The first publication in the series, ‘Engaging with ESG: The story so far’, sets out the key regulatory and industry developments that have led to the current landscape of ESG investment among UK pension schemes.
From the early beginnings of ESG, then sometimes perceived to be synonymous with ethics and value-based investing, the industry has gone through the process of defining and refining what ESG investment really means and what approaches are available to pension schemes. The landscape of ESG investment is now one in which there is a much greater level of understanding and knowledge across the industry as a whole and regulations require schemes to at least consider these factors when formulating their investment strategy. However, as the area of ESG investment continues to develop, there are still many schemes that could benefit from greater support or intervention in order to engage meaningfully on ESG issues.
This Briefing Note establishes the background upon which the two subsequent reports in this series (to be published in 2021) will build a deeper analysis of the current UK ESG landscape to identify where support and intervention may be most beneficial.