28 JUNE 2017BY RACHEL FIXSEN
Defined contribution (DC) pension schemes in the UK have invested much less than peers abroad in socially and environmentally beneficial investments because trustees seem unsure whether they are allowed to, according to a new report.
The Law Commission, a non-political body that recommends legal reform where needed, has confirmed in a government-prompted report that there are no legal or regulatory barriers to pension schemes making socially responsible investments.
Law commissioner Stephen Lewis said: “Defined contribution pension schemes will be investing billions of pounds over the next decade, and it’s only right that they seek to get the best returns for their clients.”
However, it was possible to ‘do well and do good’ at the same time, he said, adding that large amounts had been invested in Australia and other countries in infrastructure, which had benefited savers and society.