Investment Themes

ESG - It's not what you say, it's how you say it

Improving trustee engagement with Environmental, Social and Governance risk factors through better framing and explaining.

Chris Wagstaff, Head of Pensions and Investment Education Columbia Threadneedle Investments
As all trustees of UK occupational pension schemes are well aware, from 1 October 2019 they have had to set out how they take account of financially material risks. Crucially, these include material Environmental, Social and Governance (ESG) risk factors, notably climate risk, prospectively the most material and systemic ESG risk of all.
However, in being tasked with taking a position on ESG, trustees don’t always have the available information, or the information framed and explained in such a way to make an informed decision about what constitutes a coherent ESG risk management policy, or responsible investment framework. Indeed, most trustees are often reliant on their asset managers and their investment consultant to inform their approach – something that can result in trustees seeing this merely as a tick box exercise, despite the ever increasing risks of doing so. Indeed, it appears that few schemes are currently going beyond the minimum regulatory requirements and few trustee boards are designing bespoke policies with many being heavily guided by advisers’ and providers’ default positions.


ESG – It’s not what you say, it’s the way that you say it

Related insights

4 October 2021

Natalia Luna

Senior Thematic Investment Analyst, Responsible Investment

Kyle Bergacker

Senior Responsible Investment Analyst

Climate change: reassessing the risks of wildfires

The risks of wildfire are clear, but in between individual hardship and broader economic impacts, many other costs are typically not accounted for by investors.
Read time - 3 min
14 September 2021

Jin Xu

Portfolio Manager

China is making good RI progress, despite its contradictions

China is a double-edged sword: it is the world-leading renewables developer, installing more than double the gigawatt capacity of its nearest competitor over the past decade both in terms of wind and solar power, but at the same time it has seen the highest coal capacity additions over the same period – nearly quadruple that seen in India.
Read time - 3 min
14 September 2021

Andrea Carzana

Portfolio Manager

Second-hand clothing to overtake fast fashion

The re-use and second-hand clothes market is projected to double over the next five years to $77 billion and could be twice the size of fast fashion by 2030.
Read time - 3 min

You may also like

About Us

Millions of people around the world rely on Columbia Threadneedle Investments to manage their money. We look after investments for individual investors, financial advisers and wealth managers, as well as insurance firms, pension funds and other institutions.

Funds and Prices

Columbia Threadneedle Investments has a comprehensive range of investment funds catering for a broad range of objectives.

Investment Options

We offer a broad range of actively managed investment strategies and solutions covering global, regional and domestic markets and asset classes.