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.

PDF

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

Related insights

26 April 2024

Albertine Pegrum-Haram

Senior Associate, Responsible Investment

Decarbonising Steel: redefining the value chain and the role of iron ore miners

The need to decarbonise is driving innovation in the steel sector, which in turn is reshaping the global value chain for one of its key inputs – iron ore.
Read time - 1 min
23 April 2024

Neeti Shah

ESG analyst

Rana Plaza 11 years on

2013’s disaster served as a wake-up call to the garment industry. How have factory conditions changed and how are we tackling related risks through engagement?
Read time - 3 min
22 April 2024

Olivia Watson

Senior Thematic Research Analyst

Regulation set to supercharge push on plastics

Voluntary recycled plastic goals haven't really worked, but markets representing 30% of global GDP now have firm targets. How will companies and investors cope?
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.