The paper summarises the main features and trends in pension fund ESG risks disclosure around the world available to regulators, members and the public. It includes reference to statutory requirements, general practice and voluntary disclosures in relation to pension fund accounts and other documents made available to members such as benefit/fund statements.
It includes all types of pension fund including defined benefit and defined contribution, and multi-employer structures. It is based on a global survey of practices in countries including the main locations for occupational pension funds, carried out in Autumn 2019, and a review of best practice as illustrated by a selection of major pension funds
There is reference to disclosures relating to climate change and other environmental, social and governance risks arising from pension fund investments. There is particular reference to the take-up of the recommendations of the FSB Taskforce on Climate-Related Financial Disclosures. Governance is considered in relation to the stewardship policies adopted in managing investments and there is reference to environmental litigation affecting pension funds.
We also comment on the impact of these trends on the work of actuaries. Drafting of the paper was largely completed before the onset of the COVID-19 pandemic, so there is only brief reference to it.