PLSA launches new ESG and stewardship guide

The Pensions and Lifetime Savings Association (PLSA) has published a new guide, ESG and Stewardship: A practical guide to trustee duties, to help pension fund trustees comply with new requirements on ESG, climate change and stewardship, coming into force on 1st October 2019.

The PLSA said that the guide tackles the new requirements in a practical manner, with case-studies, questions and myth-busters. Under the new requirements from the Department of Work and Pensions, if trustees disregard long-term financial risks from ESG, climate change and stewardship factors, they will need to justify why this does not harm investment returns or outcomes for their members.

PLSA Policy Board member and chair of the ESG Taskforce, Brian Henderson, commented: “For many pension schemes, ESG factors are already central to risk management and investment decisions. The ESG guide should have something for all trustees; ranging from those schemes that are early in their journey looking for guidance to those already implementing their agreed policies and beliefs.” And Guy Opperman MP, Minister for Pensions and Financial Inclusion, said: “This guide is particularly helpful in setting out how trustees can explore, articulate and reach a consensus on their views of the extent to which ESG, climate change and stewardship factors are priced into the market.”