Between stakeholders and shareholders: Pension funds and labour solidarity in the age of sustainability

This article investigates the contribution of pension funds in harnessing power finance to achieve social and environmental objectives. After reviewing discussing potential main hurdles fund engagement Socially Responsible Investment (SRI), common law approach shareholder activism is contrasted with EU on sustainability-related disclosures taxonomies. Unlike US other jurisdictions, where duties regarding retirement institutions are derived from trust law, rules governance investment policies generally grounded more relaxed corporate financial law. On one hand, this makes it easier for consider impact environmental, factors (ESG) decisions. other, concerns functionalised economic purposes, thus reducing possibilities a critical strategical use funds’ by activists. also explains why, despite being often participated trade unions, existing Europe tends outsource management operators. While takes responsibility away governing boards terms their legal duties, combination decentralisation outsourcing undermines possibility unions engage activism, strike balance between position workers as stakeholders shareholders.