PLSA leads way on climate advocacy

Climate think tank InfluenceMap has highlighted the Pensions and Lifetime Savings Association (PLSA) as one of the most effective pension trade bodies in Europe for its work on sustainable finance policies in the UK.

The think tank’s ‘The European Pensions Sector and Sustainable Finance Policy’ report found that sustainable finance policy was a ‘blind spot’ for many European pension funds, with many failing to actively engage with authorities. Instead, pension funds’ “relative silence” on climate-related financial policy development was being filled by industry associations.

PLSA praised

One of the most supportive associations for ambitious sustainable finance policies was the UK Pensions and Lifetime Savings Association (PLSA).

InfluenceMap noted that PLSA’s engagement with UK policy was “largely more positive than its EU counterparts”, earning a ‘B’ grade. Only the Institutional Investors Group on Climate Change (IIGCC) scored higher than the PLSA, receiving a ‘B+’ from InfluenceMap.

The PLSA was noted for its support of the UK’s corporate TCFD-aligned disclosures and for giving high-level backing to a UK environment taxonomy similar to that introduced in the EU. However, InfluenceMap said it had also offered only limited support for ESG disclosure regulation for pension funds in the UK.

InfluenceMap also looked at the board compositions of European pension associations. It found that associations mainly composed of financial groups and/or pension funds were generally more supportive of sustainable finance policy.

Here it highlighted the PLSA’s board, which includes asset managers such as Legal & General Investment Management, HSBC Global Asset Management, as well as national and regional pension funds.

PLSA response

In response to the report, Nigel Peaple, director of policy and advocacy at the PLSA, said: “An increasingly demanding regulatory environment and a significant shift in pension industry attitudes towards climate change and ESG have seen responsible investment become a very high priority for the PLSA and its members.

“Whether it is for our annual Stewardship and Voting Guidelines, our Carbon Emissions Template, our made simple guides on topics like ESG and natural capital, the engagement we have with policymakers about incoming regulations or the ongoing industry guidance, we are pleased to be recognised for our efforts in supporting the UK pensions industry help create a greener future.”