The launch comes as a new report from Royal London Asset Management revealed that ESG is becoming a key part of clients’ investment decisions.
The guide provides an overview and update of key developments and trustees’ legal obligations in this area and focuses in particular on:
• Unpicking the fiduciary duty and applying it to common ESG approaches
• Navigating acronyms, jargon and organisations involved in ESG
• What’s coming up on the agenda for trustees in the next 12 months
• Next steps – practical actions for trustees wishing to advance ESG in their schemes
Stuart O’Brien, Partner at Sackers, said: “For many years ESG has been one of a number of issues vying for trustee attention, often with limited success.
“Whilst interest has been steadily increasing, this is set to speed up exponentially with the announcement last week that the DWP plans to consult on ESG fiduciary duties from June.
“Investment managers are now also making much of their own ESG credentials, keen for trustees to really think about how they incorporate sustainability and other financially-material factors into their investment process – rather than simply trying to maximise returns at all costs.”
He added: “We hope this guide will help trustees to navigate this complex area, to empower them to challenge their managers, consultants and investee companies effectively, and to make decisions that are in line with the true purposes of the scheme.”