Sustainable Investment Law—How to Legally Implement Sustainable Standards

Abstract

This chapter will give an overview of the legal possibilities to implement sustainable standards through investments and to promote a global investment turnaround. Conscious investors willing to address the world’s most critical problems will obtain insight into the basic legal structure of sustainable investments and find concrete solutions on how to make an impact. The first part will deal with rather passive investment opportunities, such as investments in mutual funds. A particular focus will be made on the illustration of several regulations of the European Union, which facilitate social/ethical investments throughout Europe. Information on legal aspects of investments in ecologically and/or socially active cooperatives and some remarks on crowdfunding will be made. The second part of the chapter will cover cases, where the investor assumes a rather active role along with her investment. One section will be dedicated to start-up investments. Practical advice will be given on how to make sure that the intended social and/or ecological investment goals will effectively be realized. The investor’s rights to obtain information and to control will play a crucial role. Another focus will be to show possibilities to make an impact by becoming an anchor shareholder of corporations, which currently do not comply with the SDG, Paris agreement or other sustainable standards. A particular emphasis will be made on the legal possibilities to negotiate agreements with the executive board, guaranteeing the investor more direct influence in order to ensure that her superior investment goals are implemented and the investor’s guidelines are respected. Concluding remarks will be made on the challenges caused by Artificial Intelligence and its impact on sustainable investments.