An unresolved issue: the role and responsibility of institutional investors

In this contribution the author analyses the role and responsibility of institutional investors in ESG matters against the background of the content of currently adopted corporate governance codes and stewardship codes in the EU. The findings include that in such codes obligations for institutional investors are basically non-existent and that in as far as duties and obligations are stipulated these are owed to those who have a financial interest in the institutional investors. The author argues that in order to make progress in pushing companies to do more in terms of fighting climate change and further sustainability, these codes should be supplemented by provisions requiring institutional investors to take responsibility for supporting actions of companies serving these goals and report on their actions in this respect.