ESG issues in pensions
ESG issues in pensions

The following Pensions guidance note provides comprehensive and up to date legal information covering:

  • ESG issues in pensions
  • What are ESG considerations?
  • Can trustees of occupational pension schemes take account of ESG considerations?
  • ESG requirements placed on trustees of occupational pension schemes
  • UK Stewardship Code
  • UN Principles for Responsible Investment
  • How to integrate ESG factors within investment strategy
  • How to reconcile ESG investment with trustees’ investment duties
  • How are personal pension schemes affected?
  • Other legislative measures and initiatives

FORTHCOMING DEVELOPMENT 1: The Pensions Regulator has co-established an industry working group on climate change to produce guidance for pension schemes on climate-related practices across governance, risk management, scenario analysis, and disclosure. TPR expects to consult on this guidance in early 2020 with a view to putting it on a statutory footing during 2020 as part of the Governance Code required by the Occupational Pension Schemes (Governance) (Amendment) Regulations 2018, SI 2018/1103 (which implement the new governance requirements in the IORP II Directive for occupational pension schemes within the EU, including an updated duty on the trustees or managers of an occupational pension scheme under section 249A(1) of the Pensions Act 2004 to establish and operate an effective system of governance including internal controls). For further information, see: Green finance strategy and Investing in action to combat climate change.
FORTHCOMING DEVELOPMENT 2: During the House of Lords Committee stage held on 2 and 4 March 2020, the Committee agreed to make amendments to the Pension Schemes Bill 2020 which were proposed by the government and which would impose new requirements on occupational pension schemes to manage climate change risk. The proposed amendments insert new sections 41A–B in the Pensions Act