September 2023
01Sep

The ‘S’ in ESG: What is the relevance for pension schemes?

Environmental, social and governance (“ESG”) issues are growing in importance and relevance for pension schemes. Action on ESG in the pensions industry has tended to focus on the “E” in ESG, and specifically on climate change. Less attention has been afforded to the other pillars of ESG, including the “S””. However, social factors should not be overlooked, as the law requires trustees to explain how they take into account financially material environmental, governance and social considerations. This blog post explores what...

September 1, 2023
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August 2023
30Aug

Brasil, Chile, Colombia y México Fortalecen Regulación ESG en Procesos de Inversión

Con el objetivo de informar sobre los avances en materia ambiental, social y de gobernanza (ESG; environmental, social and governance) observados por Fitch Ratings en el mercado de fondos y administradores de inversiones en Latinoamérica, la agencia creó un informe que muestra algunos desarrollos que han impulsado autoridades y reguladores de seis países donde Fitch tiene presencia o participación. De esta manera, la agencia tiene la facilidad de hacer una mejor comparación sobre los avances materializados hasta julio de 2023, incluida...

August 30, 2023
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30Aug

Vanguard support for ESG shareholder proposals down from last proxy year

Vanguard funds supported only 2% of shareholder resolutions on environmental and social issues at its U.S. portfolio companies in its 2023 proxy year, down from 12% in the prior proxy year. The proxy year lasts from July 1 through June 30, according to a brief published by Vanguard's investment stewardship team on Monday. Specifically, Vanguard said that in proxy year 2023 the firm saw 359 environmental and social proposals put forward for a vote at its U.S. portfolio companies, up from...

August 30, 2023
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25Aug

Unbundling Climate Change Risk from ESG

By Jeffrey N. Gordon  The divergence between the United States and the European Union over ESG disclosure and compliance policy for asset managers and companies is a striking feature of the corporate governance landscape. This divergence derives at least in part from differences in core features of the relevant political economy. In particular, retirement security in the US is significantly tied to stock market values; this is not so in Europe. The US is a petro-state, the world’s largest producer...

August 25, 2023
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25Aug

Canada’s Largest Pension Fund Invests in Reforestation Project in the Amazon

Canada Pension Plan Investment Board has joined a project led by Mombak Gestora de Recursos to produce carbon credits through reforestation efforts in Brazil’s Amazon region. The Canadian pension fund will invest up to US$30 million in Mombak’s reforestation fund, which aims to reach a target of US$100 million. The investment reflects a growing demand for carbon removal projects in voluntary carbon markets, as buyers increasingly favor initiatives that actually remove carbon rather than simply avoiding emissions. Mombak plans...

August 25, 2023
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22Aug

ESG investing by pension funds in Africa is not a demand problem

Africa’s value tomorrow will be, in large part, determined by what is preserved today. The investment world is locked in a raging debate around “values vs value” in financial returns consideration. Opponents of ESG investing approaches believe that it is primarily the role of governments to fight climate change. Their responsibility, they contend, is to maximize shareholder returns, climate concerns notwithstanding. After all, government taxes them. The missing link in this argument is optimization. Portfolio optimization, the objective of...

August 22, 2023
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July 2023
23Jul

Providing security, building sustainable futures

By Pension Protection Fund  Our purpose is to protect the future of millions of people throughout the UK who belong to defined benefit (DB) pension schemes - 9.6 million as at 31 march 2022. When these schemes fail we’re ready to help. We do this by paying our members, charging a levy and investing for the long term. Read book “here”

July 23, 2023
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20Jul

US. The debate over ESG and retirement plans continues

Part of the ongoing congressional debate over ESG centers on whether these factors should be considered as part of pension and retirement funds. Those of you expecting a resolution should prepare to exercise some patience. One of the most active representatives on the anti-ESG side of the debate is Rep. Andy Barr (R-Ky.), who introduced legislation targeting the use of ESG factors in retirement plan investments June 21. Barr has proposed changes to the Employee Retirement Income Security Act, which...

July 20, 2023
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18Jul

More to be done on sustainable investments despite ‘significant improvements’

The proportion of pension schemes seeking greater alignment or integration of sustainable investment beyond employer policies doubled from 20 per cent in 2021 to 40 per cent in 2022, analysis from Mercer has revealed. The group’s latest Responsible Investment Total Evaluation (Rite) report, which benchmarks around 1,000 schemes from across the defined benefit (DB) and defined contribution (DC) space, showed that schemes have made “significant improvements” in their sustainable investment credentials. In particular, the research found that 50 per cent of...

July 18, 2023
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13Jul

ESG Remains Important for Pension Funds and Asset Owners

Asset owners face the thorniest investment challenges today, dealing with inflation, geopolitical instability, and systemic risks like climate change. They oversee some of the world’s largest pools of capital, steering investment policy on behalf of pension plans, foundations, endowments, and sovereign wealth funds. Their practices shape the capital markets and the behavior of asset managers, financial advisors, and retail investors. They invest with a long time horizon and are exposed to the entire global market. That means they can’t diversify...

July 13, 2023
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