PLANADVISER - July/August 2022 - 15

Pension Plans Like ESG
Sustainable investing is now viewed as fundamental
INSTITUTIONAL ASSET OWNERS' stance
on sustainable investing has changed over
the years: The current approach broadly
embraces the use of environmental, social
and governance investing principles.
Yet, while ESG factors have become an
investment touchstone for institutional
asset owners, challenges such as strategy
implementation and poor data clarity
remain, a new Morningstar Indexes and
Sustainalytics survey found. According
to the report, " Voice of the Asset Owner, "
pension funds see a company's sustainability
as reflecting its worth as an investment,
not as some esoteric approach that
could damage potential returns.
Morningstar asked asset owners to
place their organizations on an ESG spectrum,
scored from 0 to 12. Choice of a low
number indicated the company felt ESG
considerations hamper returns. A number
in the middle meant the company saw ESG
as a financial factor, while higher numbers
suggested it has explicit social or environmental
goals. Finally, choosing a number
at the top indicated the company would be
willing to give up some returns to achieve
ESG objectives.
According to the results, most respondents
viewed ESG favorably, with many
seeing it as a potentially useful financial
factor at the least.
" We heard almost unanimously from
talking points
Young Investors Raid Their Savings
To Pay for School
Of the 49% of investors under age 34 who said
they've taken money from their 401(k) or individual
retirement account, 20% said it was to finance
education; 19% blamed a medical emergency.
Source: E*Trade from Morgan Stanley
the AOs [asset owners] we interviewed
that ESG is a critical part of their investment
policy and day-to-day thinking, " the
report says. " They know it is a very important
topic, but they are not always sure
how to address it. "
Respondents' ratings fell between 3
and 10, with most choosing 6 or above,
and several, 10, the report says, observing
that " those below 6 tended to cite fiduciary
concerns as the reason. "
" This implies that ESG factors are seen
as desirable objectives when used in a
tiebreaker context, " the report says.
According to the group, however, ESG
factors should be considered for investment
decisions only when there are sufficient
financial grounds for doing so.
Asset owners' varied ESG approaches
were illustrated by their
responses
to
different queries. One skeptical asset
owner, for example, shared the following
statement: " We cannot go to pensioners
and say, 'Oh well, your pension's going
to be reduced, because we decided we
needed to save the planet.' "
Another emphasized that their organization
does see ESG as a financial factor,
but " not purely a financial factor. "
Asset owners are also asking for more
tools, resources and data on ESG to inform
their investment decisions, the report
says. -Noah Zuss
➜ Utkarsh Patel will
move to Prudential
Financial Inc. as
global head of digital
products.
➜	PGIM Fixed Income
named Daleep
Singh as chief global
economist and head
of global macroeconomic
research.
➜ First Trust Capital
Partners LLC signed a
definitive agreement
to purchase Veriti
Management LLC, a
direct indexing asset
management and
financial technology
company.
➜ Mutual life insurer
New York Life
appointed Senior
Vice President Todd
Taylor as head of retail
annuities.
➜ As part of Voya
Financial Inc.'s planned
succession process,
the company's board
of directors appointed
Heather Lavallee as
president and CEOelect.
➜
NFP hired John
Stewart as senior vice
president, surety leader,
in Canada.
➜ The Standard hired
Mike Shamon as stable
value sales director.
planadviser.com July-August 2022 | 15
➜
http://www.planadviser.com

