ESG and fiduciary management

Is your fiduciary manager achieving best practice?

Environmental, Social, and Governance (ESG) considerations have increasingly become a more significant topic of discussion for trustees, companies, and members. The Fiduciary Management (FM) governance model creates both challenges and opportunities when it comes to successful ESG management.

Our paper aims to help trustees navigate ESG in the context of fiduciary management. To do this, we provide clear actions for assessing and monitoring your manager, on topics such as:

1. Implementation – how assets are invested
2. Monitoring – how fund managers are appointed and reviewed on your behalf, and how your fiduciary manager engages with them
3. Reporting – what ESG metrics and measures are available for your scheme right now

We show how the market currently compares with our best practice recommendations, supported by findings from our ESG survey of 14 fiduciary managers who advise on over 90% of all UK DB pension scheme mandates (as at 30 June 2021).