The Pension Regulator’s Louise Davey sets out the need for trustees to up their game on ESG issues
In a blog, posted on the Pension Regulator’s website on 17 May 2023, Louise Davey, director of regulatory policy, analysis and advice, argues that there has been a shift in attitudes towards ESG issues in the pensions sector.
She highlights that even just a few years ago it would have been rare for pension trustees to fully consider climate, environmental, social and governance (ESG) factors and wider sustainability issues in significant detail.
Davey believes this has been driven by developments in government policy, increased regulations, industry initiatives and greater awareness of the potentially profound implications of inaction for life as we know it.
The blog comes as scientists warn that there’s now a 66% chance we will pass the 1.5C global warming threshold between now and 2027.
Davey recognises legitimate concerns raised by trustees that this is an issue that needs to be addressed by government and policymakers, but argues that this should not be a barrier to trustees meeting their legal duties.
The blog sets out the Regulator’s plans to carry out a regulatory initiative in relation to schemes’ statements of investment principles and implementation statements, as indicated in the Pension Regulator’s 2021 climate strategy.
You can read the full blog here.
