Local authorities join drive to improve ESG reporting

Sixteen UK pension funds, including five major local authority funds, have issued a guide for better responsible investment reporting on public equity assets by asset managers.

The funds said that better reporting of environmental, social and governance (ESG) factors and stewardship activities for public equities would help show more clearly how these factors contribute to longterm risk-adjusted returns. West Midlands Pension Fund assistant director (investment), Mark Chaloner, said: “This landmark guide sends a clear signal to the marketplace as to what asset owners expect regarding their responsible investment reporting from fund managers of listed equity. The reporting mechanism in this asset class is evolving and this guide opens the dialogue in this space.” Environment Agency Pension Fund head of pension fund management, Dawn Turner, said: “Long-term relationships are key to financial performance. We want good quality, meaningful reporting from our fund managers to support this. The guide provides an excellent tool to make real progress.”

Lothian Pension Fund, Merseyside Pension Fund, Northern Ireland Local Government Officers’ Superannuation Committee, Strathclyde Pension Fund, as well as West Midlands Pension Fund, have all supported the guide, along with pension funds at BT, the BBC, Kingfisher, Unilever, USS and other major employers.