United Kingdom: Pensions Company to dump £440m of company holdings that fail ESG tests

Scottish Widows plans to dump company investments worth at least £440m that fail to meet its environmental, social and governance (ESG) standards, one of the most far-reaching exclusions policy adopted by a major UK pensions provider.

Pension funds and asset managers across the world are under pressure to protect client portfolios from the risks of climate change.

The UK government has pledged to reduce all greenhouse gas emissions to net zero by 2050. New rules for UK pension funds were introduced in 2019 which require trustees to adopt investment policies that protect retirement savers against financial risks arising from climate change and other ESG issues.

Holdings in companies that derive more than 10 per cent of their revenue from thermal coal and tar sands, manufacturers of controversial weapons and violators of the UN Global Compact on human rights, labour, environment and corruption will be sold under the policy.

The article has been summarised and the original full article can be found at ft.com

(Photo: Getty Images)

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