Big 3Pension 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 becoming an increasingly visible part of the pension scheme landscape thanks to recent regulatory clarifications – and is now as accepted as being consistent with trustees fiduciary duties.

Fund EcoMarket offers the option to find (unit linked) ‘Pension’ fund options via the ‘Product’ filter field. However as fund specific information is held in primary fund entries (OEIC and SICAV) you should use the links provided to read across to primary fund entries of the same name, in order to find out about 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 (eg 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