The Pensions and Lifetime Savings Association (PLSA) has set up an industry group to support schemes in understanding their environmental, social and governance (ESG) and stewardship deadlines and duties.

The initiative is intended to help schemes get clear and consistent information from asset managers on their voting behaviour, as well as provide guidance on communicating how they have implemented their responsible investment and stewardship approaches.

The new body’s cross-industry group of expert participants includes scheme investors, professional trustees, investment consultants, asset managers and legal advisers.

A stakeholder group made up of key industry organisations, government departments and regulators will also be supporting the work.

The group will provide a voting behaviour template and ‘pack’ for asset managers to fill out so that trustees can compare engagement and voting behaviour, and to make it easier for trustees to produce their own disclosures.

The PLSA will also produce step-by-step guidance for schemes looking to achieve good practice on their implementation statements and responsible investment communications.

Schemes have new ESG disclosure requirements in 2020 due to changes made in 2018 and 2019 by the Department for Work and Pensions.

One such requirement dictates that trustees of defined contribution (DC) schemes must, by October, publish statements explaining how they have implemented their statement of investment principles, which they had been required to outline in 2019.

Defined benefit (DB) schemes are required to publish their statement of investment principles online by 1 October, with an annual implementation report to be released by the same date in 2021.

PLSA chair of voting and implementation statement working group, Laura Myers, said: “Many schemes are at the start of their journey when it comes to ESG and stewardship issues and after taking the time last year to document their policies they may now feel confused by the reporting requirements and how this applies to their scheme.”

Myers noted that ESG issues were “rising up the political and social agenda” and added that she was “delighted that our group can help trustees be on the front foot to help improve standards across the industry”.

PLSA policy lead investment & stewardship, Caroline Escott, said: “Although many schemes are rightly focusing on the ongoing implications of Covid-19, we must not lose sight of the new October obligations for many schemes to publicly disclose how they have implemented their ESG and stewardship approaches.

“We have been delighted with the response from industry to this project so far. We believe that working with members from across the investment chain will ensure we produce practical, accessible guidance for schemes which supports them in producing meaningful, high-quality communications on their ESG, stewardship and voting practices.”

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