Local Pensions Partnership Investments’ Post

Thoroughly enjoyed #RAOEurope24 yesterday and participating in the STWRD Round Table. Discussion on achieving the best outcomes from the eco-system of participants in stewardship led us to discuss the open FRC consultation on the UK Stewardship Code and specifically the proposal to revise the definition. My observation that the issue of intentional impact could potentially be solved by changing one word in the current definition (substitute "leading" with "contributing") seemed to land well – so for others who’d like to test it out in preparing their own responses to the consultation – here you go: “Stewardship is the responsible allocation, management and oversight of capital to create long-term value for clients and beneficiaries contributing to sustainable benefits for the economy, the environment and society”. Thanks to everyone who generously shared insights during the event. Local Pensions Partnership Investments Financial Reporting Council Responsible Asset Owners Global Symposia (RAOGlobal.org) UKSIF

What is decent work and what is the issue? abrdn have produced a framework to recognise decent working practices. This should make it easier for them to identify companies offering employment (that is) in line with decent working practices in sustainability and impact. #WorkingPractices #Sustainability #PensionsforPurpose https://ow.ly/NJ6G50UgEXy

🍃University of Birmingham Green Week🍃 To kick off Green Week yesterday I attended Catherine Mann's fabulous webinar 'Doing Good With Your Money' and learned some really crucial information about how much of an impact our pensions have on our sustainability goals. I had no idea that 300 million tonnes of carbon each year is linked to UK pensions, and banks have invested $6.9 trillion into fossil fuels only since 2016! For every £10 you put into your retirement pot, £2 is linked to deforestation. Which makes 'greening' your pension 21x more powerful than other sustainable actions like switching to renewable energy at home. I feel hopeful that the new FCA anti-greenwashing rule (to ensure he sustainability claims about services are fair and not misleading) will enable more people to make sustainable choices when it comes to where their money is going. I will definitely be reviewing my finances this week with the help of Catherine's resources!

Issue 44 of our #ESG newsletter, “For What It’s Earth” is now live. In our newsletter, we distill ESG-related policy, legal and market developments into a streamlined note, reporting on the issues most relevant for business and industry. Issue 44 discusses: The Sierra Club filing a suit arguing that the SEC’s climate disclosure rule should require additional emissions disclosure, EU Member States giving the green light on a watered-down version of the Corporate Sustainability Due Diligence Directive, the EU Council and European Parliament reaching a provisional agreement on banning the entry of products made with forced labor into the EU, the UK Department for Work and Pensions Taskforce on Social Factors launching a guide outlining the tools available to pension funds and their trustees. Visit our website to read Issue 44 of “For What It’s Earth”: https://lnkd.in/et2V7ENr   Subscribe to “For What It’s Earth” here: https://lnkd.in/eCg-UTHB

Climate and Sustainability Report 2024 on #pensionfunds #pensionskassen #caissesdepension by Climate Alliance Switzerland Klima-Allianz Schweiz quoted in European professional magazine IPE: - The share of all AUM that is on the way turning to a 1.5°C Paris Alignment is higher than two years ago. More than a third is a good progress, but still modest. - Only 1% is really Paris-1.5°C-aligned with full scale workstreams in powerful #activeownership, #decarbonization and strong #impactinvesting altogether, and with optimum #sustainability integration based on the Sustainable Development Goals SDG. - 40% of assets are still in DARK RED, that is pension funds are NOT TRANSPARENT, thus obviously investing conventionally; or yes they have a public website, but still throw money in a non differentiated way into global fossil economies. For pension funds, there is no excuse: the number of well-documented "advanced ESG" funds on the market has considerably increased. Also: more and more of the respective asset managers strengthen their #activeownership. The whole report in German: https://lnkd.in/dR539Hif And in French: https://lnkd.in/d3tPFW2G Fredy Greuter Martin Roth Schweizerischer Pensionskassenverband ASIP, Sabine Döbeli Swiss Sustainable Finance, Adrian Schatzmann Asset Management Association Switzerland, Christoph Baumann Staatssekretariat für internationale Finanzfragen SIF, Bundesamt für Sozialversicherungen BSV

Legislation to Restrict ESG Investing in Retirement Plans Resurfaces: As the DOL works in court to defend its rule allowing the use of environmental, social and governance (ESG) factors by fiduciaries when selecting plan investments, legislation to restrict the use of ESG has been reintroduced in Congress, albeit with modifications. https://buff.ly/3TZ42eg

Ireland's new MyFuture Fund will require employers to adapt their pension strategies before the September 2025 deadline, and our expert-led session recently covered the challenges employers face, especially those with voluntary plans, and how to manage dual systems under the new law. Gain valuable insights on staying compliant, competitive & ahead of the changes in our webinar replay: https://ow.ly/mf2i50UlmjR #EmployeeBenefits #MyFutureFund

Ireland's new MyFuture Fund will require employers to adapt their pension strategies before the September 2025 deadline, and our expert-led session recently covered the challenges employers face, especially those with voluntary plans, and how to manage dual systems under the new law. Gain valuable insights on staying compliant, competitive & ahead of the changes in our webinar replay: https://ow.ly/m15C50UnqfZ #EmployeeBenefits #MyFutureFund

Yesterday, I participated in a conference organized by FONDACT in a debate with Laure Delahousse, CEO of the French Asset Management Association (AFG - Association Française de la Gestion financière) on the possibility of extending at the European level the French model of employee saving via value sharing schemes. These schemes aim to involve employees in the performance and capital of the company through incentive savings plans (‘intéressement’) and profit-sharing (‘participation’). Incentive savings plans represent an optional collective performance bonus system, whereas profit sharing gives employees the right to participate in the company's net profit. In France, profit sharing is compulsory in companies employing at least 50 employees. Its ambition is to strengthen cohesion and social ties in the company and align the incentives of employers and employees. Both Laure and I recognized that the French model is a powerful tool to finance the economy, promote savings in the stock markets, and better align employees’ objectives with corporate health.  This system fully supports the CMU objectives and represents an interesting approach to promoting retirement savings in capital markets. However, while the concept is exportable, its implementation will primarily remain national because it needs to be aligned with each country's taxation and social security system. The lack of EU harmonization in these areas explains why there are hardly any cross-border activities in the savings and pension markets in the EU. #profitsharing #retirementsavings #pension #CMU #partagedelavaleur #épargnesalariale #entrepriseresponsable #intéressement #participation #RencontresEpargneSalariale

Ireland's new MyFuture Fund will require employers to adapt their pension strategies before the September 2025 deadline, and our expert-led session recently covered the challenges employers face, especially those with voluntary plans, and how to manage dual systems under the new law. Gain valuable insights on staying compliant, competitive & ahead of the changes in our webinar replay: https://ow.ly/Sul850UnGvh #EmployeeBenefits #MyFutureFund