Pension professionals have predicted a busy and challenging year for the pensions sector in 2022, with many issues continuing into the New Year alongside new initiatives for the industry to contend with.

With hope that the pandemic will subside, many commentators pointed to the increased focus on environmental, social and governance (ESG) factors in 2022.

“2022 will see the continued rise in the incorporation of key ESG issues, including but not limited to climate change, into defined contribution (DC) investment design,” said Janus Henderson Investors director, institutional DC, Dave Whitehair.

“More DC schemes will fall under the TCFD reporting requirements, which will shine a light on the current performance of DC pensions schemes in terms of climate impact, and specifically on greenhouse gas emissions. This will provide a helpful baseline for DC schemes to monitor progress, but it will also highlight parts of the investment universe where data gaps on key issues exist.

“We will also begin to see a greater focus on other responsible investment related topics, including more focus on the social aspect of ESG, as well as the theme of biodiversity.”

Hymans Robertson chief investment officer, David Walker, added that the industry has made “great strides” on ESG, but more must be done.

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