UKSIF Comment – priorities for the new Pensions Minister

“We welcome the appointment of the new Pensions Minister following recent delays and look forward to supporting their priorities for the UK’s pensions industry. These should include continued consideration of how UK pension schemes are managing and integrating material social factors into their investments on behalf of their beneficiaries.

To these support schemes in efforts, we would like to see the new Minister progress at pace the work of the Taskforce on Social Factors (TSF) announced earlier this summer. This will ensure that schemes’ focus on social issues continues to strengthen, and the Taskforce could help firms tackle obstacles they face in addressing social factors, such as reliable data and common metrics. Taking social factors, such as the ‘just transition’, as seriously as environmental issues will help the UK advance towards it net-zero ambitions.

Separate to this, we would like to see the Minister consider further clarification of investors’ fiduciary duties, as we have seen an absence of understanding within industry on the extent to which ESG factors form part of these duties. This could provide valuable clarity to our members acting on behalf of clients, potentially helping unlock capital in the economy in the process.”—James Alexander, Chief Executive, UK Sustainable Investment and Finance Association (UKSIF)