Richard Jones: Helping clients with small DB schemes face ESG challenge

ESG policy ramping up

clock • 3 min read

Richard Jones asks while investments go 'green', what is the cost for smaller DB schemes? Here he outlines the issues advisers should consider for clients with final salary liabilities

Imagine a world in which 4,500 smaller defined benefit (DB) pension schemes in the UK each pay around £3,000 to create an ESG policy. Collectively, company sponsors would be spending ap[roximately £13.5m on meeting this regulation. Money that could be contributing to pension deficits for members. Each policy would also need to be reviewed and signed off by trustees, and if we assume this takes around two hours of trustee time for each trustee this could be around 9,000 hours of work across the industry. ESG would also need to be discussed and debated at every board meeting in the futu...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

Preparing for 2029: Adapting to the Budget's salary sacrifice cap

Preparing for 2029: Adapting to the Budget's salary sacrifice cap

'While this policy alters the landscape, it arguably represents an adjustment rather than a fundamental reform'

Steve Charlton
clock 22 December 2025 • 3 min read
Utmost to sell life and pensions business to JAB Insurance

Utmost to sell life and pensions business to JAB Insurance

To focus on wealth solutions business

Jen Frost
clock 22 December 2025 • 2 min read
Editor's view: How disjointed is the government's salary sacrifice change?

Editor's view: How disjointed is the government's salary sacrifice change?

The editor's Friday Night Takeaway from 19 December

Jen Frost
clock 19 December 2025 • 3 min read