The challenge:

The current law on fiduciary duty is not clear. This makes it hard for pension schemes to be confident they have a valid legal basis for looking at investment issues that can improve savers’ outcomes overall – issues like investing in the UK economy, health, the wider environment and skills.

Our proposal:

We have been working with Andy Lewis and Stuart O’Brien of Sackers, along with Impact Investing Institute and other key partners and stakeholders, on a proposal for legislation that would resolve this. It would clarify fiduciary duty, providing a legally permitted framework that enables pension schemes to take account of relevant wider issues when investing.

This creates stronger legal foundations, empowering pension schemes to act. It complements many of the policy objectives already in the Pension Schemes Bill 2025.

Why it matters:

• Clarifying fiduciary duty allows trustees to invest in assets that strengthen both portfolios and the economy members will retire into.
• Considering members’ living standards, systemic risks and member views is fundamentally part of fiduciary responsibility.
• Members’ real retirement outcomes depend on the world they retire into; pensions are about real value in retirement, not just cash pots.
• Delivers significant economic benefits while preserving trustee autonomy and investment decision-making.
• Fixes the “plumbing” of pensions to allow capital to flow and create an even playing field for schemes to invest with confidence.