ESG integration, not exclusion - Barnett Waddingham
The Department for Work and Pensions (DWP) issued a response to its consultation on clarifying and strengthening trustees’ investment duties in September 2018. The focus of the consultation was 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.