Top tips for sponsors of pension schemes

Sustainable Investing in Pensions: Top Tips for Sponsors of Pension Schemes

This top tips guidance is written for organizations that sponsor a pension scheme on the why and how to engage with your pension trustees on sustainable investing.

Just as more and more companies are embedding social and environmental risk and opportunity into strategy and decision making, it is vital that their pension schemes follow suit. The impact that climate change and other environmental, social and governance (ESG) risks can have on value and returns is driving changes across the market, including by regulators. Employees are not only asking their employers what actions they are taking to build a sustainable business, they are starting to ask questions of their pension schemes. Campaigns like Make My Money Matter, which aims to empower individuals to call for pensions that they can be proud of – ones which build a better world without compromising on returns – are set to increase this demand.

Whether your pension scheme is defined benefit, defined contribution, a single employer scheme or through a Master Trust, this guidance sets out why the sponsor should engage with their pension scheme on sustainable investing, summarizing the regulatory landscape and providing some practical steps for engagement both with your trustees and your employees.

We would like to thank members of our CFO Leadership Network and Asset Owners Network for their contributions to this guidance.

This edition focuses on the UK market, timed to support the launch of the Make My Money Matter campaign. Much of the content will be relevant for organizations in other countries, although differing legal and regulatory frameworks will need to be taken into consideration.