TISAtech has launched an ESG investment strategy evaluation in collaboration with the Pensions and Lifetime Savings Association (PLSA).
Digital platform TISAtech - launched by The Investing and Saving Alliance (TISA) - sent a request for information to more than 1,700 asset managers globally to gather information about ESG issues facing investors, and their ESG-centric investing strategies.
A primary objective of the request for information is to share the insights with trustees of UK pension schemes and asset owners to support the active management of their exposure to climate change, in line with the Taskforce on Climate-related Financial Disclosures recommendations.
This will help pension trustees perform their duties which include governance of climate change as a major financial risk to their investments.
UK pension schemes and their trustees will be granted access to the responses of asset managers at no cost.
The PLSA said it supports the need for in-depth insights into investment strategies and future risks.
The information provided by asset managers will allow pension trustees to have better transparency of investing strategies and performance and will present to trustees those asset managers that demonstrate a commitment to ESG-focused competencies and capabilities.
A report will also be published to all key industry policymakers and stakeholders to help drive change and greater engagement across the industry.
TISAtech plans for this to become an annual exercise.
Chief executive Keith Phillips said: "The worlds of investment and ESG are no longer distinct. Gone are the days when pension trustees or asset managers would look to either maximise returns or boost ESG credentials - sustainability is now at the core of any strategy in any portfolio.
"TISAtech will help financial institutions navigate the complex and evolving policy, regulatory, and business landscapes to better understand the risks and opportunities related to climate change and sustainability. With increasingly exacting reporting frameworks, a notable cultural shift in the pensions industry, and the rising impact of climate change on equities and funds, an industry-wide shift towards ESG must be made now if financial service institutions are to keep up and limit the risk posed to members' future retirement incomes.
He continued: "This evaluation, which we hope will become an annual exercise, will support the pensions and wider financial services industry to navigate new risks and will ensure transparency. It will soon become very clear who is adapting and performing well and who is not."
PLSA head of defined benefit, local government pension schemes and standards Joe Dabrowski added: "We're pleased as part of the PLSA's ‘Investing for Good' work programme to be collaborating with TISAtech on this review of asset management ESG strategies. Pension schemes are keenly aware of the impact of climate change on their investments and on saver outcomes."
He continued: "When investing in a climate aware way and adapting to a fast-changing regulatory environment they also need the services and support of asset managers. The results of this work have the potential to create unprecedented transparency in the industry."
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