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<p /> <p>Pension scheme trustees are subject to a range of duties which, broadly speaking,
require them to act in the best interests of beneficiaries.</p><p>The Government consulted
on whether the law should be changed to provide clarity for pension scheme trustees
about their legal duties regarding considering financial and non-financial factors
when taking investment decisions, as well as encouraging trustees to consider their
approach to stewardship. The Government will respond to this consultation later this
year.</p><p>The guidance provided by The Pensions Regulator in its free ‘trustee toolkit’
was updated earlier this year to clarify that where trustees think environmental,
social or governance issues are financially material to a scheme’s investments they
should take these into account. The guidance also makes clear that the law permits
trustees to make investment decisions that are influenced by non-financial factors,
provided they have a good reason to think that scheme members share the concern, and
there is no risk of significant detriment to the fund</p>
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