Global Trustee and Fiduciary Services News and Views Issue 50

Global Trustee and Fiduciary Services News & Views | Issue 50 | 2018 23 Against this backdrop, something which might previously have been considered “niche” has been creating a buzz in the industry. Historically fraught with challenges, such as definitional issues, sustainable investment may become easier in the future, thanks to legislative proposals published by the European Commission (Commission). On 24 May 2018, the Commission followed up its CMU Sustainability Action Plan with its first legislative proposals. 2, 3 The Commission’s aim INVESTING WITH A SOCIAL CONSCIENCE — THERE IS NO PLANET B In adopting the 2030 Agenda for Sustainable Development, world leaders resolved to free humanity from poverty, secure a healthy planet for future generations, and build peaceful, inclusive societies as a foundation for ensuring lives of dignity for all. 1 is to make it easier and less costly for investors to identify which investments are sustainable. The proposals put environmental, social and governance (ESG) risks at the heart of the investment process. The new legal framework The proposals look to redirect capital flows towards sustainable investment.