The PLSA Investment Council poll found that more than half (57%) of pensions professionals engage with asset managers on social factors, but do not take action themselves.
The poll also found that while the majority of pension professionals (84%) have policies in place that cover social factors, many respondents are still in the early stages of social investment and there is still much to be done. It turns out that there are still many.
In particular, the poll found that 57% engage with asset managers on social factors but do not take action themselves, and 7% specify the importance of social factors, but , answered that they would like to do more.
Other considerations may also be distracting from social issues, as a further 7% admitted that they have not given much thought to social factors, focusing instead on the environment.
But Lauren Peacock, responsible investment manager at the Scottish Widows Master Trust, argues that climate and social factors must be considered holistically, saying: ‘We don’t want to bring the two together sooner. It was a mistake.”
“When we talk about climate change and the impact on the environment and the planet, we are the planet, we are the environment, and these are not separate things. So it’s essential that we talk about them together,” she said. said.
“And when you think about the transition to a lower economy, it’s people who are really at the heart of it. You need planning and strategy to really get the economy moving. People need to get new jobs, they need to be trained. But that’s not possible. Do it overnight. ”
Emma Barry, Railpen’s head of external communications, agreed, pointing out that there has been more focus on just transition recently and that “just transition needs to include social factors.”
“They are not isolated,” she said. “Even in local areas, when we look at the data, we see that people want access to green spaces, they want access to community spaces, and all of that is connected to what we think about the climate. It’s an immediate connection to what you’re doing,” she added. . “The line between the two is definitely becoming blurred.” [climate and social issues]. ”
And while the panel acknowledged that there was limited quantitative evidence and no basis for quantitative evidence in financial litigation to integrate social issues, Mr Peacock said that in terms of building a business case, He argued that there was an element of common sense.
To provide members with concrete examples and guidance, PLSA also develops a series of cases highlighting best practice investment approaches that not only maximize profits but also positively impact social causes. We announced the study.
Case studies include best practice examples from Scottish Widows, AXA Investment Managers, Franklin Templeton, Legal & General Investment Management, Railpen and Nest.
Commenting on the case study, Tiffany Tsang, Head of DB, LGPS and Investments at PLSA, said: “Many of our members not only fulfill their fiduciary responsibilities, but also excel at impact investing.
“These case studies will act as a guide, empowering members to navigate the challenges and opportunities presented by social forces, and keeping these issues at the forefront of pension scheme priorities.
“In an ideal world, the “E” https://www.pensionsage.com/pa/ “S” and “G” factors would be considered holistically. However, in recent years, emphasis has been placed on environmental issues.
“Growing public concern about diversity, inclusion, modern slavery and human rights continues to place increased scrutiny on pension scheme investment practices.”