Overview

Environmental, Social and Governance (ESG) considerations are an increasingly important issue for pension schemes. Addressing new ESG obligations necessitates that employers, trustees, and scheme managers show they are proactively handling ESG issues within their schemes. Integrating ESG into pension schemes requires a strategic mindset that transcends mere compliance. It involves crafting a well-defined ESG strategy, gaining a thorough understanding of ESG-related risks and opportunities, and effectively translating these factors into financial impacts.

To successfully incorporate ESG considerations alongside their traditional responsibilities, trustees must adopt a strategic framework that encompasses investments, covenant impact, and administrative processes. This framework should facilitate effective management, monitoring, and reporting. By proactively addressing ESG factors, pension schemes can enhance resilience, transparency, and overall value for stakeholders.