ESG Made Simple 2019

ESG Made Simple

Consideration of Environmental, Social and Governance has become mainstream in the pension and investment world. Now UK policymakers have decided to more formally enshrine ESG into investment mandates through clarifying trustee duties around the consideration of financially material ESG factors (including climate change). But the concept and aims of ESG investing have varied over time, while fluid terminology and subtle variations have created some confusion. The result is that many trustees have been unsure of how ESG investment interacts with their fiduciary duties.

ESG Made Simple, sponsored by Kames Capital, aims to explain the concept of environmental, social and governance in investment decision-making and suggest how it can be integrated into the investment strategy and oversight of pension schemes. We include a suggested template for pension schemes to help them create their own ESG policy.