Stuart O’Brien comments on rising tide of ESG in Pensions Age
Partner, Stuart O’Brien discusses whether the flood of ESG conversations within the pension fund industry is really changing the investment landscape.
Commenting on the use of ethical funds within the DC default, O’Brien states:
“…a lot of trustees fall into the ‘trap’ that they can tick the ESG box by offering some sort of ethical/green fund option for members with certain moral views to choose if they wish.”
“However, this completely misses the point that ESG should be considered as a financial factor not an ethical choice,”
“It should therefore be considered for DC default funds. If trustees consider that climate change, for example, poses financial risks to their DB portfolios then they open themselves up to challenge if they don’t similarly consider managing it in DC default funds.”
Read the full article in Pensions Age July 2018 digital edition pp 50-53 (free subscription required)