Why defined benefit schemes are falling behind on greening portfolios

As the dust starts to settle on last year's liability-driven investment crisis, there is an opportunity for private sector closed defined benefit schemes to embed sustainable investment principles throughout their portfolios. The increase in long-dated gilt yields throughout last year meant pension schemes needed to post collateral in order to maintain their interest-rate hedges. This became a crisis in the autumn when the budget proposed by then prime minister Liz Truss caused a rapid increase in these borrowing costs. Natalie Winterfrost, who is an independent trustee for LawDebentu...