Socially Responsible Investment Law Regulating the Unseen Polluters

by Richardson, Benjamin J

• ISBN13: 9780195333459
• ISBN10: 0195333454
• Format: Hardcover
• Copyright: 2008-06-30
• Publisher: Oxford University Press

Summary

Environmental harm is commonly associated with companies that extract, consume, and pollute our shared natural resources. Rarely are the 'unseen polluters,' the financiers that sponsor and profit from eco-damaging corporations, placed at the forefront of the environmental debate. By focusing on these unseen polluters, Benjamin Richardson provides a comprehensive examination of socially responsible investment (SRI), and offers a guide to possible reform. Richardson proposes that greater regulatory supervision of SRI will help ensure that the financial sector prioritizes ethically-based investments. In Socially Responsible Investment Law, he suggests that new governmental reforms should encourage companies to participate in socially responsible investments by providing a better mix of standards and incentives for SRI through measures that include redefining the fiduciary responsibilities of institutional investors to incorporate environmental concerns. By doing so, Richardson posits that corporate financiers, including banks, hedge funds, and pension plans, will become more accountable to the goals of ensuring sustainable development.

Author Biography

Professor Benjamin J. Richardson specializes in environmental and financial law at Osgoode Hall Law School in Toronto, Canada. His previous publications include Environmental Law for Sustainability (Hart Publishing, 2006) and Environmental Justice and Market Mechanisms (Kluwer, 1999). He is a member of the IUCN Environmental Law Commission and the IUCN Academy of Environmental Law.

Table of Contents

The Potential and Limits of SRI	p. 1
"Unseen Polluters": A Lacuna in Environmental Law	p. 1
SRI: Evolutionary or Revolutionary?	p. 12
SRI Governance Themes	p. 27
Plan of the Book	p. 37
Corporate Financiers and the SRI Movement	p. 43
The Era of Finance Capitalism	p. 43
Corporate Financing	p. 52
Types of Financial Institutions	p. 62
The SRI Movement	p. 73
SRI's Challenges and Impact	p. 103
Business-as-Usual or a Shift to Sustainability?	p. 103
What Has Modern SRI Achieved?	p. 120
Doing Good While Doing Well?	p. 159
Obstacles to SRI: Investment Regulation	p. 187
Introduction	p. 187
Financial Markets Regulation	p. 188
Fiduciary Duties of Institutional Investors	p. 205
Fiduciary Duties of Pension Funds	p. 221
Investment Duties of Other Financiers	p. 234
Participation in Investment Management	p. 246
Conclusions	p. 278
SRI Regulation	p. 281
The Impetus to SRI Governance	p. 281
Regulatory Design for Sustainability Challenges in Financial Markets	p. 287
Informational Mechanisms	p. 303
Financial Incentive Mechanisms	p. 332
Environmental Liability of Financial Sponsors	p. 345
Investment SRI Mandates and Restrictions	p. 358
Conclusions	p. 376
SRI Governance Beyond the State	p. 379
Governing SRI Through Market Forces	p. 379
Normative Frameworks for SRI	p. 394
Process Standards	p. 411
Management Systems	p. 425
Rating Mechanisms	p. 432
Verdict	p. 447
The SRI Agenda: Climate Change and Indigenous Peoples	p. 453
Introduction	p. 453
Protecting Indigenous Peoples Through SRI	p. 456
Finance in a Climate of Change	p. 478
Comparisons	p. 505
The Path to Ethical Investment for Sustainability	p. 509
Renewing the Promise of SRI	p. 509
SRI-Adding Values, Not Just Value	p. 520
Governance Reforms	p. 533
Finale	p. 567
Index	p. 571
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