Fiduciary Responsibility and Investment Policy Statements for Socially Responsible/ESG/Impact Investors

Kim Kamin, Chief Wealth Strategist at Gresham Partners, LLC, joined Suzanne Shier of the Northern Trust to present on fiduciary duty with respect to ESG integration and socially responsible investing.

Discussion included: When is it appropriate to incorporate non-financial information in the investment decision-making process? Under what circumstances can considerations other than financial return be included? Is special language recommended in governing documents? Debates about whether and how SRI and ESG are compatible with a fiduciary’s responsibilities are not new. Recent improvements in the coverage and quality of ESG data, along with new academic research and longer performance records of SRI and ESG strategies, have shifted the conclusions that some fiduciaries and their legal advisors are making. In October 2015, the Department of Labor issued new guidance on fiduciary duty for ERISA plans, replacing 2008 guidance that was widely interpreted as having a chilling effect on the inclusion of SRI and ESG investment strategies. What does this new guidance say, and how are pension plan trustees and other asset owners responding?

The program took place at William Blair & Company, Chicago, IL.

If you would like additional information, please contact Kim Kamin at kkamin@greshampartners.com, or at 312-960-0200.