Further, companies must make their governance and managerial policies readily available. This will ensure that no aspect of ESG is overlooked, and that all businesses are able to incorporate the entirety of ESG.
The retirement sector has made some incredibly promising progress regarding ESG. Indeed, the government’s move to make pension schemes mitigate climate change-related risks is a strong step in the right direction.
That said, the government and regulatory bodies must do more to ensure that ESG in its entirety is understood, so that the environmental aspects do not overshadow social or corporate governance considerations.
They must ensure that all investment and company information is readily available to advisers, to ensure that client preferences are prioritised.
While such changes are likely to take time, I remain optimistic that ESG will go from strength to strength over the coming years, as advisers help more clients achieve strong retirement outcomes while helping to create a sustainable future.
Andrew Megson is executive chairman of My Pension Expert
