Environmental, social and governance investing: A guide for trustees

United KingdomScotland

In recent years, environmental, social and governance (ESG) have become increasingly important investment issues, both in the UK and globally. With roughly £2.5 trillion in assets, pension schemes are some of the most important players in the investment world. As the prominence of ESG increases, from a cultural, legislative and regulatory perspective, it is important that trustees have regard to the impact ESG has on their investment duties.

Trustees of pension schemes will be required to consider their investments in the context of ESG factors and set out their policies on stewardship. Trustees of most Defined Contribution (DC) schemes will be subject to further reporting and disclosure obligations.

The CMS pensions team has produced this guide to ESG for trustees.