Pensions  

Guide to pensions and ESG

  • Describe some of the challenges around ESG and pension saving
  • Explain how to help clients on the pensions and ESG journey
  • Identify the advantages of investing in transitioning stocks
CPD
Approx.60min
Guide to pensions and ESG
Credit: Unsplash

Introduction

For many people, their pension fund may well be their biggest investment. Saving thousands of pounds each year, in the hope that it will have grown enough to provide plenty to live on, would lead one to think people might take an interest in what it is investing in.

But many would prefer to sit back and assume everything is all right. But the world of investment has changed dramatically in the past few years, as people realise they can have a material impact on the world around them through their investments.

As the consequences of climate change become apparent, investors who want to make a difference are starting to realise they can do so with the money they are saving for their retirement, and can make active choices about where that money goes.

But is investing one's pension with an environmental, social or governance mindset the same as building an ESG-focused investment portfolio? The timescales are different, so what does that mean for the choices one makes?

This guide, which is worth an indicative 60 minutes' CPD, aims to answer these questions.

In this guide

CPD
Approx.60min

Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

  1. In the first article, why does Dominic James Murray say fund managers do not want clients to take an interest in where their money is going?

  2. According to the first article there are more companies in the growth tech sector that are likely to be suitable for a sustainable portfolio than there are on the value side, true or false?

  3. According to the second article, which of the following is NOT an ESG approach to investing?

  4. Nine in 10 defined contribution savers remain in their scheme’s default fund, according to the third article, true or false?

  5. What is the advantage of investing in a transitioning company, according to the third article?

  6. A binary ‘yes/no’ questioning approach around sustainability preferences at the outset is the right way to go, according to the fourth article, true or false?

Nearly There…

You have successfully answered all the questions correctly, well done!

You should now know…

  • Describe some of the challenges around ESG and pension saving
  • Explain how to help clients on the pensions and ESG journey
  • Identify the advantages of investing in transitioning stocks

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