TPR promises more regulatory action on ESG

At the Association of Member Nominated Trustees’ winter conference on Monday in London, David Fairs, executive director for regulatory policy, analysis and advice at TPR, said that he has been tasked by the watchdog’s chief executive, Charles Counsell, to lead its efforts in this area.

“We are going to be putting a huge amount more effort into this whole area,” Mr Fairs said.

He added: “I am part of a working group set up by the Treasury to drive that forward. We are hosting COP26 in Glasgow in autumn, and what I think you will see from us – and from all regulators – is much more activity around that area.”

Research from the UK Sustainable Investment and Finance Association – which found that only one-third of schemes published their statements of investment principles by mid-November last year, despite a legal requirement to do so by October – was mentioned in the conference.

Responding to accusations of not doing enough in this area, Mr Fairs said: “I wouldn't say we are laggards, probably we haven’t done as much as the Prudential Regulation Authority on the issue of climate change and ESG, but we are looking to catch up pretty quickly.”

Government ministers now take sustainability seriously and are considering further action to influence pension investments, according to Janice Turner, founding co-chair of the AMNT, which launched its Red Line Voting programme in 2015.

This initiative established standards for ESG following a 2014 recommendation from the Law Commission.

Ms Turner said: “Last week we were invited by the pensions minister, Guy Opperman, for a meeting with him and the head of the Financial Conduct Authority, Christopher Woolard, to discuss how this matter can be resolved.

“There will be a workshop later this month attended by the FCA, the government, the Financial Reporting Council and TPR that we have been invited to attend, and this is also in response to our campaign.”