UK pensions schemes struggle with ESG reporting, study finds

A number of UK pension schemes say they struggle to report on their ESG policies to a high standard and are largely unfamiliar with risks associated with climate change.

Caceis, a custody bank, found that over 40% of trustees and pension managers that it surveyed in the UK did not feel properly equipped to monitor and report on their schemes’ ESG policies to the standard they wanted.

Nearly three quarters of pension schemes were unfamiliar with climate change-related risks, while 26% said they found it a challenge to get access to the right kind of information.

According to Caceis, ESG reporting for the schemes is labour intensive and time-consuming because of this “information gap.”

The asset servicer’s study comes after the implementation last year of legislation requiring trustees to outline how they approach financially material factors, including ESG, into investment decision processes.

Over half of the pension schemes that took part in the survey said they believed that exposure to ESG-related investments would increase significantly over the next three years. Nearly 60% felt that ESG integration aligns with the values of pension scheme members.

Pat Sharman, a managing director at Caceis, said: “From a corporate citizenship perspective, as well as fiduciary requirement, implementing climate change and good ESG principles will be important for pension schemes of all shapes and sizes to help manage longer term risks for the benefit of members.”

© 2020 funds europe

HAVE YOU READ?

THOUGHT LEADERSHIP

Innovative US companies are providing some of the solutions to the climate crisis and transition to a more sustainable economy. We see potential opportunities in areas including renewable energy and…
FIND OUT MORE
This white paper outlines key challenges impeding the growth of private markets and explores how technological innovation can provide solutions to unlock access to private market funds for a growing…
DOWNLOAD NOW

IRELAND SPOTLIGHT

Visit our dedicated Ireland channel for all the latest news and analysis on the country's investment industry.
READ MORE

PRIVATE MARKETS FUND ADMIN REPORT

Private_Markets_Fund_Admin_Report

LATEST PODCAST