Avon Pension Fund is set to poll its beneficiaries on their stance on investment in the defence sector, to inform a decision later this year by its Pension Committee on how to approach the sector. Under UK fiduciary law, a pension fund may take non-financial considerations into account in its investment decisions if, among other things, they have good reason to believe that a majority of scheme members would share their views. The survey will aim to gather views from a representative sample of 1,000 beneficiaries.

Staying in the UK, pension giant Nest sold out of Israeli defence firm Elbit Systems following a review of its holdings which resulted in a reduction in the number of companies it invests in, including those with the highest controversy scores. A spokesperson for Nest said: “We regularly review and discuss with our fund managers ways we can enhance our investment approach, ensuring we remain responsible stewards of our members’ money and reduce investment in companies which score poorly on ESG risk monitoring.”

Investors for Paris Compliance (I4PC) has filed a complaint with the Alberta Securities Regulator (ASC) alleging misleading disclosure regarding net zero by Canadian energy firms Enbridge and Cenovus Energy. The Canadian shareholder advocacy group’s complaint alleges the pair are conducting “systemic greenwashing” by “engaging in significant fossil fuel expansion while claiming alignment with net zero – a fundamental contradiction”. Moving forward, I4PC has requested that ASC conduct an investigation into the net-zero disclosures of Cenovus and Enbridge and peer companies to “remedy specific instances of overly promotional disclosure”, and work with other provincial securities regulators on guidance related to net-zero claims by publicly listed companies in Canada. An Enbridge spokesperson said it remains committed to “pursuing net-zero greenhouse gas emissions from our operations by 2050”. They added the firm remains committed to accuracy and transparency – “and we stand behind the information we share in our reports and communications”. Cenovus had not responded to a request for comment at the time of publication.

Russell 1000 companies are disclosing against 45 percent of TCFD recommendations on average, showing they are “potentially significantly unprepared” for California’s incoming reporting requirements, according to analysis from Canbury. The consultancy found that while 80 percent of the index constituents disclose Scope 1 and 2 emissions, just 11 percent disclose scenario analysis, and 12 percent do not report on climate at all. Companies scored highest on the governance pillar, with S&P 500 companies performing better on all metrics than their peers in the lower half of the Russell 1000.

SEB Asset Management has opened up five more funds to investment in conventional defence companies, including a Sweden index fund and global focus fund. The manager was an early mover, making this change for some of its funds in 2022 and a further wave in June.

The Australian Securities and Investments Commission (ASIC) has said its general supervision in 2024-25 resulted in a range of interventions related to sustainability disclosures which saw 15 companies and four superannuation trustees remove, retract or revise statements about their sustainability claims and credentials. The supervisor noted key concerns regarding unsubstantiated claims about the viability or feasibility of sustainability-related strategies, products or business models; claims about commitments to sustainability unsupported by identified specific actions, policies or processes; and inadequate disclosures about environmental and climate-related physical and transition risks, particularly for companies in highly exposed sectors.

ASIC also provided an update covering regulatory developments across sustainability and financial reporting. Following the introduction of mandatory sustainability disclosures in Australia, ASIC will release a quarterly update on how reporting is progressing. The regulator has reviewed a small sample of voluntary climate-related disclosures, mostly prepared in line with the Task Force on Climate-related Financial Disclosures (TCFD). It found that disclosures were often repetitive, with key information about the management of climate-related risks and opportunities sometimes obscured. Scenario analysis disclosures also lacked detail about the underlying assumptions and dependencies relied on in the disclosures, and transition plans were not linked clearly enough to the entity’s targets, actions and strategies.

The Australian Prudential Regulation Authority (APRA) has made prudential standards for governance and releasing the results of its climate vulnerability assessment for the general insurance sector two of its top strategic priorities in its corporate plan for 2025-26. Its plan is aimed at preserving the safety and stability of banks, insurers, superannuation trustees and the broader financial system.

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