Log in
Show password
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 
  1. Homepage
  2. Equities
  3. United Kingdom
  4. London Stock Exchange
  5. XPS Pensions Group plc
  6. News
  7. Summary
    XPS   GB00BDDN1T20


SummaryMost relevantAll NewsOther languagesPress ReleasesOfficial PublicationsSector news

Title: UK fund management industry demonstrates strong progress in ESG risk management in 2021, but improvements are still needed

09/08/2021 | 04:42am EDT
UK fund management industry demonstrates strong progress in ESG risk management in 2021, but improvements are still needed
  • 23% of UK investment funds awarded an XPS green rating for ESG, up from 10% last year.
  • However, greenwashing remains a risk with 26% of equity funds unable to provide any examples of ESG being incorporated into decision making.
  • The findings come from XPS Investment's ESG ratings Review 2021, which assessed 54 fund managers across 199 funds on their ESG risk management processes.

The results of the review find fund managers have continued to respond to institutional investor demand for better ESG management, with 23% of funds now awarded an XPS green rating for ESG, up 10% from 2020. There are some clear areas of improvement, for example in relation to stewardship by fund managers as well as significant progress in terms of carbon footprint reporting. Notably, fixed income funds were able to most consistently evidence robust integration of ESG compared to other asset classes.

Private markets are beginning to make some headway in factoring in ESG to decisions, albeit from a low base. Last year only 60% of funds referenced ESG in their investment policy, whereas this year all of them did.

Nevertheless, there are some clear areas for improvement, and greenwashing remains a risk. For example, there is evidence found of strong firm-level messages not being backed up by fund investment decision making - 62% of active equity managers scored green for firm-level philosophy, while only 10% were rated green for ESG within the specific fund. Furthermore, we found significant dispersion of scores between asset classes for a given manager, indicating that whilst the overall firm philosophy score may suggest a commitment to considering ESG risks, there was weaker ESG within investment processes in practice.

In addition, we found many funds (11% of all funds, and 26% of equity funds) were unable to provide any examples of E, S or G factors being taken into account in investment decisions, raising legitimate concerns over whether the ESG processes being described are being applied in practice.

To raise standards across the board, XPS believes fund managers should:

  • Commit to robust consideration of ESG and climate change risks into their existing strategies, so that actions in practice mirror the strong firm-level policies.
  • Utilise power as providers of finance through stewardship to drive positive outcomes in companies.

For Pension Schemes the findings here emphasise the need for Trustees to:

  • Take time to clarify their own beliefs and priorities around ESG
  • Challenge their investment consultants to undertake thorough due diligence of their portfolio to ensure ESG practices of their managers are aligned to the scheme's objectives
  • Engage with managers to ensure effective stewardship
  • Make changes to the portfolio if needed and consider the use of sustainable funds which go beyond the minimum expected standards of ESG integration.

Commenting on the findings Simeon Willis, Chief Investment Officer, at XPS said: 'While the findings clearly show that there is a lot more work to do, it is promising to see that fundamental parts of a good ESG strategy are being put in place across the board. Effective ESG risk management must be underpinned by a clear ESG philosophy, and most firms now have this essential foundation in place. But managers must move beyond words to actions for this to matter, and this needs to be consistent across all their funds and be well communicated to clients.'

Alex Quant, Head of ESG research at XPS added: 'We are particularly pleased to see private markets begin to show signs of progress when it comes to ESG. It points to demand from asset owners for information and change. As scrutiny continues to grow, fund managers will increasingly be compelled to reveal what they are doing in practice.'


XPS Pensions Group plc published this content on 08 September 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 September 2021 08:41:01 UTC.

© Publicnow 2021
10/14FTSE Gains, Softer Stance in BOE Rate-Setters Speeches Could Steepen Gilt Curve
10/14XPS Pensions Group plc Reports Revenue Results for the Six Months Ended 30 September 20..
10/13TITLE : Transfer Values slip from recent highs as pension scam index falls for fourth mont..
10/08TITLE : Stagflation on the horizon? Global supply chain issues stall recovery
10/06TITLE : XPS Pensions Group DB:UK Tracker - Pension scheme funding levels improve by £34bn ..
10/04TITLE : Member outcomes under freedom and choice survey 2021
10/04TITLE : Record transfer values lead to highest average fees following transfer for DB pens..
10/01TITLE : Putting in place a low-cost receiving vehicle for member transfers
10/01TITLE : Putting in place a low-cost receiving vehicle for member transfer
09/29TITLE : Pension Schemes Act 2021 – DWP consults on changes to notifiable events regi..
More news
Sales 2022 136 M 187 M 187 M
Net income 2022 13,2 M 18,1 M 18,1 M
Net Debt 2022 55,1 M 75,7 M 75,7 M
P/E ratio 2022 24,8x
Yield 2022 5,14%
Capitalization 274 M 376 M 377 M
EV / Sales 2022 2,42x
EV / Sales 2023 2,26x
Nbr of Employees 1 325
Free-Float 85,4%
Duration : Period :
XPS Pensions Group plc Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends XPS PENSIONS GROUP PLC
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus BUY
Number of Analysts 5
Last Close Price 1,35 GBX
Average target price 175,80 GBX
Spread / Average Target 12 922%
EPS Revisions
Managers and Directors
Benjamin Oliver Bramhall Co-Chief Executive Officer & Executive Director
Paul Gareth Cuff Co-Chief Executive Officer & Executive Director
Snehal Shah Chief Financial Officer & Executive Director
Tom Cross Brown Independent Non-Executive Chairman
Chris Sanders Director-Information Technology
Sector and Competitors