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Articles tagged “fiduciary duty”

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The Proxy Gap: How U.S. Public Pensions Are Failing to Vote on Climate Risk
The Insight

The Proxy Gap: How U.S. Public Pensions Are Failing to Vote on Climate Risk

A 2026 report from the Center for Climate-Aligned Finance reveals a critical oversight in U.S. financial risk management. An analysis of 25 major public pension funds shows that most supported fewer than half of climate-related shareholder proposals from 2023-2025. This underutilization of proxy voting—a key tool for investors—suggests a systemic failure to align fiduciary duty with long-term climate risk. The findings expose a disconnect between the recognized financial threat of climate change and the actionable governance strategies deployed by the stewards of public retirement assets, raising urgent questions about financial resilience and fiduciary responsibility.

proxy votingpublic pension fundsclimate risk
Beyond the Hype: How the PRI''s AI Governance Framework Reshapes Investor Due Diligence
Esg Assets

Beyond the Hype: How the PRI''s AI Governance Framework Reshapes Investor Due Diligence

The Principles for Responsible Investment (PRI) has released a pivotal report providing investors with a structured, four-step framework to engage with companies on artificial intelligence (AI) governance. This guidance, anchored in the OECD AI Principles and UN Guiding Principles on Business and Human Rights, signals a critical shift. It moves AI from a pure technology risk to a core component of corporate governance and fiduciary duty. This article analyzes the hidden logic behind the framework: its role in standardizing a nascent market for AI governance assessments, its potential to create a new class of ''AI governance laggards,'' and how it fundamentally redefines the materiality of ethical AI for long-term portfolio value.

ai governanceresponsible investmentpri
The Silent Power: How Index Funds'' Massive Stakes in Big Tech Create a New Human Rights Dilemma
Esg Assets

The Silent Power: How Index Funds'' Massive Stakes in Big Tech Create a New Human Rights Dilemma

The three largest index fund managers collectively hold about 20% of the ''Magnificent Seven'' tech giants—Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla. This unprecedented concentration of passive capital creates a profound governance paradox. While index investors are designed to be passive, their sheer ownership scale makes them de facto controlling stakeholders in the companies shaping AI, data privacy, and global digital infrastructure. This article explores the emerging debate: do these fiduciary giants have a responsibility to actively engage on human rights issues in technology and AI development, or does their passive mandate absolve them? We examine the hidden power dynamics, the tension between financial returns and ethical stewardship, and the potential for a new era of ''stewardship capitalism'' driven by the world''s largest asset pools.

index fundspassive investingbig tech
Beyond Net-Zero Pledges: How Standard Life Aberdeen''s Targeted Climate Strategy Is Reshaping High-Emitting Industries
Esg Assets

Beyond Net-Zero Pledges: How Standard Life Aberdeen''s Targeted Climate Strategy Is Reshaping High-Emitting Industries

In 2020, asset manager Standard Life Aberdeen set a bold 2050 net-zero portfolio target, complemented by aggressive 2030 interim goals for high-emitting sectors. This case study reveals that this precise, sector-specific target-setting proved more effective than generic commitments in driving corporate action. By 2023, the strategy yielded significant results: 90% of its oil & gas assets and 70% of utilities assets were covered by companies with science-based targets or transition plans. The article analyzes the underlying economic logic of using investment capital as a lever for systemic change, examines the ''ripple effect'' on supply chains, and questions whether this model represents a new standard for fiduciary duty in the climate era.

climate targetsnet zero portfoliostandard life aberdeen