Changes to the Investment Regulations mean greater ESG disclosure requirements in statements of investment principles.

By Paul A. Davies, Michael D. Green, and Shaun Thompson

In response to trustees’ uncertainty about how environmental, social, and governance (ESG) factors — as non-financial factors — apply to pension schemes, the Law Commission and the Department for Work and Pensions (DWP) have been exploring fiduciary duties and regulatory changes to better accommodate ESG factors in pension schemes since 2014.

This joint exploration culminated in the publication of the DWP’s Government Response: Clarifying and strengthening trustees’ investment duties, which outlined the UK government’s intended changes to the pension sector’s incorporation of ESG factors.

This blog will explore the pre-2019 pensions and ESG landscape and outlines future changes to pension disclosure requirements.