September 2020

30Sep

Mobilizing Private Finance for Nature

By Benoit Blarel, Giovanni Ruta, Olga Gavryliuk, Pauline Poisson, Fiona Stewart, Samantha Power, Benjamin Guillon, Irina Likhachova & Lisa Choux (The world Bank Group) Biodiversity and ecosystem services, or nature for short, underpin many aspects of economic activity and are deteriorating at an unprecedented level, with potentially far-reaching implications for economies worldwide. Sustained ecosystem damage can trigger regime shifts and generate systemic impacts on human well-being and economies. For example, the degradation of natural ecosystems has been associated with an increase in the probability...

September 30, 2020
Books, Investment, Reports, , ,
Read more...
30Sep

Iceland’s pension funds sign sustainable investment declaration

Pension funds in Iceland have indicated their collective commitment to promoting sustainable development through investments, joining major players in the country’s financial sector by signing a letter of intent – alongside Prime Minister Katrín Jakobsdóttir. Read also EIOPA sets up its key priorities in the light of the pandemic In the open letter signed last week, a range of pension funds and banks declared that capital was an important driving force in shaping the economy and society as a whole,...

September 30, 2020
News, Slider, , ,
Read more...
15Sep

UK. Government encourages pension schemes to invest in green tech and infrastructure

Measures aimed at encouraging pension schemes to invest in a more diverse range of long term assets, including green technology and infrastructure, have been outlined by the government. It has launched a consultation and is seeking views on additional steps to encourage the consolidation of smaller pension schemes into larger schemes. The government believes a key wider benefit of an increase in consolidation could be the increased share of assets saved in large, defined contribution (DC) schemes potentially able to...

September 15, 2020
News, Slider, , ,
Read more...
11Sep

One of Sweden’s Biggest Investors Starts ESG Pressure Campaign

Alecta, a Swedish pension fund with about $110 billion under management, wants to take active investing to a new level to force the companies it owns to be more ethical. Carina Silberg, who runs a newly merged corporate governance and sustainability unit at Alecta, says her team is bringing in reams of data to figure out exactly what portfolio companies are doing when it comes to environmental, social and governance standards. If “large gaps” are identified, “targeted action” follows, she...

September 11, 2020
News, Slider, , ,
Read more...
07Sep

US. DOL´S mixed message for plan sponsors

The Labor Department is on a tear. In recent actions, it has opened the door for sponsors of defined contribution retirement plans to consider adding alternative investments such as private equity to their lineups. And it also sent a stern warning for both defined benefit and DC plan sponsors over including investments with an explicit ESG focus. More recently, it has proposed blocking an ERISA plan sponsor's ability to vote a proxy unless the issue has an economic impact on...

September 7, 2020
News, Slider, , ,
Read more...
04Sep

ESG Investing: Theory, Evidence, and Fiduciary Principles

By Max M. Schanzenbach, Robert H. Sitkoff Trustees and other investment fiduciaries of pensions, charities, and personal trusts, and those who advise them, face increasing pressure to rely on ESG factors in the investment management of tens of trillions of dollars of other people’s money. At the same time, however, confusion abounds about the intersection of fiduciary principles and ESG investing. This article cuts through that confusion to provide guidance about when and how ESG investing by trustees and...

September 4, 2020
Articles, Investment, Pension Management, , ,
Read more...
02Sep

European Pensions Lead Adoption of ESG Investments

While the United States is beginning to take notice of investments backed by environmental, social and governance principles, the majority of European pensions have already adopted the ESG theme. According to Mercer’s most recent European Asset Allocation Survey, the majority of European pension funds now incorporate environmental, social, and governance risks into their investments, compared to just two years ago when less than half even considered ESG as an option, Chief Investment Officer reports. The survey results showed that...

September 2, 2020
News, Slider, ,
Read more...

August 2020

28Aug

US. The Future for ESG Investing in Retirement Plans

The department of labor (DOL)’S proposed rule on environmental, social and governance (ESG) investment practices, published in June, intended to add clarity to years of obscure regulatory guidance. Instead, it’s created a layer of complexity among fiduciaries and has fueled more than 1,000 critical comments. The proposed regulation restates that plan sponsors in defined contribution (DC) plans cannot disregard financial approaches in an effort to pursue ESG-related considerations without violating their fiduciary duties under the Employee Retirement Income Security...

August 28, 2020
News, Slider, , , ,
Read more...
27Aug

European pension funds increasingly take ESG into account – Mercer

An increasing percentage of European pension funds are now taking climate-change risk into account when it comes to investment allocations, with awareness of ESG-related risks also on the rise. Read also Greece. Wave of Pension Applications Swamp Overwhelmed Greek System Consultant Mercer's latest European asset allocation insights survey found that 54% of respondents actively consider the impact of climate change-related risks on their investments, up from 14% in a 2019 survey. Read also UK. Taking action on climate risk: improving...

August 27, 2020
News, Slider, , ,
Read more...
21Aug

US. Sustainability Matters: Overwhelming Opposition to Proposed Regulation Limiting the Use of ESG in Retirement Plans

The U.S. Department of Labor has proposed a rule that would limit the use of investments that consider environmental, social, and corporate governance factors in worker retirement plans subject to ERISA, including 401(k) plans. Read also US. DOL Issues New Rules On Retirement Plan Income Disclosures The proposed rule questions the financial materiality of ESG issues and assumes that ESG-focused investment strategies and funds are primarily focused on providing “nonpecuniary” benefits, often at the expense of “pecuniary” benefits, otherwise known...

August 21, 2020
News, Slider, ,
Read more...