New Government regulation makes absolutely clear existing pension scheme duty to consider ESG factors
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DWP today lays new regulation requiring pension schemes to have a policy on financially material environmental, social and governance factors including climate change.
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Rules clarify that schemes may also develop policies on how pension savers’ values are considered.
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Statute now aligns with existing common law to provide absolute clarity to trustees.
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Schemes will be required to outline their policy on stewardship including how they engage with investee firms and how they exercise voting rights.
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UK Sustainable Investment and Finance Association (UKSIF) has played leading role in new rules coming into force.
11TH SEPTEMBER 2018, London: The Department for Work and Pensions has today announced plans to implement the Law Commission’s proposals to clarify pension scheme trustees’ fiduciary duties in statute. The announcement represents the culmination of 7 years hard work by UKSIF which has lobbied Government ministers, the Law Commission and financial regulators to clarify investors’ duties.
Full press release available here