Simon Jones, Head of Responsible Investment at Hymans Robertson comments on the UKSIF report evaluating pension scheme's approach to climate change and ESG:

“We have long advocated for climate change to be seen as a material financial risk for DC members, so it’s great to see today’s recommendations by the UKSIF. The long-term investment horizon for DC means that there are opportunities available to improve member outcomes if climate risks are appropriately understood and addressed. In saying that, trustees have made rapid progress over the last twelve months to get up to speed with regulation and formulate their ESG approach. Many trustees are only at the starting point of their journey and we expect they will continue to evolve their approach to climate change investing and develop their policies over coming months and years. However, we have already seen many clients incorporate an ESG slant into their portfolios and this is set to increase over coming months as trustees understanding of ESG and climate change grows. Further, we see members are increasingly demanding a clear position on climate change and, by dealing with it now, trustees may find they foster a more engaged environment with a membership that feels part of the decision.”