UK Launches Taskforce to Support Integration of Social Factors in Pension Scheme Investments

The UK government announced today the launch of a new taskforce aimed at supporting the integration of socialSocial criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. factors into the ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. investing practices of the country’s pension schemes.

The taskforce, a minister-led, cross department working group headed by Minister for Pensions Guy Opperman, will help pension schemes to increase focus the “S” in ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. investing, addressing the risks and opportunities relating to issues including workforce conditions, supply chains, consumer protection and forced labor, among others.

In a statement announcing the taskforce launch, Opperman noted that pension while climate and environmentalEnvironmental criteria consider how a company performs as a steward of nature. issues have moved up on the agenda of pension schemes, “climate change should not be trustees’ sole consideration.”

The launch of the taskforce follows the release of results of a consultation by the UK’s Department for Works and Pensions (DWP), initiated last year, seeking feedback on how pension schemes approach socialSocial criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. risks and opportunities. In the forward to the call to evidence report, Opperman said that the consultation indicated that there is “clearly more to do” to drive increased stewardship by the schemes on socialSocial criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. issues, and that it is imperative that trustees “use their position and oversight to ensure that asset managers do not leave socialSocial criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. factors off the agenda.”

According to the government statement, the new taskforce will help pension schemes identify reliable data sources and useful resources for the assessment and management of material socialSocial criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. risks and opportunities, and contribute towards the development of wider principles, standards, and metrics.

Opperman added:

“Financially material socialSocial criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. factors also pose risks and provide opportunities to schemes’ investments, and our taskforce will help ensure that focus on socialSocial criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. factors continues to grow among pension schemes and throughout the investment chain.”

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