Dalriada Trustees has committed to reaching net-zero carbon emissions across the pension schemes where it acts as a sole trustee by 2040, alongside a number of interim targets.

In particular, the trustee services provider has committed to reviewing all schemes’ investment portfolios where it holds a sole trustee role with the aim of cutting the carbon emissions of investments by 25 per cent by 2025 and by 60 per cent by 2030.

It will also carry the policy intent on net-zero investments into discussions where it does not act as sole trustee but rather acts as a co-trustee.

In addition to its own net-zero targets, the firm has outlined its expectations for investment managers and other service providers on environmental, social and governance (ESG) standards, including being a signatory to the UN Principles for Responsible Investments (PRI).

Dalriada’s parent company 3173 Limited has also committed to adhering to these standards across all group companies.

Dalriada acknowledged, however, that the “market is not well positioned to deliver the data that trustees need” to make informed decisions, stating that it expects to work with investment advisers and managers to create the right data feeds over the coming months and years in light of this.

Once this data has been put in place, the provider expects, through engagement and where necessary replacement of providers and products, to be able to deliver on its objectives.

Commenting on the plans, Dalriada Trustees director responsible for investor, David Fogarty, said: “As a leader in professional trusteeship Dalriada Trustees believes it needs to take a progressive position with respect to the environment and wider social considerations.

“We routinely make decisions on behalf of pension scheme members, where we act as trustee, on both the assets that schemes invest in and the providers that supply services to the schemes.

“We believe that all such decisions will be enhanced by integrating ESG considerations. It is our strong view that companies addressing and managing ESG factors impacting their business will provide better outcomes for their shareholders and other stakeholders over the long term.”

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