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

Could dashboards be the answer to Millennial pension apathy?

Could dashboards be the answer to Millennial pension apathy?

The dashboard rollout could be an inflection point

Paul Muir
clock 08 September 2025 • 4 min read
What is Reform UK's stance on pensions?

What is Reform UK's stance on pensions?

Reform UK recently held its 2025 conference at the NEC in Birmingham

Professional Adviser
clock 08 September 2025 • 5 min read
'A challenge that must be faced': Closing the gender pension gap

'A challenge that must be faced': Closing the gender pension gap

Latest DWP gender pension gap figures make 'uncomfortable reading'

Caitlin Southall
clock 05 September 2025 • 4 min read