Organizations have an opportunity and responsibility to make a difference around the ESG agenda, and retirement plans are no exception.
Applying ESG principles to retirement benefits
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CHRIS MAYO: For companies that want to align their activities with environmental, social, or governance principles, there is a lot to consider when it comes to pensions. Furthermore, the company is not responsible for all of the decisions and, therefore, will have to work with its plan fiduciaries to implement certain changes.
Many of the environmental factors that companies and fiduciaries need to consider are associated with how the pension plan assets are invested. So, for example, addressing transition risk as the world's economy moves to net zero, developing a carbon journey plan, and attempting alignment of a pensions investments with corporate net zero commitments.