The Independent Governance Group (IGG) has launched a sustainability charter to address the investment risks posed by climate change.
IGG, a professional pensions trusteeship and governance services firm, said the charter would set out how it would be working with clients and advisers, and showed its broader commitment to the pensions and investment industry.
The charter was created by Tegs Harding, head of sustainability at IGG and explains how IGG will direct industry attention towards the investment risks posed by climate change and biodiversity loss to pensions.
It also describes how IGG plans to work with clients and industry peers to promote sustainability, drive responsible investment and ensure that the long-term interests of members are best served; it includes promises to members as well as wider asks of advisers and asset managers.
Climate change and investment risk
These promises include recognise that where money is invested for the long term, systemic risks like climate change, biodiversity loss and inequality pose real threats to the value of members’ benefits.
It also promises to be transparent in its approach to sustainability and the way in which money is invested and to use the firm’s influence and voice in the industry to drive meaningful and wide-ranging change.
IGG also calls on the industry to collaborate to design common principles and approaches for assessing responsible investment.
Harding said:“We have a clear responsibility to our members to make sure sustainability sits at the heart of our approach to trusteeship. That is why “Creating Impact” is one of our core values. As asset owners with significant amounts of capital, we play a pivotal role in the financial system and are in a privileged position to influence and drive real-world change. We do not take this role lightly and are committed to continually doing more with our advisers and asset managers to act in the best long-term interests of members, society and the environment.”
TPR and climate change reporting
Earlier this week The Pensions Regulator said that while action on climate change governance and reporting was widespread among large schemes and master trusts, only a few small and micro schemes had devoted time or resources to it.
This was revealed in TPR’s 47-page annual DC schemes survey.
