On the go: The Barclays Bank UK Retirement Fund has announced the integration of environmental, social and governance factors, as well as climate risk, into its diversified Multi-asset Growth Fund.
The fund, worth £1.3bn, is the main pillar of the UKRF’s defined contribution default solution.
The integration of ESG factors and climate risk information into investment decisions is designed to “generate sustainable, long-term returns for members”, according to a statement, and reflects the trustees’ responsible investment policy.
ESG characteristics will be used to screen investments and identify future growth opportunities, allowing the fund to target investments “that represent material improvements in measures of ESG and carbon emissions intensity”.
BlackRock, which manages the fund, will continue to engage on behalf of the trustee on issues around voting rights, ESG and climate change risk, and the transition to a low-carbon economy.
Peter Goshawk, chair of the UKRF trustee board, said: “There is compelling evidence that sustainable business practices lead to better returns, lower risks, and improved outcomes for members in the long term.
“The changes we implemented on the growth fund align with the trustees’ responsible investment policy and principles, and they are expected to have a positive impact on the long-term performance of the growth fund.
“At the same time, members’ pension savings will face less ESG and climate change risks, and will support the transition to a lower-carbon economy,” Mr Goshawk added.
