Fiduciary Duty Evidence for the Work and Pensions Committee

ClientEarth submits evidence to the UK Work and Pensions Committee arguing that current fiduciary duty legislation is too narrow, leading trustees to prioritise short-term returns over systemic climate risk management. The organisation recommends statutory duties to manage risks to the portfolio as a whole and to assess the real-world impacts of investments on society and the environment, aligning UK practice with European standards and UN human rights principles.

• Current legislation and regulatory guidance on fiduciary duties are insufficiently clear, leading some trustees to adopt a narrow interpretation that prioritises short-term returns over the proper management of climate risk.
• Climate risk is a material financial risk that affects the 'proper purpose' of investment powers, as it threatens a scheme's ability to deliver benefits through systemic impacts on the whole portfolio and the wider economy.
• UK pension schemes continue to invest in high-emitting sectors and provide capital to energy companies via bonds, which ClientEarth suggests indicates a failure to manage climate risks and align with the 1.5°C target of the Paris Agreement.
• ClientEarth proposes two specific statutory reforms: a minimum requirement for trustees to manage risks to the portfolio as a whole (including systemic risk), and an ideal positive duty to manage the impact of investments on the environment and society.

APA

ClientEarth (2024). Fiduciary Duty Evidence for the Work and Pensions Committee. https://www.clientearth.org/media/0epb2d03/clientearth-evidence-for-the-work-and-pensions-select-committee-12-february-2024.pdf

Chicago

ClientEarth. Fiduciary Duty Evidence for the Work and Pensions Committee. 2024. https://www.clientearth.org/media/0epb2d03/clientearth-evidence-for-the-work-and-pensions-select-committee-12-february-2024.pdf.

Wikipedia

{{cite press release |author=ClientEarth |title=Fiduciary Duty Evidence for the Work and Pensions Committee |date=February 2024 |url=https://www.clientearth.org/media/0epb2d03/clientearth-evidence-for-the-work-and-pensions-select-committee-12-february-2024.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{clientearth2024fiduciary, author = {{ClientEarth}}, title = {{Fiduciary Duty Evidence for the Work and Pensions Committee}}, publisher = {ClientEarth}, year = {2024}, month = feb, url = {https://www.clientearth.org/media/0epb2d03/clientearth-evidence-for-the-work-and-pensions-select-committee-12-february-2024.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }