ESG RISK
Aegon commits to net-zero default funds by 2050
The carbon emissions in Aegon UK’s default pension funds will be slashed in half by 2030 under a longer-term plan to reach a net-zero position by the middle of the century.
Navigating covenant and ESG in 2021 - what does the environment look like?
Michael Bushnell looks at the continuing impact of the pandemic on employer covenant and ESG risks, and how schemes can plan ahead.
2021 outlook: What's next for ESG?
After a year that took everyone by surprise, experts tell Professional Pensions what could be on the horizon for ESG in 2021.
Divestment alone dangerously undermines pursuit of zero-carbon economy
Dr Pooja Khosla and Amer Khan argue that schemes should use their monetary power to seek change rather than divest.
A quarter of savers would forego returns for ESG funds, AB finds
Defined contribution (DC) savers believe responsible investing is at least as important as returns, with 26% stating they would forego the latter if their fund was invested in an ESG-conscious manner.
How other asset classes could help improve ESG credentials
Justin Craib-Cox looks at the role that green convertible bonds can play in pension fund portfolios.
L&G to halve emission intensity of £81bn annuity book by 2030
Legal and General Retirement (LGR) has committed to cutting the carbon emission intensity of its annuity book by half by 2030, while the overall group targets a net-zero portfolio by 2050.
Low-carbon investing doesn't have to mean low return
With renewed urgency, governments and businesses strive for climate improvements, and pension schemes should take advantage, say Sammy Suzuki and Kent Hargis.
How should trustees consider climate risks to sponsor covenants?
UK pension schemes are working hard to counter climate risks across investment portfolios, but the assessment of climate risks to sponsor covenant must be a key focus of schemes’ broader risk assessment, says Michael Bushnell.
Just becomes first UK insurer to issue a green bond
Just Group has launched its inaugural green bond, raising £250m and becoming the first UK insurer to launch such an asset.
How the BT Pension Scheme will safeguard its portfolios and the planet from climate change
Morten Nilsson explains why the BTPS is aiming to be net zero on carbon emissions by 2035, and how it plans to get there.
Schemes must face the future to drive better outcomes
Julian Mund writes about planning for the future and the four challenges he sees for the pension industry over the next five years.
BT Pension Scheme sets 2035 net-zero target
The BT Pension Scheme (BTPS) has become the latest pension fund to commit to a net-zero investment strategy by a fixed date in order to mitigate the financial risks from climate change.
Social assets should be key on trustees' to-do list
Evita Zanuso looks at the role social assets can play in UK pension fund portfolios to help build back after the pandemic
Nest goes tobacco-free a year early
Nest has completed its plans to rid its investment portfolio of tobacco assets a year earlier than it had anticipated.
How to respond to pensions activism
Members are increasingly seeking external adjudication on schemes’ approach to ESG issues. Stephen Richards outlines the steps trustees can take to prepare for this activism.
The next frontier for responsible investment in pensions
While the pensions industry’s approach to ESG has changed considerably since three years ago, there are still opportunities for schemes to take advantage of, says Lauren Peacock.
Most schemes neglecting Brexit contingency planning
The majority of schemes have claimed political and economic uncertainty has led them to disregard contingency planning for the range of potential Brexit outcomes.
Swansea pension fund switches £500m to low-carbon strategy
The City and County of Swansea Local Government Pension Scheme (LGPS) will swap around a quarter of its assets to a low-carbon fund by the end of the month, it has announced.
TPR sets up industry group for enhanced law on climate change disclosure
Pension fund investors could face further disclosure requirements on ESG matters as an industry working group considers fresh law for trustees for as soon as next year.
Taking stewardship seriously
There is mounting pressure on schemes to engage more actively with firms in which they invest. Charlotte Moore takes a look at the different approaches being used.
How does the rest of the world see us?
While greater consideration of ESG is boosting impressions of UK pension funds, Brexit is dampening investor confidence, notes David Weeks.
Environment Agency fund joins global push for environmental impact disclosure
The Environment Agency Pension Fund (EAPF) has joined a coalition of 88 investors to demand companies disclose more information on environmental impact.
Pension funds 'need incentives' to invest for net-zero emission future
Greater incentives are needed to encourage institutional investors, including pension funds, to invest in such a way to help prevent climate change, investment experts have argued.
