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Fund EcoMarket

the sustainable, responsible and ethical investment information hub

 

Pensions, SRI, ESG and Stewardship

Pension schemes are increasingly bringing ‘sustainable, responsible and ethical’ investment considerations into their strategies and fund options.

Some schemes place a significant focus on the financial benefits of considering issues such climate risk,  supply chain management and corporate governance,  others look for ways to reflect the personal values and goals of scheme members.  Many do both.

This area is now firmly regarded as relevant to pension schemes with recent regulatory changes (reporting requirements) going live from October 2019.   (See PLSA article link below)

Fund EcoMarket offers the option to find (unit linked) ‘Pension’ fund options via the ‘Product’ filter field. We collect fund specific information for primary fund entries (OEIC and SICAV) but have recently added a link to the database which now populates (primary fund) information into the relevant linked pension (and life) fund entries of the same name, allowing users to ascertain screening, thematic and stewardship policies and practices. Adviser downloads available here.

The following sources help explain trustee obligations and recent developments:

Some key terminology briefly explained:

  • SRI: ‘sustainable and responsible investment’ – funds that combine environmental, social and/or ethical issues with financial aspects when deciding where to invest and relationships with investee companies (e.g. voting).
  • ESG: investments that bring ‘environmental, social and governance’ issues into consideration often as part of their risk management strategies.
  • Stewardship: responsible ownership strategies that typically involve fund managers engaging with companies (including voting shares) to encourage better management of environmental, social and governance issues.

Please note – fund and fund manager strategies vary. Read fund details for further information.

Statement of Investment Principles (SIP)

Most pension schemes are required by law to produce a Statement of Investment Principles.  Since July 2000 SIPs have been required to disclose:

  • the extent to which, if at all, the scheme takes account of social, environmental or ethical considerations when taking investment decisions; and
  • the use of rights (including voting rights) attached to investments

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Latest News

SRI Services shortlisted for Investment Week ESG Awards
September 9, 2021

I am truly delighted to be able to announce that SRI Services has been shortlisted for two Investment Week (Incisive Media) awards this year. The two categories we entered & are shortlisted for are: Best Sustainable & ESG Research & Ratings Provider Best Sustainable and ESG Support Service Provider or Consultancy This is particularly pleasing […]

‘The future of (sustainable) investment’ – Moneyfacts article
August 23, 2021

My thanks, once again, to Investment Life and Pensions Moneyfacts magazine for publishing my article on ‘the future of (sustainable) investment.’ The article is a roundup of the important regulatory developments that are emerging in this area – as well as the need for urgency in switching all investments onto a sustainable footing. The piece […]

Performance of ‘Ethical/Sustainable’ funds vs ‘Non Ethical’ July 2021
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The following table has been kindly supplied by Moneyfacts and is published in this month’s Investment Life and Pensions Moneyfacts magazine. It shows the performance of (what Moneyfacts refer to as) ‘Ethical’ vs ‘Non Ethical’ funds. In summary, it shows a consistent, and in many places remarkable, picture of outperformance for ethical equity funds over […]