July 2025

Sustainable funds see global recovery, driven by European investors

Global sustainable funds have made a comeback, marking a notable improvement from the outflows seen in the previous quarter, according to data published today. The latest global figures published by Morningstar show that global ESG funds recorded an estimated net $4.9bn (€4.16bn) in the second quarter of 2025. This recovery was driven by European investors, with ESG funds drawing $8.6bn of net inflows over the past three months, after redeeming $7.3bn in the prior quarter, the firm said. This rebound comes after...

Dutch pension fund PME on ensuring alignment with asset managers

It is safe to say that asset owners are increasingly scrutinising how their managers are approaching sustainability. And PME, the Dutch pension fund for those in the metal and technology sector, is at the forefront of these efforts. The €59 billion asset owner is in the process of revising its approach to selecting and assessing managers to ensure the ones they use are delivering on its return expectations and are aligned with its values. Daan SpaargarenEvaluating managers on ESG is not new, notes...

ESG round-up: Investors call for EU to preserve key parts of sustainable finance rules

More than 80 investors and financial institutions have called on the EU to preserve the core of the EU Sustainable Finance Framework. Key European investors supporting the statement include Allianz SE, First Sentier Investors, La Banque Postale AM, Nordea, PKA and Storebrand AM. The signatories stated that regulatory simplification can be achieved without compromising on the substance of sustainability rules or their significant benefits for businesses across the EU. They have recommended that the European Sustainability Reporting Standards – which...

June 2025

UK. Govt confirms plans to review pension scheme sustainability reporting requirements

The government has announced that it is considering whether to update the current rules surrounding pension schemes' sustainability reporting, confirming that it will review the 2021 Climate Change Reporting Regulations this year as part of this. The update was one of a number of measures announced by the government today, as it shared three consultations, which form part of the first phase of its work to modernise the UK’s sustainable finance framework. This included a consultation on the draft UK Sustainability...

UK pensions remain committed to net-zero

UK pension schemes are increasingly committed to climate- and nature-focused investing, even amid geopolitical instability and the growing politicisation of net-zero, according to new research. The report, Climate Innovation – Investing in the Net-Zero Economy, released by Pensions for Purpose and commissioned by SAIL Investments, found that 40% of UK pension schemes now have dedicated climate allocations, while 60% regard climate risk as a core fiduciary responsibility. “In our conversations with pension funds, we found that they do not expect political volatility, particularly in the US,...

PAYG Pensions in a Post-Growth Economy: A Case Study Analysis

By Christine Corlet Walker, Dario Leoni & Tim Jackson Ecological economists have increasingly warned that continual reliance on economic growth poses existential threats to environmental sustainability. A post-growth economy would instead prioritise environmental and societal prosperity over economic accumulation. But this transition demands a careful scrutiny of ‘growth dependencies’. One area in which this reliance on growth is potentially profound – particularly in the light of aging populations – is pension systems. In this paper, we therefore begin to address...

PensionsEurope and EFAMA warn against slashing sustainability rules

PensionsEurope has urged EU lawmakers not to weaken the bloc’s sustainability reporting rules, and to pause a review of the Sustainable Finance Disclosure Regulation (SFDR) until there is clarity on the future of the green taxonomy. The trade association today published its official position on the EU’s ‘omnibus package’, which seeks to cut back Europe’s sustainability disclosure and due diligence requirements to make them more business friendly. While PensionsEurope agreed that current reporting obligations are too burdensome, it warned that some of...

April 2025

The role of CEOs in the sustainability of defined benefit pension plans

By Joanne Horton, Paraskevi Vicky Kiosse, Maria Koumenta & Evisa Mitrou The future of defined benefit (DB) pensions is a hotly debated topic in reward management. Drawing on agency and managerial power theories, the conditions under which CEOs can affect their sustainability have been examined. We show that when the CEO is a member of the same DB plan as their employees or when the CEO is both a member and a trustee of the plan, this affects the agency and power...

UK. Why pension schemes should not overlook SDR

The FCA’s Sustainability Disclosure Regulations (SDR) might be voluntary for institutional investors, but the new rules have arrived at a crucial moment. Pension schemes are under increasing pressure to invest in a way that supports the transition to a more sustainable economy, while continuing to maximise members’ financial outcomes. Could understanding potential implications of the regime help them navigate the evolving sustainable investment landscape while meeting their fiduciary duties? Let’s first consider the facts. One of the key components of...

UK. ESG round-up: Brunel faces government pressure to merge or disband

UK sustainable investment leader Brunel Pension Partnership may be forced to merge with another pool or disband after the government rejected the pool’s plans to comply with new requirements under the aim to drive consolidation of local government pension assets. The government had asked pools to submit plans to comply with new requirements on management and structure but has rejected those submitted by Brunel and another pool, ACCESS, meaning they will be forced to explore merger options. The pair...