ESG spotlight: A roundup of the latest news on environmental, social and governance initiatives, with Deloitte introducing a new default pension fund that puts the focus on sustainability, and BlackRock announcing ESG exclusions across five strategies within its Authorised Contractual Scheme fund range.
Deloitte’s new fund to drive responsible climate choices
Deloitte, which has 35,000 pension plan members in the Standard Life Master Trust, announced on Wednesday that as part of the company’s wider climate change and sustainability commitments it will introduce the Aberdeen Standard Investments Sustainable World Index Fund as the default for its plan members. The move will see Deloitte become the ASI Sustainable World Index Fund’s largest investor, with £1bn of pensions investment moving into the vehicle. Deloitte’s workplace scheme is managed by Standard Life and any member who does not wish to transfer their pension to the new fund is able to explore several alternative options, Deloitte noted.
BlackRock moves to ESG-screened indices
BlackRock announced on Wednesday that it has enhanced the environmental, social and governance credentials of five strategies within its Authorised Contractual Scheme fund range by switching their indices to ESG-screened version equivalents. Applying ESG screens across the five regional equity strategies will improve the sustainability profile of each fund, BlackRock stated. The manager also said that the shift will result in more than 70 per cent of the assets under management in its ACS range track ESG indices. The improvements are based on client demand for sustainable investment products, and ongoing regulatory changes requiring pension schemes to disclose how ESG factors are incorporated into investment decisions. BlackRock also noted that the ESG screens will reduce exposure to companies that have business lines or sources of revenue from controversial weapons, such as small firearms, thermal coal, and oil sands, as well as companies severely violating United Nations Global Compact principles. The five affected strategies are: BlackRock’s ACS World ex UK Equity Tracker Fund, ACS UK Equity Tracker Fund, ACS US Equity Tracker Fund, ACS Continental European Equity Tracker Fund, and ACS Japan Equity Tracker Fund.
