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  • ESG is part of fiduciary duty, says new code of practice from UK Pensions Regulator – Responsible Investor (£)

    2 August 2016

    by Laurie Havelock

    New rules hailed as “huge boost” for responsible investment

    “Trustees of UK pension funds should consider environmental, social and governance (ESG) factors when making investment decisions, where such factors are “financially significant”, according to a new code of practice published by The Pensions Regulator, which sets out standards for trustee boards of defined-contribution (DC) schemes…

    According to Simon Howard, Chief Executive of UKSIF, the revised code of practice could represent a “huge boost” for responsible investment in the UK and is great news for trustees of DC schemes, whose updated responsibilities represent the first time the Law Commission’s 2014 recommendations have been reflected in legislation.

    Howard continued: “The guide on investment governance is particularly welcome and we are pleased to see our opinions have clearly been taken on board by the regulator and at times directly reflected in the wording of the guidance.” He added that a similar review and set of guidance for defined benefit schemes would shortly follow the Pensions Regulator’s DC-specific advice.”

    Read in full here (£).

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