The Guide sets out five themes against which asset owners can ask their investment consultants to demonstrate their competence in advising on climate related issues. Whilst not intended to be prescriptive, the Guide sets out examples of typical and leading indicators which can support asset owners in their own evaluation of investment consultants.
The original guide was published in 2021 at a time when the understanding of good practice was moving quickly and some indicators were then intended to be stretching, aiming to drive the rapid improvement in standards.
In this updated version, expectations that were previously aspirational are now generally considered a core part of investment consultants’ offerings. By recognising the growth in understanding of climate issues and the evolving expectations of advisors, the updated guide captures changes in what may be expected of leaders.
The Guide seeks to recognise the important role that investment consultants can play in supporting asset owners to keep abreast of changing regulatory expectations and the complex interplay of climate competency with related environmental/natural and social factors.
In updating the Guide, the ICSWG consulted with and received feedback from a broad range of industry stakeholders including Pensions UK, the Pension Regulator and the Trustee Sustainability Working Group.
Commenting on the Guide, Helen Prior, workstream chair and Client Director at Mercer, said: “This Guide provides examples of how investment consultants can demonstrate that their firm and staff have the expertise, tools and thought leadership to support asset owners when assessing climate related risks and opportunities. We hope the refresh and fresh input from the Trustee side helps to keep it relevant for asset owners in 2026 and beyond.”
Mette Charles, workstream member and ESG Research Lead at Aon, said: “This Guide is designed to give asset owners of all profiles, a reference point when thinking about ways to assess if their advisers are well equipped to support them on their climate journeys.”
Simon Jones, Co-chair of the ICSWG, Head of Responsible Investment at Hymans Robertson, said: “As the understanding of climate-related issues continues to evolve, it’s important that asset owners can effectively evaluate the capabilities of those giving them advice. Updating the framework to reflect changing expectations is therefore vital to ensure that evolving best practice continues to be integrated into advice. The input we have received from asset owners and other stakeholders has been critical to this process and we hope the guide will remain a helpful and widely used resource.”
Bobby Riddaway, Chair of the Trustee Sustainability Working Group, said: “The Trustee Sustainability Working Group was formed to help to raise standards and drive change in sustainability practices across the industry. We are pleased to have provided input into the revised version of the guide and bring the asset owners perspective to expectations of consultants.
“When the Guide was first introduced, I was working in a medium sized consultancy, and the leading expectations set a high bar. It’s encouraging that many of those leading standards are now considered to be business as usual suggesting that practices have improved over the last five years – we want that to continue. At the TSWG, one of our goals is to focus on scalable solutions for all schemes so industry produced resources like this offer all trustees the ability to challenge and hold their advisors accountable.”
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