FEM logo
Fund EcoMarket

the sustainable, responsible and ethical investment information hub

Pension Funds and Social Investment – final government report

June 18th, 2018

sun-and-clouds-iStock_000004631244XSmall1This morning, 18 June 2018, the Government published its final response to the 2017 Law Commission report on pension funds and social investment. The following information was published today by UKSIF (whilst I was working on our MiFID2 response*!):

  • “The foreword is written by Guy Opperman MP, Minister for Pensions and Financial Inclusion, and Tracey Crouch MP, Minister for Sport and Civil Society. It notes the Government’s intention to take forward the Law Commission’s recommendations and announces a consultation from DWP on trust-based pensions with a view to implementing the changes by October 2019.Specifically this will mean a change to the law to require trustees ‘to consider the impacts on their investments from a changing environment, corporate governance and social trends’.
  • In addition, trustees will be expected to have a policy on how they take account of members’ view, such as on social impact. In an equally significant move, the FCA has also announced it will also take forward and build upon the recommendations for contract-based pension schemes, by consulting on rule changes for Independent Governance Committees (IGCs), although this will not take place until next year.

This is hugely significant news which is likely to provide a huge boost for responsible investors in the UK. It represents a big win for UKSIF, our members and everyone in the responsible investment sector who has been campaigning on this issue over the past five years and longer.”

I would like to thank UKSIF for both its hard work in this area and also for circulating today’s update.  This has been a major piece of work and indeed is a big win for our sector.

My involvement in this was earlier in the process and I am delighted that the linked PFS guide references our Fund EcoMarket tool (as did the earlier government report) – as I had a number of meetings with contributors to the government report.

Next stop (for those who are interested!) please respond to MiFID2 consultation by 21 June 2018, this is a further major ESG / SRI milestone!

*see previous blog.

 

 

Further UKSIF comments.

Sign Up to our Newsletter

If you are a Financial Services Industry professional you can sign up for our newsletter

Click Here

Latest News

London Climate Week – (free) Excel event tickets – 28 & 29 June
June 15, 2022

  London Climate Week event on 28 & 29 June  I happily agreed to become involved with a major London Climate Week event run by Reset Connect some time ago. The event is now only two weeks away. I did so mostly because I am always keen to help and encourage intermediaries to learn about climate issues […]

A collection of responses to HSBC’s Kirk extraordinary climate speech
May 27, 2022

Earlier this week I set out my initial response to HSBC’s head of Responsible Investment – Stuart Kirk’s – extraordinary presentation on climate risk  (see blog linked below). In the interest of understanding different points of view – here is a collection of  articles and opinions about his speech that we believe are relevant to […]

‘Man who jumps on bandwagon accuses fellow passengers of being on bandwagon’
May 23, 2022
HSBC

…and has now been rightly suspended by HSBC. There is so much to say on this story, but let me start by saying I have no desire to ‘bash’ HSBC. Big banks are imperfect and have, in my view, propped up the fossil fuel industry for far too long – but that is not what […]