Buck launches ‘ESG dashboard’ for pension schemes

27 April 2021

Buck publishes the following on its website:
“Buck, a leading consulting, technology, and administration services firm specialising in pensions and employee benefits, has today announced the launch of its environmental, social, and governance (“ESG”) dashboard for U.K. pension schemes. In addition to showcasing scheme-specific ESG data, the dashboard will allow schemes to begin meeting the compliance requirements set out in the Pensions Schemes Act 2021, which passed into law on 11th February 2021.

Buck’s ESG dashboard goes beyond just meeting compliance requirements. The tool is designed to enable schemes to access ESG metrics on their investment portfolio as defined and prioritised by the trustees, and to also see relevant ESG management information clearly via the dashboard. Every trustee board and sponsor will have their own priorities within each of the “E”, “S,” and “G” requirements, and the dashboard is tailored for each board’s ESG preference and provides easy access to crucial ESG data that matters to them. This may include greenhouse gas emission data on their investment portfolio, social and governance scores, exclusions currently in place, and proportion of investments in potentially controversial businesses, as well as Buck’s ESG ratings on each underlying investment fund.

The launch of the new tool follows the incorporation of the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) into the Pension Schemes Act 2021, containing several new ESG requirements for schemes, which will begin coming into operation this year. Schemes will need to have in place effective governance in relation to the effects of climate change by 1st October 2021, and publish information relating to the impact of these effects by 31st December 2022.

These changes initially apply only to defined benefit schemes with over £5 billion in assets; those with between £1 billion and £5 billion will have an extra year to comply. A review, scheduled for 2024, will consider widening the scope of the regulations to include more schemes.”

Source: Buck