ESG – Environmental, Social and Governance

What is ESG?

Environmental, Social and Governance (ESG) factors are an important consideration for pension schemes. We want to make sure your money is responsibly invested and let you feel good about where it’s going and the businesses it’s supporting.

Watch our ESG animation below.

Here’s a brief summary of the factors it includes:

Environmental

Environmental factors encompass how well nature is maintained and protected by the business. This includes managing climate change risks, biodiversity, resource scarcity, and waste management.

Social

Social factors examine business relationships with employees, suppliers, customers, and the communities where they operate. This includes labour policies and relations, product liability (including cyber security), controversial sourcing, and social impact reporting.

Governance

Governance factors examine the internal business practices, governance, and procedures that companies adopt to govern themselves. This includes how decisions are made and their effectiveness, how companies comply with the law, and how the needs of external stakeholders are met.

For more information about ESG, you can watch our short video below.

Watch our ESG animation