A few months ago, the DWP criticised the UK pensions industry for failing to fulfil its obligation to consider the 'S' of ESG adequately in its investments. CFA UK's Pensions Expert Panel decided to respond to this by writing this paper to help the UK pensions industry move forward on the topic. The paper reviews the practical investment opportunities available to UK pension funds to successfully adopt social investing themes in their portfolios. It also explores the current challenges encountered by pension funds in 'S' investing and explains the reasons why 'S' Investing has been more problematic for pension funds to adopt than its ESG cousin, 'E' investing.
Andrew Burton, Torrie Callander, CFA, Rodney Chau, Alistair Jones, Arun Kelshiker, CFA, Paul Lee, Sensen Lin, CFA, Raj Morjaria, CFA, Maria Nazarova-Doyle, CFA, Stephen O’ Neill, CFA, Robin D'Souza, CFA, Hannah Street, CFA and Alessandro Zoino, CFA