Generational trusts, generational values: aligning investments for a sustainable future with the law

Abstract The article examines responsible investing within trust law. It considers balancing fiduciary duties with the wishes and views of beneficiaries, examining the legal frameworks in the United States and England and Wales, as well as ongoing law reform. The article highlights the distinction between responsible investing approaches that aim to enhance financial performance and mitigate the risk of material nonfinancial factors on risk-adjusted returns, versus those concerned with the investments’ impact on the environment and society. The authors advocate law reform to provide trustees with clarity and to outline challenges to responsible investing and proactive strategies. The article argues that, by embracing responsible investing approaches effectively, trustees can not only help wealth- and business-owning families grow and build resilience, but also contribute to a more sustainable future.