Society is placing greater emphasis on companies behaving in a responsible way. This expectation extends beyond the company’s direct activity, permeating the supply chain and knock-on impact of its operations. Pension schemes are now legally required to document their approach towards managing material non-financial risks and in October 2020 will have to start reporting on how this is being implemented. Appropriate management of material risks associated with Environmental, Social and Governance (ESG) issues within the selection and ongoing stewardship of assets is not a ‘nice to have’, it is a fundamental component of investment management.