Dalriada Trustees Limited (Dalriada), one of the largest providers of independent professional trustee services to pension schemes in the UK, has today announced that it has committed to net zero carbon emissions across the pension schemes where it acts as sole trustee, by 2040.
It has further committed to review all schemes’ investment portfolios where it holds a sole trustee role with the aim of:
Cutting the carbon emissions of its investments by 25% by 2025
Cutting the carbon emissions of its investments by 60% by 2030
Achieving net zero investments by 2040, at the latest.
Dalriada will also carry the policy intent on net zero investments into discussions where it does not act as sole trustee but rather acts as a co-trustee.
Further to these commitments, Dalriada has also outlined its high expectations surrounding environmental, social and governance standards from investment managers and other service providers. This includes a preference for investment providers to be a signatory to the UN Principles for Responsible Investments.
Sponsor covenant is another area where Dalriada believes ESG factors may be critical. Trustees are concerned with the long-term security of paying member benefits and Dalriada sees ESG factors as integral to employer covenant considerations.
Dalriada recognises that the marketplace is not well positioned to deliver the data that trustees need to make the sort of informed decisions that are required. It expects over the coming months and years to work with investment advisers, investment managers and platform providers to create the right data feeds to allow it to understand the relevant ESG metrics by scheme, and by product. Once the data is in place, it expects through engagement, and where necessary replacement of providers and products, to create a trajectory that can deliver on its objectives.
As a firm, Dalriada has also committed to its own business and related businesses, within the 3173 Limited group, to adhere to these standards.
Dalriada can confirm that it’s parent Company 3173 Limited is also committed to adhering to these standards across all it’s group companies.
David Fogarty, Director responsible for investment at Dalriada Trustees, said: “As a leader in professional trusteeship Dalriada Trustees believes it needs to take a progressive position with respect to the environment and wider social considerations. We routinely make decisions on behalf of pension scheme members, where we act as trustee, on both the assets that schemes invest in and the providers that supply services to the schemes. We believe that all such decisions will be enhanced by integrating ESG considerations. It is our strong view that companies addressing and managing ESG factors impacting their business will provide better outcomes for their shareholders and other stakeholders over the long term.”
Jessie Wilson, professional trustee at Dalriada, commented: “Incorporating a broad spectrum of environmental factors in investment decision making is important for both the financial security of our pension scheme members, but also the world in which they will retire. The data that pension schemes currently receive is inadequate and we will be working with our providers to improve this.”
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