From Environmental Finance:
''Trustees of UK pension funds are being encouraged by the industry regulator to consider longer-term non financial risks such as climate change and unsustainable business practices.
In a new Guide to Investment Governance, the Pensions Regulator reminds trustees that the UK's Law Commission issued revised recommendations on fiduciary duty in 2014 that said: "Where trustees think ethical or environmental, social or governance (ESG) issues are financially material they should take them into account."
Furthermore, the regulator added: "While the pursuit of a financial return should be your main concern, the law is sufficiently flexible to allow you to take other non-financial factors into account, if you have good reason to think that scheme members share your view and there is no risk of significant financial detriment to the fund."
Allowing that the Funds are not experts in all of the operational aspects of the businesses they invest in, there is an increasing need for agreement as to which are the key issues and standards for ESG compliance.
Ensure are able to deliver both guidance through the maze of relevant standards and also implement ESG upgrades and capacity building on the ground internationally.