The ‘fiduciary straitjacket’ imposed on UK pension funds must be removed to promote sustainable investment, reports a pension research charity. FairPensions has proposed an ‘enlightened fiduciary duty’ in line with the duties required of company directors introduced in 2006, allowing them legally to take into account long-term risks and consider environmental and ethical factors in decision-making. Such a move ‘would provide a valuable nudge towards sustainable long-term investment to overcome narrow interpretations of fiduciary obligation’.
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