Fiduciary duties must include ‘sustainability risk’, says EU group
The EU’s special expert group concludes that directors’ fiduciary duties should include managing long-term sustainability risk.
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The fiduciary duties of directors should include a responsibility to manage long-term sustainability risks, according to the interim report from the European Union's High Level Expert Group on Sustainable Finance.
The report also concludes that quarterly reporting is an obstacle to sustainability, while investors have a right to information. The report said the development of integrated reporting and the work of the International Integrated Reporting Council (IIRC) is an "important development" in tackling the conflict.
"The responsibility of directors and investors to manage long-term sustainability risks should be enshrined in their r
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