Partner Jane Kola comments in The Legal Diary re the Treasury committee calling for ESG regulations for smaller schemes
This week’s Legal Diary covers a recently published and unanimously agreed report by the Treasury committee, which calls for environmental, social and governance (ESG) regulations for smaller pension schemes.
Jane Kola commented:
“From our experience trustees of smaller schemes which are not in distress situations are engaged and interested in ESG and keen to do their part,”
“The challenge they face is how to do this cost effectively and how to influence change.”
However, there are no common standards and no benchmarks to work with. And given the current market conditions, small schemes do not have the resources to create that metric for themselves.
On that subject, Jane further commented:
“The larger schemes taking the lead should help smaller schemes comply in future years but only so long as that thinking does trickle down,” suggests Kola. “If not then a great deal of time and money will be wasted in compliance that could have been spent more wisely in promoting material and lasting change.”
Read Jane’s comments in The Legal Diary.
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