DWP Taskforce Launches Social Factors Consultation

In July 2022, as part of its response to the Consideration of social risks and opportunities by occupational pension schemes consultation, the DWP announced the launch of a new minister-led taskforce to ensure that focus on social factors continues to grow throughout the investment chain.

On October 19, 2023, the DWP's Social Factors Taskforce published its Issues Guide for consultation, which includes more than 30 suggestions for the UK pensions sector about how it can better incorporate social factors into investment decisions. The recommendations include the following targeted areas:

• Pension scheme trustees. Pension trustees should ensure their asset managers consider social factors and integrate them into their investment strategy and stewardship. The guide sets out example "request for proposal" questions and mandate terms. Further guidance from the DWP, the Pensions Regulator and the Financial Conduct Authority (FCA) on social factor