Portuguese schemes now required to report ESG investment
A new law has been introduced for Portuguese occupational pension funds requiring them to prepare a statement of investment policy principles detailing their approach to risk and to environmental, social and governance (ESG) factors.
The law, which took effect last August, said the statement must include the methodology for assessing investment risk; risk management processes applied; and the asset allocation strategy followed, taking into consideration the type and duration of pension liabilities, as well as ESG factors.
The statement must be published on the pension plan managers’ website and be reviewed at least every three years.
The new law also significantly extends the information to be provided to members and prospective members, including fund contributions and expenses during the previous 12 months; accumulated pension balance; pension fund manager fees; fund investment returns; and projections of estimated member benefits at retirement age.
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