Overview
The Commonwealth Climate and Law Initiative (CCLI) is an independent non-profit organisation focused on legal education and stakeholder engagement. They take a multidisciplinary approach, linking laws, scientific research and financial evidence to clarify the legal basis for corporate and investment decision-makers to address climate- and nature-related risks, thereby advancing sustainable governance practices.
CCLI examines the legal duties of directors and trustees worldwide to consider, manage and report on climate change and broader environmental risks, opportunities and impacts. This work is delivered through three core activities: publishing legal opinions; translating complex legal analysis into training and practical guides; and disseminating and socialising insights across stakeholder groups as a trusted, neutral voice.
Their flagship resource, the Global Directors’ Duties Navigator: Climate Risk and Sustainability Disclosures, maps directors’ duties and disclosure obligations in over 30 jurisdictions.
A Legal Framework for Impact (LFI) is the groundbreaking legal analysis published by Freshfields in 2021, commissioned by the Generation Foundation alongside the Principles for Responsible Investment and the United Nations Environment Programme Finance Initiative. This analysis sought to answer, “to what extent are investors permitted or required to pursue impact?” across 11 jurisdictions including the US.
Freshfields found that under existing law many investors’ fiduciary duties require that they consider how they can manage sustainability risks and opportunities through the pursuit of impact in order to protect and improve returns for beneficiaries. In other words, investors should consider how they can invest sustainably.
More work is needed to enhance awareness and implementation of these findings – particularly in the US.
Our partnership with CCLI will build on this foundation by clarifying the legal ground for investors to consider sustainability risks and impacts. Together, we will explore how existing laws already allow - or require - US asset owners and asset managers to consider sustainability factors in investment decision-making.
Read more about CCLI's work on their website: commonwealthclimatelaw.org/