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Industry Voice: Building sustainable DC defaults

The role of sustainable indexing in evolving default pension offerings

clock • 3 min read
Industry Voice: Building sustainable DC defaults

By the end of 2022, all UK DC schemes are likely to have integrated ESG into their default strategies. It will become standard to use ESG tilts and screens holistically, across the whole default strategy.

Investors are integrating sustainability considerations into their investment processes for a variety of reasons, including stakeholder pressure, regulatory compliance and reputation management. An increasingly important integration driver, however, is also the belief that environmental, social and governance (ESG) information can be consequential for the quality of portfolio construction.

BlackRock's sustainable index strategies provide investors with choices to build sustainable allocations that aim to meet their ESG objectives, ranging from simple screened solutions to climate-focused and thematic - across both equity and fixed income.

Blackrock's paper available on the link below covers four areas:

  • Benefits, trends & drivers of ESG adoption in UK DC
  • Sustainable indexing as key enabler of ESG adoption
  • A trend towards more bespoke sustainable solutions
  • Expanding proxy voting choice for our clients

 

 

This post was funded by Blackrock

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Issued by BlackRock Life Limited ("BLL"), which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority. The Fund described in this document is available only to trustees and members of pension schemes registered under Part IV of the Finance Act 2004 via an insurance policy which would be issued either by BLL, or by another insurer of such business. BLL's registered office is 12 Throgmorton Avenue, 46 London, EC2N 2DL, England. Registered in England and Wales number 02223202. Please refer to the Financial Conduct Authority website for a list of authorised activities conducted by BlackRock.

 

Any research in this document has been procured and may have been acted on by BlackRock for its own purpose. The results of such research are being made available only incidentally. The views expressed do not constitute investment or any other advice and are subject to change. They do not necessarily reflect the views of any company in the BlackRock Group or any part thereof and no assurances are made as to their accuracy.

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