ESG RISK

The carbon emissions in Aegon UK’s default pension funds will be slashed in half by 2030 under a longer-term plan to reach a net-zero position by the middle of the century.

Michael Bushnell looks at the continuing impact of the pandemic on employer covenant and ESG risks, and how schemes can plan ahead.

After a year that took everyone by surprise, experts tell Professional Pensions what could be on the horizon for ESG in 2021.

Dr Pooja Khosla and Amer Khan argue that schemes should use their monetary power to seek change rather than divest.

Defined contribution (DC) savers believe responsible investing is at least as important as returns, with 26% stating they would forego the latter if their fund was invested in an ESG-conscious manner.

Justin Craib-Cox looks at the role that green convertible bonds can play in pension fund portfolios.

Legal and General Retirement (LGR) has committed to cutting the carbon emission intensity of its annuity book by half by 2030, while the overall group targets a net-zero portfolio by 2050.

With renewed urgency, governments and businesses strive for climate improvements, and pension schemes should take advantage, say Sammy Suzuki and Kent Hargis.

UK pension schemes are working hard to counter climate risks across investment portfolios, but the assessment of climate risks to sponsor covenant must be a key focus of schemes’ broader risk assessment, says Michael Bushnell.

Just Group has launched its inaugural green bond, raising £250m and becoming the first UK insurer to launch such an asset.