A new report has tackled the issue of fiduciary responsibility and the tangle of trust law head on.
At issue is what should be expected from someone who invests on your behalf. Should they only pay attention to hard financial analysis – or can they look at social, environmental and governance issues too?
The report finds that not only that they can they do so, but that generally they have a duty in law to do so. This is a really important finding.
But what is not so clear is what trustees should do if they find that, having taken everything into account, they would still make money from an investment that had profound adverse environmental or social consequences.