Gold standard DC provision in an ESG-focused climate – Barnett-Waddingham

The most successful providers will be those that plan for the long term, and balance social and climate considerations with members’ interests.

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Responsible or sustainable investing can mean different things to different people and the same goes with pension providers. The maze of ESG information can be hard to navigate and measuring a provider’s responsible investment credentials is challenging when each takes a different approach and sets its own goals. At times it feels, say Barnett Waddingham, as if we all need to become sustainable experts or at least seek the help of one.

Barnett Waddingham's ongoing assessment of defined contribution (DC) providers found that a few have 70% to 80% of their default offering based on some form of sustainable investing, and some have already started to integrate impact investing. However, other providers have very little sustainable investing exposure, which shows there is scope for more innovation in DC strategies. It is great to see some master trusts and providers committing to net-zero carbon emissions across their default investment strategy by 2050 or earlier.

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