and Capital Markets Union (FISMA) – EU consultation on Investor Duties||The PRI welcomes the opportunity to comment on the EU’s public consultation on investors and asset managers’ duties regarding sustainability|
|UK||2018||UK Parliament Environment Audit Committee – Green Finance Inquiry||Recommendations for how greening financial flows could help deliver the UK Clean Growth Strategy|
|UK||2018||UK Parliament Work and Pensions Committee – Response to work and pensions committee inquiry on “defined ambition” pension proposals||The PRI welcomes the opportunity to contribute evidence for consideration in the government’s proposed formulation of Collective Defined Contribution (CDC) pension funds|
|UK||2017||Financial Reporting Council (FRC) – Consultation on Non-Financial Reporting Guidance||The PRI recommends the FRC endorse the FSB TCFD recommendations and integrate the TCFD recommendations into the guidance on the strategic report|
|UK||2017||Financial Conduct Authority (FCA) – (1) Consultation on the interim findings of the asset management market study||The PRI recomends the FCA pay substantially more attention to Authorised Fund Manager incorporation of ESG issues|
|UK||2017||Department for Business, Energy and Industrial Strategy (BEIS) – Corporate Governance Reform Green Paper||The PRI recommends the government strengthen the employee, customer and wider stakeholder voice|
|UK||2017||Law Commission – Defined contribution pension funds and social investment||The PRI recommends guidance on ‘serious financial detriment’|
|UK||2016||The Pensions Regulator (TPR) – 21st Century Trusteeship and Governance||The PRI recommends TPR promote better governance of ESG risks and opportunities|
|UK||2016||Department for Business, Innovation and Skills – Non-Financial Reporting Consultation||The PRI recommends the government recognise material non-financial disclosures in line with financial information.|
|UK||2016||Minister for Women – Gender pay gap reporting||The PRI recommends greater transparency on workplace gender equality|
|UK||2015||Department for Work and Pensions – Investment Regulations||The PRI recommends the DWP clarify ESG requirements of pension funds|
|US||2016||Department of Labor – EBSA RIN 1210-AB63: Annual Reporting and Disclosure||The PRI recommends the department improve governance and transparency of employee benefit plans, including disclosure of ESG factors|
|US||2016||Securities and Exchange Commission (SEC) – Business and Finance Disclosure Requirements in Regulation S-K||The PRI recommends the SEC improve corporate ESG disclosure requirements|
|US||2016||House Committee on Financial Services – H.R. 5311||The PRI recommends the bill is withdrawn|
|US||2017||Financial Accounting Standards Board – Proposed Accounting Standards Update to Income Taxes (topic 740)||The PRI supports FASB’s proposed disclosure of disaggregated information on taxes and encourages consideration of additional reporting requirements that would enhance tax transparency.|
|US||2017||House Committee on Financial Services – Financial Choice Act Rule 14a-8||The PRI recommends the act is withdrawn|
|US||2017||House Committee on Financial Services – H.R.4015 - Corporate Governance Reform and Transparency Act of 2017||The PRI strongly opposes this bill|
|US||2018||Chicago Treasurer Summers - Legislation to amend the City Treasurer’s Office’s investment policy to allow for the integration of ESG factors into investment decision making and ownership practices||The PRI strongly supports the legislation|
|US||2018||Senate Banking Committee – S.2155, Economic Growth, Regulatory Relief and Consumer Protection Act||The PRI strongly opposes the inclusion of S. 2155, the Economic Growth, Regulatory Relief and Consumer Protection Act.|