BSI, the UK national standards body, has published the second output of a sustainable finance standardisation programme sponsored by the government and financial services industry.
Officially known as PAS 7341:2020, the output is a so-called
specification for investment management that distinguishes between, and
sets requirements for responsible investment management and sustainable
investment management. It builds on the sustainable finance framework
and terminology set out in what was the BSI programme’s first output.
This latest PAS identifies sustainable investment management as
taking responsible investment management “a step further by pursuing
specific sustainability goals or outcomes”.
BSI said the specification “underlines the importance of effective
disclosure to appropriate stakeholders, and builds on existing industry
guidance, principles and regulatory developments”.
Scott Steedman, director of standards at BSI, said PAS 7341 “creates a
way for financial management organisations to transition from
‘responsible’ to ‘sustainable’ investment management.
“This is the first consensus for delivering responsible investment
management at corporate level,” he said, adding that it was a “globally
relevant, pioneering and practical standard”.
Its launch coincides with the UK preparing to assume the G7
presidency and host next year’s UN Climate Change Conference (COP26),
Kwasi Kwarteng, UK minister of state for business, energy and clean
growth, said: “Transforming our financial system for a greener future is
crucial as we build back better from Covid-19 and to meet our legally
binding target for net zero carbon emissions by 2050.
“Building on our pioneering green finance strategy, this new standard
will help the UK investment sector become even more sustainable as we
strive to lead the world in tackling climate change.”
The specification is intended for use by, among other entities,
investment management firms, investment consultants, and asset owners,
with BSI specifically name-checking Pension and Lifetime Savings
Association (PLSA) members as a category of potential users.
It was produced by a steering group of individuals from academia,
government, NGOs, and organisations in and around the UK investment
industry, including Aviva Investors, Brunel Pension Partnership, the
International Business of Federated Hermes, the PRI, and Vigeo Eiris.
According to the specification document, its users are “advised to
consider the consider the desirability of quality system assessment and
registration against the appropriate standard in the BS EN ISO 9000
series by an accredited third-party certification body”.
IPE
© IPE International Publishers Ltd.
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