The Department for Work and Pensions issued a consultation on clarifying and strengthening trustees’ investment duties in June 2018, with responses requested by mid-July.
The focus of the consultation is on the expectations upon trustees to take account of financially material risks within their investment strategies.
Whilst factors such as interest rates, equity risk, longevity etc. are widely considered, the consultation explicitly references those risks associated with Environmental, Social and Governance (ESG) factors.
"The direction of travel in which the consultation is heading will, we expect, require the majority of trustees to actively consider, potentially in detail for the first time, their approach to ESG factors within their investment strategy."
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