Financial Markets and Socially Responsible Investing

Company Law and Sustainability: Legal Barriers and Opportunities, Beate Sjåfjell and Benjamin J. Richardson (eds), Cambridge University Press, 2015

University of Oslo Faculty of Law Research Paper No. 2015-33

Posted: 22 Sep 2015

Date Written: September 21, 2015

Abstract

The financial sector has a significant presence in the activities of business corporations through equity investments and debt financing. This chapter investigates how the financial sector shapes the environmental performance of corporations and assesses whether the global movement for socially responsible investing (SRI) can promote more environmentally sustainable companies. The chapter investigates five areas of potential SRI influence, including divestment, corporate engagement and codes of conduct. The principal argument is that the financial sector continues to exert a largely negative influence over the environmental performance of the business sector, and presently SRI has only limited remedial influence. SRI will likely only acquire greater significance through a more enabling regulatory and public policy framework set by governments.

Suggested Citation

Richardson, Benjamin J., Financial Markets and Socially Responsible Investing (September 21, 2015). Company Law and Sustainability: Legal Barriers and Opportunities, Beate Sjåfjell and Benjamin J. Richardson (eds), Cambridge University Press, 2015; University of Oslo Faculty of Law Research Paper No. 2015-33. Available at SSRN: https://ssrn.com/abstract=2663333

Benjamin J. Richardson (Contact Author)

University of Tasmania - Faculty of Law ( email )

Private Bag 89
Hobart, Tasmania 7001
Australia

HOME PAGE: http://www.utas.edu.au/law

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