The Independent Governance Group (IGG) has launched a new Sustainability Charter, calling on the pensions industry to work together to design common principles and approaches for assessing responsible investment.

The charter outlines the actions that the group aims to take to direct industry attention towards the systemic investment risks posed by climate change and biodiversity loss.

Created by IGG head of sustainability, Tegs Harding, the charter also outlines how IGG intends to work with clients and industry peers to promote sustainability, drive responsible investment and ensure that the long-term interests of members are best served.

It also includes promises to members, including a promise to be transparent in its approach to sustainability and the way in which money is invested.

In addition to this, the firm pledged to recognise that, where money is invested for the long term, systemic risks like climate change, biodiversity loss and inequality pose real threats to the value of members’ benefits.

It also promised to use its influence and voice in the industry to drive meaningful and wide-ranging change.

In line with this, IGG urged the industry to collaborate to design common principles and approaches for assessing responsible investment, as Harding argued that "we must all think about the role we play in climate change and biodiversity loss".

Commenting on the new charter, Harding stated: “We have a clear responsibility to our members to make sure sustainability sits at the heart of our approach to trusteeship. That is why “creating impact” is one of our core values.

“As asset owners with significant amounts of capital, we play a pivotal role in the financial system and are in a privileged position to influence and drive real-world change.

"We do not take this role lightly and are committed to continually doing more with our advisers and asset managers to act in the best long-term interests of members, society and the environment.

“In order to meet the UN’s goals for tackling the climate crisis, we must all think about the role we play in climate change and biodiversity loss, and what we can do, as businesses and as individuals, to create tangible impacts. As members of the investment community, we are not only in the position to make change but we have a duty to do so.

“Today’s charter demonstrates the commitments IGG has made and represents a call to action for the industry to drive further progress together.”

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