Pension fund trustees will have to account for climate change and ESG factors in their investment decisions under new regulations unveiled by the UK government . The plans , announced by the Department for Work and Skills on 1 September , will require all trust - based pension funds to explain how funds are invested , with a specific emphasis on risks connected to climate change and low carbon transition . New DWP regulations will require pension fund trustees to explain approach to ESG and climate risk factors in investment decisions New regulations that oblige pension fund trustees to account for climate risk and environmental social governance Statements of investment principles must be updated by October 2019 and followed by annual reports on such risks . Failure to comply can see fines of up to £ 50,000 ( $ 65,000 ) for organisations or £ 5,000 for individuals .
Pension fund trustees will have to account for climate change and ESG factors in their investment decisions under new regulations unveiled by the UK government . The plans , announced by the Department for Work and Skills on 1 September , will require all trust - based pension funds to explain how funds are invested , with a specific emphasis on risks connected to climate change and low carbon transition . Statements of investment principles must be updated by October 2019 and followed by annual reports on such risks . Failure to comply can see fines of up to £ 50,000 ( $ 65,000 ) for organisations or £ 5,000 for individuals .