We are calling for UK pension schemes to take immediate practical steps by allocating just eight additional hours per year to unlock real progress on two key ESG priorities:
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Climate Action
Significant progress can be realistically achieved by all UK pension schemes by taking three practical steps:
- Quantify climate risks – each scheme has its own specific risks inherent in its asset and liability profile
- Identify climate opportunities – there is significant potential to improve returns and manage risk through the period of transition to a low carbon world
- Implement a Carbon Journey Plan – the ‘how and when’ these risks and opportunities will be managed
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Long-term stewardship
Trustees are the stewards of the assets over the long term, and we believe a real difference can be made by taking the following steps:
- Policy – set a clear stewardship policy
- Engagement – review investment managers’ corporate engagement activities and hold them to account on material issues
- Voting – review investment managers’ voting records on key ESG issues and guide their voting behaviour to be consistent with trustees’ investment objectives
With eight hours per year of effective, action-orientated trustee time (split between training, strategy, portfolio review and monitoring), pension schemes could begin to unlock significant impact and ultimately deliver better outcomes for members.
