Legal Framework for Impact: The rationale for investing for sustainability impact

Investors have both a profound responsibility and a huge stake in the maintenance of a sound financial system. International frameworks set out the plan to preserve and enhance those systems but the global investment sector is currently not holding up its end of the deal. The project “A Legal Framework for Impact” is clarifying the legal responsibilities of investors to consider the sustainability impact of their decision-making and explains how policymakers can deliver legal frameworks that support sustainable economies.

A Legal Framework for Impact – Articles

20 April 2022 | Investing for sustainability impact: Changes needed in EU policy framework By Alina Neculae, Senior Policy Analyst, EU, PRI Emerging policies, laws and tools developed by the EU support the pursuit of sustainability impact goals. However, limits remain on investors’ ability to invest or exercise stewardship in alignment with social and environmental…

Blog – Legal Framework for Impact: embedding climate action in financial regulation

By Laxmi Aeshwarya Kumar, Project Specialist, UNEP FI, and Freya Bannochie, Policy Analyst, UK, PRI The COP26 summit in Glasgow has brought the climate crisis sharply into focus. In order to deliver on the Paris Agreement, all factions of industry and society must work together to sufficiently limit global warming to 1.5°C. This year’s COP has…

Major international legal report backs growing institutional investor focus on achieving positive sustainability impacts

New research provides a legal framework for institutional investors internationally as they seek to address key environmental and social sustainability challenges, and sets out the opportunities for policy reform 21 July, LONDON – Freshfields Bruckhaus Deringer (Freshfields) has today released a new report, A Legal Framework for Impact, commissioned by The Generation Foundation, the United…

A Legal Framework for Impact

A legal framework for considering sustainability impact in investor decision making. Discover the report findings which form the basis of a multi-year work programme led by UNEP FI, PRI and The Generation Foundation.

A Legal Framework for Impact – Resources

Publications A Legal Framework for Impact: sustainability impact in investor decision-making The report, authored by Freshfields Bruckhaus Deringer and commissioned by PRI, UNEP FI and The Generation Foundation, provides ground-breaking legal analysis on the extent to which legal frameworks enable investors to consider impact in their activities across 11 jurisdictions: the EU, Australia, Brazil, Canada,…

A Legal Framework for Impact – Frequently Asked Questions

1. In two sentences, what is A Legal Framework for Impact?  It is a project to establish the extent to which legal and regulatory frameworks in 11 jurisdictions enable or encourage investors to consider the sustainability impact of their investments.   In the future, this analysis may serve as a foundation for a new way of…

A Legal Framework for Impact – About

Investors have a fiduciary duty to integrate financially material factors, including environmental, social and governance (ESG) factors. Meanwhile, the Paris Agreement and UN Sustainable Development Goals have ramped up investor awareness about global sustainability challenges. Investors are increasingly considering ‘impact duties’ – such as decarbonisation targets, commitments to quality of life, gender equality or integrating the impact…

Groundbreaking work to assess real-world sustainability impact for investors: A Legal Framework for Impact

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…

A Legal Framework for Impact

A legal framework for the consideration of sustainability impact in investor decision-making Within the next decade, assessing and accounting for the sustainability impact of investment decision-making needs to be a core part of investment activity. Launched in January 2019, the new project, A Legal Framework for Impact, will support this transition. Investors have a fiduciary…

A typology of risks to increase investment in indigenous and community-led landscapes

By Dr Frank Hawkins, IUCN and Steering Committee Member for the Coalition for Private Investment in Conservation (CPIC), and Jessica Smith, Nature Lead at UNEP FI Get involved: answer our questionnaire by September 6th to help us build a common framework for identifying, assessing and managing risks in private financial investments in community-led conservation in…

Stellar Speakers and New Launches at Day 1 of UNEP FI’s Global Roundtable

UNEP FI saw more than 2500 participants join Day 1 of its 16th Global Roundtable, held virtually for the first time ever, under the theme “Financing a Resilient Future”. The stellar line-up of speakers was led by Amina Mohammed, Deputy Secretary General, United Nations, who gave the opening keynote address by reminding participants that sustainable…

BLOG: UNEP FI urges the EU to embed sustainability impact into its Renewed Sustainable Finance Strategy

In July 2020, the European Commission closed its stakeholder consultation on its Renewed Sustainable Finance Strategy, which will be adopted by year-end. The Commission’s proposal recognizes that the scale of investment necessary for a timely, just and sustainable transition goes beyond the capacity of the public sector and needs to include the private sector as…

2019 in review: UNEP FI membership tops 300 as finance sector steps up on sustainable finance

2019 was a year of stellar achievement for UNEP FI and its members. In October, shortly after successful launches at the UN General Assembly in New York, our membership reached a tally of 300 banks, insurers and investors from around the globe. This review of the year provides highlights and we would like to use this opportunity to thank our members, supporting institutions and sponsors for their dedication to promoting sustainable finance and ensuring a more resilient, low-carbon future for all.

The Principles

The UNEP FI Principles for Sustainable Insurance (download PDF): English – français – 日本語 – português – español Our aspiration The insurance industry’s core business is to understand, manage and carry risk. We depend on the trust people place in our industry to fulfil its obligations.Through risk prevention and risk reduction and by sharing risks…

Resources

Explore our publications below: We will add guidance and resources in the form of reports, studies and case studies as we develop our work with our members and other stakeholders. Keep checking back here to see our latest resources. Using the Guidance on Financial Inclusion and Financial Health Target Setting, banks can understand how to align…

New risks, new opportunities: Harnessing environmental pollution liability insurance for a sustainable economy

As risk managers, insurers and investors, there is a clear opportunity for the insurance industry to play a leading role in preventing pollution, reducing greenhouse gas emissions, protecting biodiversity and ecosystems, and supporting the transition to a sustainable economy. This report highlights the findings of a global study on environmental pollution liability insurance led by UNEP FI’s Principles for Sustainable Insurance with support from DB Insurance.

UNEP FI Regional Roundtable for Europe 2021: Highlights

The UNEP FI Regional Roundtable for Europe was held virtually on 10 and 11 November 2021 alongside COP26, and welcomed 600+ attendees and 30+ speakers to help define the role of banking, insurance and investment in shaping ambitious responsible and sustainable strategies to proactively address the challenges and opportunities of a green recovery whilst transitioning…