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  • Industry concern over government’s ‘dangerous’ ESG proposals – Pensions Expert

    22 February 2016

    By Tom Dines

    A proposal that would empower the government to intervene in local government pension investment decisions where they contradict British foreign policy has raised concern in the pensions industry.
    … Law commission report

    Fergus Moffat, head of public policy at trade body the UK Sustainable Investment and Finance Association, said: “There’s been a conflation of terms between what the law commission terms financially material and non-material factors.”

    He said that often, “divestments are completely financially material”.

    Moffat said the proposals allowing government intervention in pension scheme investment were “particularly dangerous”.

    The law commission released a report on the fiduciary duty of investment intermediaries in 2014. It said while financial return should be a trustee’s primary concern, “the law is flexible enough to accommodate other concerns” and that “trustees may take account of non-financial factors if they have a good reason to think that the scheme members share a particular view and their decision does not risk significant financial detriment to the fund”.

    Read in full here.

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