Trustee guidance on ESG

UKSIF has published a guide for DB pension fund trustees on their fiduciary duties, highlighting the fact that the Pensions Regulator now requires trustees to consider ESG where it is financially material.

Sponsored by HSBC GAM, the guide explores the range of ESG factors which may be financially material to investors, including 14 ESG themes, and follows a 2015 meta-study by Arabesque (an UKSIF member) and the University of Oxford drawing a clear correlation between consideration of ESG factors and outperformance.

Last year’s ESG Made Simple guide by the PLSA also noted an ‘increasing body of evidence to suggest that companies with sustainable business models deliver improved financial returns, and that investor taking sustainability into account can deliver improved risk-adjusted performance.’

The full guidance paper is available here.

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