PLANADVISER - July/August 2022

Table of Contents for the Digital Edition of PLANADVISER - July/August 2022

Balancing Act
Greater Access
Previewing Plan Features
A Different Way to Save
Next-Level Options
New Territory for Income?
Compliance for Wealth Managers
If Caught Off Guard by A Failure
Larry E. Crocker
PLANADVISER - July/August 2022 - C1
PLANADVISER - July/August 2022 - FC1
PLANADVISER - July/August 2022 - FC2
PLANADVISER - July/August 2022 - C2
PLANADVISER - July/August 2022 - 1
PLANADVISER - July/August 2022 - 2
PLANADVISER - July/August 2022 - 3
PLANADVISER - July/August 2022 - 4
PLANADVISER - July/August 2022 - 5
PLANADVISER - July/August 2022 - 6
PLANADVISER - July/August 2022 - 7
PLANADVISER - July/August 2022 - 8
PLANADVISER - July/August 2022 - 9
PLANADVISER - July/August 2022 - 10
PLANADVISER - July/August 2022 - 11
PLANADVISER - July/August 2022 - 12
PLANADVISER - July/August 2022 - 13
PLANADVISER - July/August 2022 - 14
PLANADVISER - July/August 2022 - 15
PLANADVISER - July/August 2022 - Balancing Act
PLANADVISER - July/August 2022 - 17
PLANADVISER - July/August 2022 - 18
PLANADVISER - July/August 2022 - 19
PLANADVISER - July/August 2022 - Greater Access
PLANADVISER - July/August 2022 - 21
PLANADVISER - July/August 2022 - 22
PLANADVISER - July/August 2022 - 23
PLANADVISER - July/August 2022 - Previewing Plan Features
PLANADVISER - July/August 2022 - 25
PLANADVISER - July/August 2022 - 26
PLANADVISER - July/August 2022 - 27
PLANADVISER - July/August 2022 - A Different Way to Save
PLANADVISER - July/August 2022 - 29
PLANADVISER - July/August 2022 - 30
PLANADVISER - July/August 2022 - 31
PLANADVISER - July/August 2022 - Next-Level Options
PLANADVISER - July/August 2022 - 33
PLANADVISER - July/August 2022 - 34
PLANADVISER - July/August 2022 - 35
PLANADVISER - July/August 2022 - New Territory for Income?
PLANADVISER - July/August 2022 - 37
PLANADVISER - July/August 2022 - Compliance for Wealth Managers
PLANADVISER - July/August 2022 - If Caught Off Guard by A Failure
PLANADVISER - July/August 2022 - Larry E. Crocker
PLANADVISER - July/August 2022 - Cover3
PLANADVISER - July/August 2022 - Cover4
https://www.planadviserdigital.com/planadviser/july_august_2022
https://www.planadviserdigital.com/planadviser/may_june_2022
https://www.planadviserdigital.com/planadviser/industry_leader_awards_2022
https://www.planadviserdigital.com/planadviser/march_april_2022
https://www.planadviserdigital.com/planadviser/january_february_2022
https://www.planadviserdigital.com/planadviser/november_december_2021
https://www.planadviserdigital.com/planadviser/september_october_2021
https://www.planadviserdigital.com/planadviser/july_august_2021
https://www.planadviserdigital.com/planadviser/may_june_2021
https://www.planadviserdigital.com/planadviser/march_april_2021
https://www.planadviserdigital.com/planadviser/january_february_2021
https://www.planadviserdigital.com/planadviser/november_december_2020
https://www.planadviserdigital.com/planadviser/september_october_2020
https://www.planadviserdigital.com/planadviser/july_august_2020
https://www.planadviserdigital.com/planadviser/may_june_2020
https://www.planadviserdigital.com/planadviser/march_april_2020
https://www.planadviserdigital.com/planadviser/january_february_2020
https://www.planadviserdigital.com/planadviser/november_december_2019
https://www.planadviserdigital.com/planadviser/september_october_2019
https://www.planadviserdigital.com/planadviser/july_august_2019
https://www.planadviserdigital.com/planadviser/may_june_2019
https://www.planadviserdigital.com/planadviser/march_april_2019
https://www.planadviserdigital.com/planadviser/january_february_2019
https://www.planadviserdigital.com/planadviser/november_december_2018
https://www.planadviserdigital.com/planadviser/september_october_2018
https://www.planadviserdigital.com/planadviser/july_august_2018
https://www.planadviserdigital.com/planadviser/may_june_2018
https://www.planadviserdigital.com/planadviser/march_april_2018
https://www.planadviserdigital.com/planadviser/january_february_2018
https://www.planadviserdigital.com/planadviser/november_december_2017
https://www.planadviserdigital.com/planadviser/september_october_2017
https://www.planadviserdigital.com/planadviser/july_august_2017
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