We help UK pension schemes understand their Climate and ESG risks
Two powerful solutions covering Climate and ESG risk reporting for UK pension schemes delivered by CACEIS, the sustainable governance partner of choice
Regulatory focus is driving increased pressures on sustainable governance for asset owners
October 2020 onwards
Trustees are required to disclose financial material considerations towards ESG and Climate Change. Implementation statements require information on how trustees acted on the sustainable principles set out in the SIP
Pension Schemes Act 2021
The Pension Schemes Act 2021 introduces new governance and reporting requirements for pension schemes in relation to climate-related issues. The reporting requirements are based on the Task Force on Climate Related Financial Disclosures (TCFD) recommendations.
From 1 October 2021, pension schemes with £5bn of assets have a legal duty to report on the financial risks of climate change in their portfolio. Pension schemes with £1bn+ in assets have to meet the same requirements from 1 October 2022.
All-round sustainable governance
Our solutions empower pension schemes to independently navigate, report and monitor their climate and ESG risks
TCFD-ready climate risk reporting
Your carbon emissions covered
Total Carbon Emissions (total greenhouse gas emissions attributable to a pension scheme’s portfolio)
Weighted average carbon intensity (taking the carbon intensity of each company in a pension scheme’s portfolio and weighting it based on holding size)
Scope one, two and three covered
Scope 1: All emissions from a company or under their control, such as facilities, manufacturing processes or vehicles
Scope 2: Indirect emissions incurred from electricity purchased and used by a company
Scope 3: Other indirect emissions from activities of a company arising from sources that they don’t own or control.
Your carbon emissions dashboard
You can access your TCFD-ready carbon emissions reporting from our digital platform, OLIS.
Total CO2 emissions
• Overall emissions breakdown by fund or segregated mandate, individual holding and sector
Average Carbon Weighted intensity
• Overall emissions intensity and breakdown by fund, mandate, individual holding and sector
• Portfolio carbon intensity attribution by fund/mandate and ISIN
• Carbon intensity ranking per ISIN by sector
ESG risk reporting
Our custody-agnostic and innovative ESG reporting solution for pension schemes gets to the core of their ESG risks across pooled funds and segregated mandates.
Leveraging a database of over 20,000 global companies to conduct ESG screening on the underlying companies held within a pooled fund or segregated mandate for their adherence to the 10 principles of the UN Global Compact
Identify UN Global Compact Breaches
We screen 20 controversial sectors that are commonly used as exclusions today. These include companies involved in animal testing, controversial weapons and tobacco.
Your action report
A tailored report provides a comprehensive view of breaches against the 10 UN Global Compact Principles. Levels of exposure are reported at an aggregate scheme level, at a pooled fund and segregated mandate level and at an underlying ISIN code
Data that’s powered by Sustainalytics
Powered by Sustainalytics, a global leader in the provision of high-quality, analytical environmental, social and governance research, ratings and data that covers over 20,000 companies. Sustainalytics brings 25 years of sustainable research expertise with a consistent approach on assessments across the investment spectrum.
Delivering good governance in managing your scheme’s climate and ESG risks
Provides your aggregate exposure on climate and ESG risks across your pension scheme portfolio
Full transparency on the carbon footprint attributable to the pension scheme’s investments
Full transparency on ESG breaches across pooled funds and segregated mandates
Drill down to company level (by ISIN, SEDOL, etc)
Flexibility to monitor exposure to climate and ESG risks on a quarterly, bi-annual or annual basis
Consolidated reporting that is independent of your asset managers and service providers
A flexible plug and play solution that helps you independently strengthen your governance around climate and ESG risks
- Pooled fund look-through For pension schemes investing in pooled funds, we can provide ‘look through’ analysis on climate and ESG risks
- Independent: Schemes benefit from a viewpoint of their climate and ESG risks that’s independent from their asset managers, creating the framework for strong governance
- Custody agnostic: Our solution is available to any pension scheme that requires more granularity of their climate and ESG risks
- Deep insight: A tailored report provides schemes with an overview of their breaches across the total portfolio, individual funds/mandates and at underlying ISIN level
- Activate dialogue: More informed insight on climate and ESG risks means schemes can have more precise dialogue with asset managers on how they are navigating those risks
- Putting you in control: You can access both the climate risk and ESG risk reports on one singular digital platform, OLIS, providing a singular point of entry for all our sustainable governance services. This powerful reporting tool puts you in control of how you want to visualise the data
What are the UN Global Compact Principles?
United Nations Global Compact is a worldwide initiative that is built around four core values driving 10 universal sustainability principles. It’s based on the foundation that corporate sustainability starts with a company’s value system and a principles-based approach to doing business – operating in ways that meet fundamental responsibilities in the areas of human rights, labour, environment and anti-corruption.
Adherence to the UN Global Compact principles is a cornerstone for companies practicing good environmental, social and governance practices.
1. Support and respect the protection of internationally proclaimed human rights
2. Make sure that they are not complicit in human rights abuses
3. Uphold the freedom of association and the effective recognition of the right to collective bargaining
4. Elimination of all forms of Forced and compulsory labour
5. Effective abolition of child labour
6. Elimination of discrimination in respect of employment and occupation
7. Support a precautionary approach to environmental challenges
8. Undertake initiatives to promote greater environmental responsibility
9. Encourage the development and diffusion of environmentally friendly technologies
|Anti-Corruption||10. Work against corruption in all its forms, including extortion and bribery|
Explore our ESG resources
Carbon Risk Product Guide
Learn more about our carbon reporting solution here
What others are saying
We partnered with the PLSA on our first survey centred on ESG and Climate Change. Find out what PLSA members are saying about the ESG and Climate Change
As part of our educational partnership with the PLSA, we recently hosted a webinar on what good governance looks like around the area of ESG and Climate Change
Learn more about our ESG reporting solution here.
Our pensions specialists are here to help
Pat brings over 30 years of experience at HSBC Securities Services, where she was Head of Relationship Management & Sales, Pensions, Europe and a Member Nominated Director of the HSBC UK Pension Trust, working across DB and DC schemes. She is currently a Trustee for the KAS BANK UK Pension Scheme. Pat also brings 22 years’ experience of working with UK pensions schemes.
Scott oversees CACEIS’ sustainable governance solutions for UK pension schemes, including cost transparency and ESG look through. Scott is also part of the CTI’s Technical Expert Panel, in helping define and drive good governance in the UK Pensions Sector.
Brings over 20 years of industry experience to our specialist pension team. James has worked with pension funds and other global custodians, including JP Morgan and State Street and works closely with clients on tailored solutions.
Henry has a wealth of experience within the financial services industry, focusing on both institutional and private client sectors. Prior to joining CACEIS, he worked as an institutional relationship manager at London & Capital and as an institutional sales executive at SEI Investments.
Michael works with a range of pension scheme clients on our sustainable governance solutions, which include cost transparency and ESG look through. Michael is an advocate in highlighting the importance of pensions to younger people and has written a series of blogs on ESG and Corporate Social Responsibility.