The PRI, The Generation Foundation and UNEP FI have launched a series of roadmaps as part of the Fiduciary Duty in the 21st Century initiative. The publications are the culmination of extensive consultation with regulators, investors, policy makers and attorneys across the countries. They make a series of recommendations to enable the market-wide adoption of Environmental, Social and Governance (ESG) integration.
Environmental, Social and Governance issues are critical to the South African economy and society, with ESG-related corporate failures prompting the country’s leaders to take action, including more investment in sustainable energy as part of the government’s National Development Plan. The National Treasury has also convened a Sustainable Finance Working Group to ensure that sustainability themes are reflected in national legislation and regulation.
The roadmap makes recommendations to ensure South African institutional investors understand that their fiduciary duties require them to consider material ESG issues in their investment processes and decision making. This builds on South Africa’s long-history of pro-ESG initiatives, most notably in the form of Regulation 28, the Code for Responsible Investing in SA, and the pioneering work of the Johannesburg Stock Exchange in its support of integrated reporting by listed companies.
To download the publication click here.
For more information about the Fiduciary Duty project please visit www.fiduciaryduty21.org.