Investment Fund ESG review 2021

ESG standards are rising, but so are client expectations

Pension scheme trustees are demanding more from their investment managers when it comes to managing risks associated with ESG and climate change, as both regulatory pressure increases and understanding of the risks increases.

To monitor the extent to which investment managers consider ESG and climate change within their strategies, XPS undertakes a comprehensive annual review of our clients’ fund, and in this report we publish a summary of our findings of this year’s assessment compared to last year.

The findings suggest that significant progress has been made by fund managers in response to the shift in industry sentiment, however there is still work to do to ensure robust management of the investment risks associated with ESG and climate change.