Bermuda's Ministry of Finance introduced the Benefit Entities Act 2025 and the Trustee Amendment Act 2025, proposing a new legal framework for entities that pursue public benefits alongside profit and updating trust law to permit trustees to consider environmental, social, and governance factors when investing trust assets. Under the proposed Benefit Entities framework, companies, limited liability companies, and limited partnerships could opt into a model typically associated with public benefit companies, including pursuing one or more public benefits, considering impacts on shareholders and other stakeholders, and periodically reporting on public benefit performance to shareholders and, in many cases, the public. The bill also includes flexibility on whether an entity must identify a specific public benefit, adopts a stated “triple bottom line” approach (profit, people, and planet), and extends availability to limited partnerships. The proposed Trustee Amendment Act would provide statutory flexibility and protection for trustees to take non-financial factors into account, including the environmental and social impact of investments and the governance of investee entities, and to reflect the views of settlors and beneficiaries on these considerations.
Ministry of Finance (Bermuda) 2025-09-12
Bermuda's Ministry of Finance introduces benefit entity regime and trust law amendment allowing trustees to consider ESG factors
Bermuda's Ministry of Finance introduced the Benefit Entities Act 2025 and the Trustee Amendment Act 2025, establishing a framework for entities pursuing public benefits alongside profit and updating trust law to include environmental, social, and governance considerations. The Benefit Entities framework allows companies, LLCs, and limited partnerships to adopt a public benefit model, with flexibility on identifying specific benefits and reporting requirements. The Trustee Amendment Act allows trustees statutory flexibility to consider non-financial factors in investment decisions.