We believe that introducing clear legal accountability for ecological harm is strategically aligned with building a financial system and corporate landscape fit for the current day. That is why we support the Stop Ecocide campaign.

As an organisation committed to aligning capital with long-term sustainability, we see this legal reform as a powerful tool to accelerate systemic change. It strengthens the rules that govern how businesses operate, and how investors, particularly pension funds, make decisions. This is why Systems & Governance Change is one of our core Ecosystem Themes. Embedding legal consequences for environmental destruction would help to shift incentives across the financial system, enabling markets to reward sustainable behaviour and penalise harm.

The case for legal guardrails in business and finance

Despite the rhetoric around sustainability and ESG, the truth is that many industries, and the investors backing them, still enable the large-scale destruction of nature. This is not always a result of intent; often, it stems from weak or unclear frameworks that fail to discourage harmful behaviour or reward responsible action.

Clear legal standards that define the limits of acceptable environmental impact would help accelerate change. These standards would not just deter the worst behaviours; they would create a baseline for what responsible business looks like in the twenty-first century.

Why it matters

The financial system relies on trust, risk management and long-term value creation. But it often falls short in addressing the systemic risks posed by environmental degradation. Our pensions system, for example, is heavily exposed to sectors that drive ecological breakdown, from fossil fuels to extractive industries. Too often, these investments are made without the informed consent of the people whose savings are at stake.

That is why we believe in building a system where sustainability is not a side note, but a central requirement. Stronger legal expectations would give pension fund trustees and institutional investors the clarity they need to redirect capital toward businesses aligned with the future, not the past.

Legal accountability enables market confidence

When we establish clear rules for what is acceptable, we not only signal what the right behaviour is to the market but we level the playing field for companies themselves. These rules allow businesses that prioritise sustainability to compete fairly, rather than being undercut by those who externalise environmental costs. Legal accountability also protects long-term investors from reputational and regulatory risks, creating a more stable foundation for growth.

Too often, sustainability is seen as a constraint on performance. In reality, it is the precondition for resilience. Legal frameworks that uphold environmental integrity help the financial system move from reactive, fragmented change to coordinated, credible progress.

Aligning capital with long-term outcomes

We are entering a new era where doing harm is no longer ignored and where investing in solutions is not only preferable, but necessary. The financial sector has a choice: continue to finance destruction and absorb growing risk, or lead the shift toward a regenerative economy.

At Pensions for Purpose, we support the redefinition of market norms to embed environmental responsibility at the core of financial decision-making. Legal reform is not a threat to business, it is a long-overdue correction that enables business to thrive without destroying the ecosystems on which we all depend.