​Recommendations

1. Revision of the UK Investment Regulations including:

• clarifying that ESG factors are a core art of prudent investment decision-making
• clarifying that use of shareholder rights is in beneficiaries' best interests
• reporting on how investors implement statements of investment policies

2. Incorporation of ESG factors into the Stewardship Code and signatories to better report compliance with the Code
​3. Expansion of the FCA asset-management market study. Guidance to be issued by The Pensions Regulator (TPR) to help trustees review advice from and performance of asset consultants
4. Development of a common disclosure framework and metrics for reporting material ESG factors relevant to investors
5. Enhancement of ESG consideration and governance in DC schemes

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Implementation

Next Steps and Partners

Immediate steps the project team will take forward to support the recommendation.

Timeline

Timeline for the deliverable.

Existing Work

Ongoing activities at the PRI and UNEP FI that support the intervention beyond the Fiduciary Duty programme.
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Revision of the UK Investment Regulations

The transposition of the IORP II Directive gives the Department of Work and Pensions (DWP) and opportunity to revise the Investment Regulations consistent with our recommendation.
 
PRI may use its ‘collaboration platform’ (tbc) to engage the DWP.

The IORP II Directive must be implemented into UK law by December 2018, with compliance expected to be by end of 2019.

• The Global Guide to Responsible Investment Regulation
• PRI's IORP Directive Policy Consultation Response
• How Asset Owners Can Drive Responsible Investment

FCA asset-management market study. Guiance to be issued by The Pensions Regulator (TPR)

The project team to address this recommendation in connection with PRI's sustainable financial system programme.
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Starting June 2017.

• PRI's Sustainable Financial System Programme​

Enhanced consideration of ESG factors and stronger governance arrangements in defined-contribution (DC) schemes. 

The project team to engage following release of government’s “Independent Governance Committee” review in April 2017. Work plan to be decided.

Starting June 2017.

There are no immediate plans to support the other recommendations at this time.