Group

Corporate Governance and ESG

Hedge Funds are often, unfairly, associated with short-term profiteering and speculation. What has become increasingly obvious post-crash is the role hedge funds play (and can play) in global capital markets.

Hedge funds are increasingly considering environmental, social and governance (“ESG”) factors in their investment decision-making, and there is a much broader question as to whose responsibility it is to regulate society’s moral compass.
It does, however, raise a valid point. In the words of Laurence Fletcher of the Financial Times, that point is: “how to do well, from doing good”.

We advise on ESG policies and associated legislation. Increasingly, hedge funds are obliged to publish their policies on engagement with the company’s they invest in (see, for example, the second Shareholder Rights Directive of the EU). Whilst some may consider this burdensome, such considerations have become increasingly important to institutional investors when making allocation decisions.

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