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  • UKSIF response to G7 commitment to decarbonise the economy

    9 June 2015

    G7 commitment to decarbonisation of the economy only credible if the UK Government acts on fiduciary duty

    • Pension funds need regulator to mandate consideration of climate change
    • Finance sector welcomes G7 commitment but calls for necessary restating of pension fund investment duties to back it up
    • Significant opportunities in investing to support the low-carbon economy

    The UK Sustainable Investment and Finance Association (UKSIF) today welcomed the agreement by G7 leaders on specific emission reduction targets over the next century, but warned that the UK Government must seize an imminent opportunity to ensure pension funds, invest  in line with that commitment.

    The 2014 Law Commission report Fiduciary Duties of Investment Intermediaries made it clear that when investing pension fund trustees should take into account financially material factors including environmental, social and governance (ESG) factors.

    Following discussion of a DWP consultation on the report at an April meeting in London, financial service providers overwhelmingly called for regulatory changes to clarify the extent of the powers and duties of pension fund trustees in accordance with the Law Commission view. Such a change would be in accord with yesterday’s G7 statement and would show the new Government’s commitment.

    Simon Howard, UKSIF Chief Executive, said “The G7 commitment to stretching targets in respect of COP 21 and emissions reduction before 2050 is essential. But, the exciting new commitment to decarbonisation by the end of the century is only credible if COP21 delivers.”

    Click here to read the full press release.

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