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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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