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A Legal Framework for Impact

A Legal Framework for Impact

Year Published

2021

Contributing Organizations

Freshfields Bruckhaus Deringer
Generation Foundation
Principles for Responsible Investment (PRI)
United Nations Environment Programme Finance Initiative (UNEP-FI)

Type of Resource

Research/Insights Report

Languages

English

Relevant Topics

Core Topic
Climate Policy & Policy Engagement
Topic 2
Impact Assessment

Target Audience

Governments & Policymakers
Asset Managers
Real Economy Corporates

Relevant Geography

Global
A Legal Framework for Impact

Resource Description

This summary report presents findings from an analysis of whether and how legal frameworks in 11 jurisdictions permit or require investors to consider sustainability impact. It explores how regulators view “investing for sustainability impact” through investment powers, stewardship, and policy engagement.

Why This Matters

This resource helps investors and policymakers understand how legal systems shape the ability to invest for sustainability impact and where reform is needed to align finance with global sustainability goals.

Key Insights

  • Defines investing for sustainability impact as using investment tools to achieve positive, assessable sustainability outcomes alongside financial returns
  • Finds that while impact investing is rarely prohibited, few jurisdictions clearly support it as a core objective
  • Notes most legal systems allow consideration of impact when financially material, but few require or encourage it
  • Recommends reforms to clarify investor duties, enhance stewardship, and support policy engagement

Secondary File Resources

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