A new poll of industry professionals shows resounding support for responsible retirement investments, without forsaking financial returns
100 members of the Society of Pension Professionals were asked if funds should take into consideration the long-term implications of investments for society and our planet. 84% believed there was a need for more responsibility in terms of the vehicles being used to safeguard people’s retirements.
In contrast, just 9% said there was no need to think about impact on planet or people, and 7% did not know. But, while this numbers suggest an increasingly ESG-friendly pension industry, significant barriers remain, preventing action in this area. Although only 3% of respondents suggested members and stakeholders were opposed to ecological and sustainable investments, 32% said a lack of credible data was an issue, 27% cited ‘governance constraints’, while joint-third most common obstacles were ‘reporting fatigue’ and ‘investment underperformance’.
‘Despite a reported backlash against ESG, these results are yet further proof that the UK pensions industry takes impact investing seriously, with an impressive 84% of pension professionals indicating that ESG considerations should be taken into account alongside financial returns,’ Craig Campbell, a member of the SPP Investment Committee, UK Head of Responsible Investment at Aon, and Chair of this SPP event.’There remain barriers to investing but these are not insurmountable as data on ESG continues to improve, governance constraints are increasingly addressed and member opposition is evidently limited.’
Earlier this year, renewable energy provider SolarSense urged HMRC to provide updated guidance relating to its position on solar installations at commercial and industrial properties owned by pension funds.
Image: Gustavo Quepóns / Unsplash
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