ESG framework published for pension industry practitioners

The framework is similar in structure to the Guernsey International Insurance Association’s ESG framework that was launched in 2021, and strengthens Guernsey’s growing suite of ESG-focused guidance.

‘ESG is no longer marginal and is increasingly being regarded as a core issue for international pension schemes. Our members have indicated that they would welcome further guidance in this area following growing emphasis on ESG issues for pension planning,’ said Gapp chairman Stephen Ainsworth.

‘This framework marks a first step for Guernsey-based pension schemes to recognise how they can contribute towards sustainable development goals and make ESG at the heart of their governance structure.’

The insurance and pension frameworks contain many of the same concepts.

‘We were aware of the insurance framework developed by GIIA, and the positive reaction that there had been to its publication,’ Mr Ainsworth said.

‘Because of the many similarities between insurance business and pensions business, this seemed like a good place to start.

‘When we looked at the GIIA framework in detail we felt that several of the concepts were equally as valid for pensions as insurance. We have met with GIIA and have been encouraged by their reaction when they learned that we might develop a parallel framework for pensions.’

Adele Gale from GIIA, who was involved in the development of the insurance industry’s framework, added: ‘With the growing wealth of sustainable finance expertise in Guernsey our members benefit from a virtuous cycle of deepening and broadening knowledge and perspectives which in turn drive further developments. We congratulate Gapp on the success of the launch of their framework.’

Framework pillars

There are three core pillars to the framework – the first is governance, with the principle aim of ensuring that ESG is embedded within decision-making and the governance of a particular scheme.

The second pillar centres on investments held and whether they contribute to achieving the UN Sustainable Development Goals.

The third pillar looks at reporting, with the principle aim of ensuring transparency is at the heart of the framework.