Why are core labour rights so poorly treated in responsible investment frameworks?

Core labour rights, as defined by the International Labour Organization, cover five principles: freedom of association and effective right to collective bargaining, elimination of all forms of forced or compulsory labour, effective abolition of child labour, elimination of discrimination in respect of employment and occupation and occupational health and safety. There is a sharp contrast …

Mapping key advocacy forums on EU-wide ESG policy

The investment chain Which institutional forums matter when it comes to shaping policy and practices related to ESG and responsible investment in Europe? Mapping out these forums can be based on the “investment chain” that channels money from investors to the real economy. The chain is binding four category of stakeholders It is a circular …

From social clause to policy space: the trade union narrative on the WTO

Abstract Since 1994, the trade union narrative on the WTO has shifted from a single- and pro-active issue – a social clause linking trade liberalisation to core labour standards – to a broader, but more defensive, agenda on preserving governments’ “policy space” at home – containing trade liberalisation to protect public services, industrial policies, access …

Overview of Impact Investing Initiatives

Impact investing is one category of investment practices that sits within a broader spectrum, ranging from traditional and purely financial motivated investment to responsible investment and to philanthropy. One of the distinct feature of impact investing is the duty to demonstrate the “additionality” of the investment. In practice, this often includes a “catalytic function” which …

A reality test for the European definition of sustainable investment

How should a “sustainable” financial investment be defined? The European Responsible Investment Framework, including the 2019 Sustainable Finance Disclosure Regulation (SFDR) and the 2020 Environmental Taxonomy, draws three fundamental principles: This European process, clarifying what constitutes sustainable investment, is obviously welcome. Implementing and interpreting the SFDR has not been easy, however. The concerns are twofold: …

Taking Stock of Shareholder Activism

Shareholder activism, we are told, is on the rise. The number of campaigns, both shareholder value and environmental, social and governance (ESG) oriented, is expected to pick up in the US, while Europe is poised to enter a “golden age” of activism. Shareholder activism emerged in the early 1990ies within the broader movement toward greater …

The ESG Landscape in 2023

In the past year, the responsible investment community has gone through more developments than in the previous 10 years combined. By the end of 2023, we should have a new G20-endorsed global standard on Environmental, Social and Governance (ESG) reporting, more stringent disclosure requirements for both listed equity and asset managers in both the EU …

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