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  • 1.  Social Factors guide for pension schemes from DWP

    Posted 19-10-2023 12:14

     Department for Work and Pensions (DWP)-convened Taskforce on Social Factors' draft guide on how pensions schemes can invest with social factors in mind has been launched today.

    The draft provides guidance on how to integrate social factors into the investment process and how to elevate stewardship across the industry.

    The deadline for feedback is the 1st of December and you can find the draft guide at: https://lnkd.in/eQPPz-wh. 

    Do we have members from the pension schemes investment spaces? It would be interested to hear from you on what challenges and opportunities have been so far on including/integrating social factors?



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    Aya Pariy
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  • 2.  RE: Social Factors guide for pension schemes from DWP

    Posted 24-10-2023 10:37

    I do think CFA UK should respond.

    The approach the DWP have seems similar to and TNFD although it focuses just on helping Pension funds incorporate Social factors into their fiduciary duty and investment decisions.

    However it has wider consequences...

    1.  Fiduciary duty of professionals between the end beneficiary and the investment asset all need to deal with the issue.  So CFA members with have to understand the pension fund mandates and they work for and relate this to wider industry understanding of fiduciary duty.
    2. The social factors require metrics measurement and impact evaluation. The burden of work will be pushed down the chain to in the end require investment asset level disclosure.  So surely this will require a TSFD but as with TNFD a mandate of double materiality.

    Piece by piece we will get the elements for a balanced sustainable investment approach and information that can be integrated to a more holistic investment approach.




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