UK creates official ESG investing standards

The UK has created a set of ESG standards for fund managers, officially recognised by the Government.

Under the BSI, in its role as the UK National Standards Body, the first specification for responsible and sustainable investment management has been published, addressing the policies and processes needed to create and embed a responsible approach to investment management.

The BSI collaborated with the Department for Business, Energy and Industrial Strategy (BEIS) and the UK financial services industry in support of the UK Green Finance Strategy in creating the new voluntary standard, PAS 7341:2020, that details the requirements to establish, implement and manage the process of integrating responsible and sustainable considerations into investment management.

The standard invokes five key principles of sustainable investment: Governance and culture, strategy alignment, investment processes, investor rights and responsibilities, and transparency.

Scott Steedman, director of standards at BSI, said: “The financial system is playing a crucial role in helping to rebuild a more sustainable future through responsible economic growth. This is the first consensus for delivering responsible investment management at corporate level. The new standard, called PAS 7341, creates a way for financial management organisations to transition from ‘responsible’ to ‘sustainable’ investment management. In our role as the UK National Standards Body we are proud to support the government’s Green Finance Strategy with this globally relevant, pioneering and practical standard.”

Download the free standard here.

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