Ahead of the government’s Pensions Bill, following the Pensions Investment Review, roundtable participants explored how the UK’s £3 trillion pensions sector could better integrate environmental and social risks while helping to finance national priorities, including infrastructure and the transition to net zero. Participants also examined the importance of regulatory certainty, fiduciary clarity and stronger international alignment in unlocking long-term investment.
Key contributors:
Panellists examined how pension policy can better support sustainable investment while strengthening long-term returns for savers. Participants argued that creating a larger pipeline of investable projects, particularly in infrastructure and the low-carbon transition, is more important than requiring pension funds to allocate capital domestically. Discussion highlighted the role of public capital in reducing investment risk and facilitating greater private sector participation. The conversation also explored the growing recognition that environmental and social factors represent material financial risks that cannot simply be diversified away. Participants emphasised the need for clearer guidance on fiduciary duty, greater international consistency across sustainability frameworks and improved integration of social factors into investment decision-making.
