Marvin OnumonuThe Impact Investing Institute, Pensions for Purpose and the Global Impact Investing Network (GIIN) have relaunched the ‘Impact Investing Principles for Pensions’, to help trustees align investments with long-term impact and fiduciary duty.
The updated principles encourage pension schemes to set impact goals based on the needs and values of beneficiaries, including housing, climate change mitigation and community wellbeing.
The framework links impact priorities with incentives and clearer reporting, asking trustees to measure not just intentions but the scale and efficiency of impact achieved.
Trustees are encouraged to move beyond traditional approaches like voting and engagement, using capital to shape markets, influence policy and drive corporate behaviour.
The principles apply to all pension schemes, regardless of size or structure, to help trustees deliver for members and drive market changes.
Charlotte O’Leary, CEO at Pensions for Purpose, said: “Impact is everywhere and in everything but the intention to have a positive impact on people and planet isn’t.
“Trustees are being shown how to intentionally deliver returns and responsibility, not choose between the two.
“These Principles are a public good, freely available to support trustees, by focusing on measurable actions – such as investing in affordable homes, clean water and energy – this is extending beyond meeting member expectations, to protecting their savings from the systemic risks already battering portfolios.”
“This is fiduciary duty in a world defined by climate shocks and inequality.”
