Industry voice: Can ESG help drive value for DC scheme members?

clock • 1 min read

We asked J.P. Morgan Asset Management's Annabel Tonry about the potential of environmental investments.

The environmental market is now worth $2trn globally, and consists of companies which have a low environmental impact or which develop environmental solutions. By 2020, the sector is expected to grow to $3trn. Attitudes towards protecting the planet have certainly changed in recent years.

That is partly because a growing proportion of the population has personal experience of the damage ecological degradation can cause. Furthermore, sustainable investing has received a shot in the arm due to the sharp drop in the cost of technologies such as renewable energy, water recycling and agri-tech.

Speaking to Professional Pensions, Annabel Tonry says the drive towards sustainable investing is happening but it will take time.

"We have started to see a growing interest in ESG from the DC industry, however, I think there's still a relatively low level of understanding around what ESG is, how it's defined, its applicability and what it can mean for your investment return. The requirement on trustees now is they do need to consider ESG factors, at least on a very basic level, and its impact upon long-term returns and I would expect to see increasing interest from DC plans."

Click here to learn about why DC schemes should take a flexible approach in a low-return environment.

More on Defined Contribution

DC master trust outcomes 'significantly improved' since 2022 gilt market volatility

DC master trust outcomes 'significantly improved' since 2022 gilt market volatility

Hymans says master trust members have benefited from ‘favourable’ market conditions

Holly Roach
clock 21 November 2024 • 2 min read
Major master trusts express concern over government's approach to DC consolidation

Major master trusts express concern over government's approach to DC consolidation

Smart Pension and SEI both raise concerns over chancellor’s plans and timelines

Jonathan Stapleton
clock 18 November 2024 • 5 min read
'Decisive action' needed to address £100,000 gender pensions gap

'Decisive action' needed to address £100,000 gender pensions gap

20th Scottish Widows ‘Women and Retirement report’ addresses progress on gender pensions gap

Jasmine Urquhart
clock 13 November 2024 • 4 min read
Trustpilot