October 24, 2024

In the Line of Duty? Institutional Investors’ Responsibilities Regarding Systemic Risks


Significant attention has been paid to how to mobilize trillions of dollars of private capital toward global climate goals. As part of that discussion, a great detail of attention has been paid to the question of whether institutional investors are permitted, and perhaps even required, to address those risks within their fiduciary duty. In the Line of Duty? Institutional Investors’ Responsibilities Regarding Systemic Risks, authored by Fiona Stewart from the World Bank and Harald Walkate of Route 17, addresses this issue. It focuses on two main research questions: “Is it possible to allow, or encourage, institutional investors to engage in systemic risk mitigation interventions with the prevailing definition of fiduciary duty? What can we do to further encourage and support universal owners in addressing the systemic risk of climate and nature loss?”