The Public Fiduciary: Emerging Themes in Canadian Fiduciary Law for Pension Trustees

Waitzer, Edward J.; Sarro, Douglas

doi:10.2139/ssrn.2222836

Cited by 9 publications

(6 citation statements)

References 23 publications

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“…Finally, from a managerial point of view, we suggest that fossil fuel divestment is in line with fiduciary duty (Richardson, 2011(Richardson, , 2013Waitzer & Sarro, 2012). Based on our results, we conclude that fossil fuel divestment can be conducted without harming financial returns and the ethical divestment strategy contributes to higher financial returns according to the results of the four-factor model (Carhart, 1997).…”

Section: Discussionsupporting

confidence: 56%

“…With regard to the effects of different divestment strategies on the carbon intensity of portfolios, we conclude that stricter divestment strategies, excluding more fossil fuel stocks, results in higher risk-adjusted returns and lower carbon intensity than divestment approaches excluding less stocks. Furthermore, we conclude that the correlation between the carbon exposure of the portfolio and the risk-adjusted financial return demonstrates that divestment can be in line with fiduciary duty (Waitzer & Sarro, 2012), an aspect that is important for institutional investors. Finally, we contribute to theory by broadening the discussion about the financial performance of sin stocks through the inclusion of fossil fuel stocks.…”

Section: Introductionmentioning

confidence: 66%

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Fossil Fuel Divestment Strategies: Financial and Carbon-Related Consequences

Hunt

Weber

2018

Organization & Environment

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Fossil fuel divestment is discussed controversially with regard to its financial consequences and its effect on decarbonizing the economy. Theory and empirical studies suggest arguments for both, financial underperformance and outperformance of divestment. Therefore, our first research objective is to understand the financial effect of divestment. The second objective is to analyze the influence of divestment strategies on the carbon intensity of portfolios.Empirically, our analysis is based on the Canadian stock index TSX 260 for the time between 2011 and 2015. The results of the study suggest higher risk-adjusted returns and lower carbon intensity of the divestment strategies compared to the benchmark. We conclude that divestment is not only an ethical investment approach, but that it is able to address financial risks caused by climate change and, at the same time, is able to reduce the carbon exposure of investment portfolios.

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Section: Discussionsupporting

confidence: 56%

Section: Introductionmentioning

confidence: 66%

Fossil Fuel Divestment Strategies: Financial and Carbon-Related Consequences

Hunt

Weber

2018

Organization & Environment

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“…Sixth, fiduciary duty (Richardson, 2013;Waitzer & Sarro, 2012), an important regulation for institutional investing, has to be broadened. Currently, and despite the 2005 published Freshfields Report, many asset managers still regard fiduciary duty as a concept for only addressing financial returns for beneficiaries.…”

Section: Discussionmentioning

confidence: 99%

Finance and Management for the Anthropocene

Shrivastava

Zsolnai

Wasieleski

et al. 2019

Organization & Environment

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The Anthropocene era is characterized by a pronounced negative impact of human and social activities on natural ecosystems. To the extent finance, economics and management underlie human social activities, we need to reassess these fields and their role in achieving global sustainability. This article briefly presents the scientific evidence on accelerating impacts of human activities on nature, which have resulted in breach of planetary boundaries and onset of global climate change. It offers some potential leverage points for change toward sustainability stewardship by highlighting the important role of finance and economics in addressing climate change. We examine the role of financial stakeholders in addressing planetary boundaries and offer a modified stakeholder theory, from which we propose future directions for finance in the Anthropocene.

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“…Third (and undoubtedly impacted by observed trustee behavior), courts were reluctant to view many investments, other than government bonds and collateralized investments, as prudent (Waitzer and Sarro [2012]). The 1959 Restatement (Second) of Trusts echoed this view, essentially placing potential investments in three categories.…”

Section: The Prudent Man Is Dead Long Live the Prudent Person!mentioning

confidence: 99%