Call for UK fiduciary duty to include extra-financial factors and engagement
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20 June 2011
The FGRE and CFA Institute have called for actions including:
- For trustees and other investment fund board members, develop an equivalent to Companies Act 2006 Section 172 (1), which requires directors to act in good faith to promote the success of a company for the benefit of its members as a whole, having regard for issues including the impact of the company's operations on the environment.
- Establish a duty regarding engagement on a range of matters, such as corporate strategy, risk management and environmental impacts, in investment strategies and mandates.
- Create standards to ensure effective and constructive engagement, and principles for asset owners to consider when deciding to require engagement by fund managers.
Engagement between investors and public companies: Impediments and their resolution, FGRE and CFA Institute
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