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.
Related insights
4 July 2024
Responsible investment
Responsible investment
Senior Associate, Analyst, Responsible Investment
ESG Viewpoint: Nature Positive commitments: separating the green from greenwash
ESG Viewpoint: Nature Positive commitments: separating the green from greenwash
We outline six attributes of a good Nature Positive commitment and assess how a range of companies are stacking up.
Read time - 5 min
24 June 2024
Fixed income
Pensions
Head of Pensions and Investment Education
UK pensions news summary Q2 2024
UK pensions news summary Q2 2024
Covering relevant updates on regulation, policy changes, investment strategies and industry trends, this quarterly UK pensions news summary serves as an essential resource for pension professionals seeking to stay informed.
Read time - 10 min
19 June 2024
Responsible investment
Responsible investment
Senior Thematic Research Analyst, Global Research
Human capital – supply: the impact of demographic transition on investments
Human capital – supply: the impact of demographic transition on investments
Working populations are in decline, with the demographic dividend that has supported economic growth in many developed markets under threat. This will have a direct impact on the firms in which we invest.
Read time - 8 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.