In its consultation response, the DWP has confirmed the launch of a new taskforce to help trustees in their consideration of the social risks and opportunities relating to pension scheme investment – the “S” in ESG. Social risk considerations include, for example, global events such as the war in Ukraine and human rights issues such as modern slavery.
 
The response seeks to address the lack of data which may hinder the relevant trustee decisions by establishing a minister-led taskforce with a remit to identify reliable data sources and monitor and report on development. It provides a helpful analysis for trustees on how to take social factors into account.

In the light of the DWP’s response, trustees should keep their approach to social factors affecting investment decisions under review.

 


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