On 27 November 2019, United Nations Environment Programme Finance Initiative (UNEP FI), the Principles for Responsible Investment (PRI) and The Generation Foundation announced the launch of pioneering research with global law firm Freshfields Bruckhaus Deringer LLP (‘Freshfields’) to analyse whether and how legal frameworks allow for – and incentivise – investors to consider sustainability impact across major markets.
The Paris Agreement and UN Sustainable Development Goals (SDGs) have ramped up investor awareness about global sustainability challenges, with investors increasingly thinking about sustainability impact, such as decarbonisation targets.
The research – A Legal Framework for Impact – will explore existing legal frameworks to analyse the extent to which asset owners can prioritise sustainability impact, including where this may lead to a negative effect on investment return. In the case of investment managers, it will explore how they can or should address sustainability impact where their investment mandate is silent on sustainability impact.
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