Let’s talk about environmental, social and corporate governance
The new regulatory requirements for UK Pension schemes announced by Guy Opperman, Minister for Pensions and Financial Inclusion, in January 2021 will make the UK the first major economy to require climate risks to be specifically considered and then reported on by pension schemes.
This paper is a great introduction to ESG and aims to provide an education on responsible investment approaches, regulatory direction of travel and fiduciary duty, relationship between responsible investment and performance and potential action plans for investors.
We define responsible investment (RI) as an investment approach that includes environmental, social and corporate governance (ESG) factors and broader systemic issues — for example, climate change and sustainable development - along with active ownership (stewardship).
These considerations can have a material impact on financial performance, and their inclusion is more likely to lead to sustainable investment outcomes, such as a greater ability to sustain pension payments in the future.
Mercer’s own investment beliefs state that ESG factors can have a material impact on long-term risk and return outcomes. We also believe:
To find out more, please download the report below.
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