Pension Funds and ESG Assessment

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Questions and Answers

What percentage of the 100 largest asset owners are pension funds, according to the Thinking Ahead Institute in 2022?

  • 67%
  • 75%
  • 56% (correct)
  • 40%

Who holds the ultimate fiduciary responsibility in a pension fund?

  • Executives
  • Trustees (correct)
  • Beneficiaries
  • Members

What is the primary concern of trustees in a pension fund?

  • Maximizing investment returns
  • Minimizing operational costs
  • Increasing asset allocation
  • Ensuring members' benefits are secure (correct)

What is a characteristic of pension funds that makes ESG risks particularly relevant to their investments?

<p>Long-term nature of their liabilities (B)</p> Signup and view all the answers

Who is responsible for the management of pension savings and payouts to beneficiaries upon retirement?

<p>Pension funds (A)</p> Signup and view all the answers

What is a factor that affects the level of delegation between trustees and executives in a pension fund?

<p>Governance of the pension fund (B)</p> Signup and view all the answers

What percentage of respondents in the survey conducted by PGB cited a preference for investments in sustainable energy?

<p>90% (A)</p> Signup and view all the answers

According to the interpretation of fiduciary duty in some jurisdictions, what is considered as part of 'acting in the interest' of pension fund beneficiaries?

<p>Both financial and non-financial outcomes (D)</p> Signup and view all the answers

What percentage of respondents in the survey cited the need to meet fiduciary duty and regulations as a key driver for adopting ESG principles?

<p>46% (C)</p> Signup and view all the answers

What is the purpose of PGB's mandatory survey on members' risk appetite?

<p>To make decisions based on members' input (B)</p> Signup and view all the answers

How often does PGB conduct a survey on responsible investment among its participants?

<p>Annually (B)</p> Signup and view all the answers

What percentage of respondents in the survey supported investments in tobacco?

<p>17% (C)</p> Signup and view all the answers

What is a common reason beneficiaries may inquire about their pension funds' investments?

<p>To protest against companies violating human rights (D)</p> Signup and view all the answers

How can national and local governments influence the integration of ESG factors in pension funds?

<p>By aligning their policy intent with their direct investment influence (D)</p> Signup and view all the answers

What is a potential contradiction in the behavior of asset owners with long-term liabilities?

<p>They prioritize short-term returns over long-term sustainability (B)</p> Signup and view all the answers

How can pension funds integrate long-termism into their investment approach?

<p>By setting up investment mandates that place value on long-termism (A)</p> Signup and view all the answers

What is a potential role of beneficiaries in advancing pension funds' responsible investment policies?

<p>To inquire about the pension fund's investment decisions and express concerns (D)</p> Signup and view all the answers

What is a characteristic of asset owners with long-term liabilities, such as pension funds?

<p>They are well aligned with long-term investing (D)</p> Signup and view all the answers

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