The UK Investment Consultants Sustainability Working Group (ICSWG) has published an updated Climate Competency Guide, aiming to support asset owners with evaluating their investment consultants.

The guide outlines five themes against which asset owners can ask their investment consultants to demonstrate their competence in advising on climate-related issues.

Although it is not intended to be prescriptive, the guide sets out examples of typical and leading indicators that can support asset owners in their own evaluation of investment consultants.

The ICSWG’s initial guide was published in 2021, with the updated version including expectations that were aspirational when the original guide was published, but are now generally considered a core part of investment consultants’ offerings.

The group said that the updated guide captured changes in what may be expected of leading consultants by recognising the growth in understanding of climate issues and the evolving expectations of advisers.

Its guide aims to recognise the role investment consultants can play in supporting asset owners in keeping up to date with changing regulatory expectations and the ‘complex interplay’ of climate competency with related environmental/natural and social factors.

While updating the guide, the ICSWG consulted with industry stakeholders, including The Pensions Regulator, Pensions UK, and the Trustee Sustainability Working Group.

“This guide provides examples of how investment consultants can demonstrate that their firm and staff have the expertise, tools and thought leadership to support asset owners when assessing climate related risks and opportunities,” commented Mercer client director and ICSWG workstream chair, Helen Prior.

“We hope the refresh and fresh input from the trustee side helps to keep it relevant for asset owners in 2026 and beyond.”

Hymans Robertson head of responsible investment and ICSWG co-chair, Simon Jones, added: “As the understanding of climate-related issues continues to evolve, it’s important that asset owners can effectively evaluate the capabilities of those giving them advice.

“Updating the framework to reflect changing expectations is therefore vital to ensure that evolving best practice continues to be integrated into advice.

“The input we have received from asset owners and other stakeholders has been critical to this process and we hope the guide will remain a helpful and widely used resource.”

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