The Trustee Sustainability Working Group (TSWG) has set out its priorities for 2026 as it looks to improve how sustainability is implemented across pension schemes.
The group, which was formed at the end of 2024, brings together professional trustees, member-nominated trustees and independent practitioners, aiming to invest in practice around sustainability. Climate change remains an early focus of the group’s work.
Last year, the TSWG held discussions with trustees, consultants, regulators and policymakers to understand how sustainability requirements work in practice. The group says these conversations highlighted a perception that sustainability has become a compliance led exercise with an estimated 70 – 80 per cent of trustees and consultants viewing it as a “tick-box” requirement.
In response, the group has identified three priority areas for 2026, which include proportional and purposeful sustainability reporting. The TSWG said it wants reporting requirements to better reflect the size and structure of individual schemes and to support investment decision making rather than existing primarily to meet compliance obligations.
The second is bridging what the group describes as a perception gap around sustainable investment. The TSWG aims to demonstrate that sustainability can be a financially sound approach aligned with members’ long-term interests, rather than a trade-off against returns.
The third focus is on developing scalable solutions for schemes of all sizes. The group said it is working across the investment ecosystem to challenge the view that sustainable investment is only achievable for large schemes and to help smaller schemes move beyond minimum reporting compliance.
TSWG chair Bobby Riddaway says objectives would continue to evolve during the year and reflect the majority view of its members, rather than the position of all firms represented.
The group includes trustees from a range of professional and independent firms and is open to engagement from across the pensions industry.