Susan N Gary, Best Interests in the Long Term: Fiduciary Duties and ESG Integration, 90 University of Colorado Law Review (forthcoming 2018), available at SSRN. What is the time frame of fiduciary duties? In other words, what time horizon should fiduciaries have in mind as they execute their responsibilities? This is an underexamined aspect of fiduciary law, and Professor Susan Gary’s piece, Best Interests in the Long-Term: Fiduciary Duties and ESG Integration, provides a thought-provoking entry point using the lens of socially responsible investing (SRI). Gary argues that if prudent investing evolves to encompass a longer-term understanding of value creation, then consideration of environmental, social, and governance (ESG) factors may become not only possible, but legally required. If this occurs, we may witness a tectonic shift in investor behavior similar to that produced by enshrining modern portfolio theory (MPT) in fiduciary law … (more)
[Alexander Boni-Saenz, JOTWELL, 3 August]
First posted 2018-08-03 11:45:58
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