Which group is primarily focused on fiduciary responsibilities in relation to ESG?

Public pension plans have a primary focus on fiduciary responsibilities concerning environmental, social, and governance (ESG) factors. This is largely due to their obligation to act in the best interests of the beneficiaries, which includes a responsibility to consider long-term financial performance. Incorporating ESG factors into their investment decisions aligns with this duty, as there is growing evidence that responsible investing can lead to better long-term outcomes and risk management.

As fiduciaries, public pension plans must ensure that the assets they manage are invested prudently and that they consider all relevant factors that might impact returns. This includes evaluating how companies manage ESG risks and opportunities. By doing so, they aim to protect the financial interests of their members while also promoting sustainable practices in the companies they invest in.

Other groups, such as private equity firms, retail investors, and multinational corporations, may also consider ESG factors, but their primary motivations and responsibilities vary. For instance, private equity firms often focus on maximizing returns within a certain time frame for their investors, while retail investors may lack the resources or mandate to prioritize fiduciary duties in the same way that public pension plans do. Multinational corporations generally focus on their operational impact and stakeholder expectations regarding ESG. Thus, public pension plans stand out in their