Feature – Fiduciary duty


FIDUCIARY: A NEW DUTY


The dynamics of fiduciary duty are changing, but, as Andrew Holt discovers, institutional investors are managing the new landscape with gusto.


Theresa May’s legacy as prime minster will sit in each of her successor’s


in-trays


for the next 30 years. In 2019, she


enshrined in law that the UK must be carbon neutral by 2050. Just over a year later, the Labour Party sitting on the opposi- tion benches in parliament called for the law to be widened to include pension schemes.


“The climate emergency demands urgent action,” said Jona- than Reynolds, the then shadow secretary of state for work and pensions. A Labour amendment to the Pension Schemes Bill – which was ultimately unsuccessful – would have required retirement funds to align with the Paris Accord on climate change by 2050 “or sooner”.


The amendment caused a debate across the industry. The Pen- sions & Lifetime Savings Association (PLSA) was quick to respond and offer clarity. “With many pension schemes lead-


46 | portfolio institutional | December-January 2022 | issue 109


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