Stuart O’Brien comments on pension schemes challenging companies on climate lobbying in Pensions Expert
Partner, Stuart O’Brien, comments on the news that a consortium of pension funds with £1.6tn in assets has written to 55 large companies on their approach to climate lobbying, as government and regulators take action on Environmental Audit Committee recommendations to improve pension fund governance.
This comes at a time of increasing regulatory changes in relation to ESG and the recommendations on governance, strategy, risk management and metrics/targets from the TCFD (Task Force on Climate-related Financial Disclosures).
O’Brien considers that for trustees, the move is a “good example… of what can be done without necessarily changing your underlying investment strategy, or your underlying approach, but what can be done by active engagement with the underlying companies”.
And that smaller schemes shouldn’t feel daunted, as “They can certainly ask their managers whether they are supporting these sorts of initiatives through their voting and engagement strategies”.
Read the full comment and article in Pensions Expert