The Principles for Responsible Investment (PRI), The United Nations Environment Program Finance Initiative (UNEP FI) and The Generation Foundation, have published US and UK roadmaps, which set out recommendations to fully embed the consideration of environmental, social and governance (ESG) factors in the fiduciary duties of investors in the US and UK capital markets.

The PRI said the roadmaps build on the analysis set out in Fiduciary Duty in the 21st Century published in September 2015 and draws on over 30 interviews in the US and 30 interviews in the UK with asset owners, investment managers, industry service providers and academics. It provides commentary on recent developments in fiduciary duty and sets out the business case for ESG integration.

The roadmap addresses fiduciary training, corporate reporting, asset owner interaction with service providers, legal guidance, the development of investment strategies, ESG disclosure and governance structures. The roadmap also sets out suggestions for institutional investor best-practice in the US and UK markets.

More PRI roadmaps in the pipeline

The PRI said it will publish roadmaps in 8 markets: Australia, Brazil, Canada, Germany, Japan and South Africa, as well as US and UK. Additionally, the analysis of Fiduciary Duty in the 21^st Century has been extended to six Asian markets (China, Hong Kong, India, Korea, Malaysia and Singapore).

The objectives of the roadmaps are in line with the Global Statement on Investor Obligations and Duties the PRI said and it is encourage all its signatories to lend it their support and sign the statement. It is hoped that the statement will give governments the confidence to act, providing international and national clarity on the extent to which ESG factors should be incorporated into investment decision making. So far it has been supported by over 60 investors the PRI said.

The PRI initiative is an international network of investors working together to put the six Principles for Responsible Investment into practice.

Its goal is to understand the implications of sustainability for investors and support signatories to incorporate these issues into their investment decision making and ownership practices and ultimately to contribute to the development of a more sustainable global financial system.