Charlene Cranny is communications and campaigns director of the UK Sustainable Investment and Finance Association.
Sustainable investing is persistently thought of as a ‘nice to do’ or even an ‘impossible to do’ by many UK pension fund trustees. Perhaps because it means considering issues that are more often thought of as ‘ethical’ than ‘financial’, such as human rights or plastic pollution.
However, environmental, social and governance (ESG) issues are – more often than not – financially material. That means trustees have a legal obligation to consider them as part of their fiduciary duty.