The Society of Pension Professionals (SPP) has published a practical guide for pension trustees, setting out how they should engage with asset managers on ESG issues.

The guide provides a comprehensive outline of the various regulatory ESG disclosure requirements, ESG disclosure obligations for asset managers, a summary of the information that trustees need from their asset managers, and a breakdown of the role of the investment consultant in ESG matters.

As part of the guidance, the SPP provided a checklist for trustees on various parts of the disclosures and requirements.

For Task Force on Climate-related Financial Disclosures (TCFD), it includes governance, strategy, risk management, metrics and targets, listing both the information needed from asset managers and resources to support managers and trustees.

For a Statement of Investment Principles and an Implementation Statement that form a part of ESG and related disclosures, the guidance provides information needed from asset managers on voting information and engagement information as well as providing the relevant resources.

SPP president Sophia Singleton said: “This practical guide is a welcome addition to the available guidance on ESG for trustees, builds on our 2023 guidance on the same and is packed full of useful information in the form of checklists, summaries and case studies as well as more in-depth guidance.

“There is still some uncertainty about obligations in this area so we hope this SPP guidance will play a useful role in raising awareness and understanding.”

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