UK: Govt. to update definition of investor duties to include environmental, social & governance factors, incl. climate change

Auteur: Leslie P. Norton, Barron's, Publié le: 13 September 2018

"Socially Responsible Investing Gets a Boost From the U.K.", 12 September 2018

The United Kingdom government will update its definition of fiduciary duty to include “ESG [environmental, social, and governance factorsconsiderations including climate change,” reports responsible-investor.com. 

The change came after a public consultation with organizations include the British Airways Pensions, the BT Pension Scheme, the London Stock Exchange... 

"The changes focus on the responsibility of trust-based pension funds—currently the majority of schemes in the UK—to understand the financial implications of ESG issues, and not view them exclusively as matters of personal ethics, or optional extras,” the website reports.

“This is about the hard-headed fact that [...] broader considerations are likely to present long-term financial risks and opportunities to the solvency of [defined benefit] schemes and the value of members’ [defined contribution] pensions,” [...] the U.K. minister for pensions and financial inclusion [said].

By contrast, the U.S. Department of Labor in April advised retirement plans “not too readily [to] treat ESG factors as economically relevant to the particular investment choices at issue when making a decision.”

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Entreprises concernées: BP British Airways