27 September 2023 | LFI Japan: Insights from signatories and stakeholders

Following the recent publication of A Legal Framework for Impact (LFI) Japan: Integrating sustainability goals across the investment industry  (the LFI Japan report), we are pleased to share key insights and themes from two related events: a webinar and round-table on how to integrate sustainability outcomes across the Japanese financial market. Keep reading.

25 April 2023 | Legal Framework for Impact: Briefing for policy makers 

Financial investments drive real-world outcomes on issues such as climate change, sustainable development and human rights – whether the impacts are intended or not. Investors increasingly recognise that financial returns depend on the stability of social and environmental systems, especially in the long term. This is driving investors to increasingly focus on what they can do to improve sustainability outcomes and contribute to global and national sustainability goals. Keep reading

27 April 2023 | As legal frameworks to protect ocean and biodiversity increase, what can investors do?

By Laxmi Aeshwarya Kumar, Project Specialist, UNEP FI and Dennis Fritsch, Associate Nature Lead, UNEP FI – Last month, after more than 10 years of negotiations, UN delegates reached an historic agreement  concerning the protection of marine biodiversity in international waters, an area covering almost half of the Earth’s surface and 95% of the planet’s habitat by volume. The new legal framework, also referred to as the ‘High Seas Treaty’, will be the first of its kind and a significant milestone for the protection and legal management of waters and marine organisms that lie beyond any jurisdictional confines – a common heritage of humankind. Keep reading

27 April 2023 | Pension funds need to consider beneficiaries’ sustainability preferences more – here’s why the IORP II consultation matters

By Alina Neculae, Senior Policy Analyst, EU and France, PRI – The European Insurance and Occupational Pensions Authority (EIOPA) consultation on the review of the Institutions for Occupational Retirement Provision (IORP) II Directive closes next month, on the 25 May. What’s at stake here is significant – how to take account of preferences to invest sustainably, and how the law, and the overall policy landscape, can improve. Keep reading.

14 September 2022 | The human right to a healthy environment provides a strong mandate to investors

By Louisa Guy, Policy Analyst, PRI – The UN has declared access to a clean, healthy, and sustainable environment a human right. Whilst this declaration is not legally binding, it signals a further shift in the landscape towards mainstreaming investors’ pursuit of positive sustainability impacts. Keep reading.

5 September 2022 | Solvency II has some new sustainability impact requirements and they matter for insurers

By Alina Neculae, Senior Policy Analyst, EU, PRI – As of 2 August 2022, insurance and reinsurance companies in the European Union are required to take into account the potential long-term impact of their investment strategy and decisions on sustainability factors, as part of the prudent person principle (PPP). The PPP sets out the rules and principles that (re)insurers should follow when carrying out investment activities. This boils down to an expectation for investors to make rational and reasonable decisions when making investment choices on behalf of policyholders and insured persons. Keep reading.

29 August 2022 | Legal Framework for Impact: One Year On

July this year marked one year since the publication of ground-breaking legal analysis that is supporting investors as they advance their practice towards investing for sustainability impact. A Legal Framework for Impact (LFI), a report authored by Freshfields Bruckhaus Deringer and commissioned by the Principles for Responsible Investment (PRI), the Generation Foundation and the United Nations Environment Programme Finance Initiative (UNEP FI) has paved the way for a programme of work which is helping investors engage with policymakers to transform global financial systems. Keep reading.

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 goals, except where their actions are financially beneficial. Moreover, investors might not be aware that the pursuit of sustainability impact goals is permitted, in some cases required, and is aligned with their fiduciary duties. Keep reading.

7 April 2022 | Reflecting on the discussion: Investing for sustainability impact in the UK

The ground-breaking report, A Legal Framework for Impact, set out to clarify how regulators in eleven jurisdictions view investing for sustainability impact. The goal was to provide concrete support for impact investors in these markets. Building on this work, the PRI hosted a webinar focusing on UK-specific findings of the report, which was commissioned by The Generation Foundation, the PRI and the UN Environment Programme Finance Initiative. Keep reading.

7 April 2022 | Reflecting on the discussion: Investing for sustainability impact in Japan

In the wake of the Japanese translation of A Legal Framework for Impact, the Japan policy team of the Principles for Responsible Investment (PRI) held a webinar in which speakers shared unique perspectives on the legal analysis it contains. Four speakers representing Kanagawa International Law Office, the Financial Services Agency, Dai-ichi Life Insurance Company and the PRI spoke at the webinar. Keep reading.

29 March 2022 | 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. That stability relies upon the health of our environmental and social systems – which are currently under threat. International frameworks like the Sustainable Development Goals and the Paris Agreement 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. We explain how our joint project is clarifying the legal responsibilities of investors to consider the sustainability impact of their decision-making and provide examples from jurisdictions around the world. Keep reading.

17 December 2021 | 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 seen a marked focus on the financial sector, with stakeholders from both the public and the private realms of finance joining the discussion. Access the full article.

29 October 2021 | Does the law support investing for sustainability impact?

By Juliane Hilf, Timothy Wilkins and David Rouch, Partners, Freshfields Bruckhaus Deringer – Following the IPCC’s ‘code red’ report, COP26 marks a crucial moment in governmental attempts to tackle climate change. In this article, we explain how our research is helping to advance legal and policy thinking around two of the UN climate summit’s four pillars – ‘mobilizing finance’ and ‘collaboration’. Access the full article.