The report points out that there is increasing evidence of the link between ESG factors and financial performance and on this basis, ‘integrating ESG considerations into investment analysis so as to more reliably predict financial performance is clearly permissible and is arguably required in all jurisdictions’. The conclusions have been welcomed by NGOs campaigning for a wider understanding of institutional investor responsibilities than simple financial return. In addition, the report emphasises that the process of decision-making undertaken by trustees is fundamental. So long as they take account of the available information, the weight they give to each issue is at their discretion. The study looks at the legal situation in France, Germany, Italy, Japan, Spain, the UK and the USA.

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