Portfolios constructed using a cashflow-driven approach can prove to be a good fit for meeting ESG regulatory requirements and mitigating risk, says David Curtis.
Pension fund investors could face further disclosure requirements on ESG matters as an industry working group considers fresh law for trustees for as soon as next year.
Some of the UK's biggest pension schemes will be forced to report on climate risk in line with recommendations from the Taskforce for Climate-related Financial Disclosures (TCFD).
While the majority of UK's largest pension funds have taken action on climate change, parliament says some are still failing to manage their schemes responsibly