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Article | 10 March 2021 | ESG
By My-Linh Ngo, Head of ESG Investment Risk at BlueBay Asset Management
As attention increases for investors to take action on climate change, bondholders are taking active steps to influence issuers, while pension funds have the investment scale to meaningfully drive ESG progress.
With most countries lagging behind their Paris Agreement goals, combined with an absence of government leadership, attention on climate action has shifted to the investment community.My-Linh Ngo, Head of ESG Investment Risk at BlueBay Asset Management
One of the larger cohorts within the industry are the pension providers, which represent more than USD33 trillion in assets.
Many pension funds are getting a better grasp of incorporating ESG considerations into their investment practices, but equities have typically led in this arena, with the pick-up in fixed income somewhat slower. But with bonds typically accounting for the core allocation of pension funds – 54% in the average UK defined benefit pension, according to 2019 Mercer data – it’s an area that requires more attention.
In this article, My-Linh Ngo discusses:
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