Pensions

At RBGLP, we are committed to delivering innovative solutions that address the unique challenges faced by pension funds as they integrate Environmental, Social, and Governance (ESG) considerations into their management, policies, and decision-making processes. By helping pension schemes align with good governance and ESG principles, we enable our clients to meet their fiduciary responsibilities while contributing to sustainable development in Zambia, Africa, and beyond.

The Issue

ESG considerations are reshaping the way pension funds operate and invest, impacting them across four critical levels:

1. Fund Management and Governance: Ensuring that the fund itself is governed in a way that aligns with ESG principles.
2. Service Providers: Evaluating the ESG policies and practices of the fund’s service providers.
3. Investment Activities: Integrating ESG risks and opportunities into investment decision-making processes.
4. Sponsoring Employers: For defined benefit (DB) schemes, assessing how ESG factors influence the financial strength and sustainability of sponsoring employers.

While the debate around the extent to which pension funds can or should use their financial power to address social, political, or intergovernmental goals continues globally, the recognition of ESG as a legitimate financial consideration is growing. This alignment creates opportunities to harness pension fund investments to address global challenges such as climate change and ethical business practices, particularly where these align with the United Nations Sustainable Development Goals (SDGs).

What We Do

At RBGLP, helping pension clients achieve good governance is central to our advisory practice. We understand the complexities of pension fund management and the increasing regulatory focus on ESG, and we provide comprehensive legal and strategic support to address these challenges.

Our Services Include:

1. Governance and Compliance
   • Advising on robust governance procedures, fiduciary duties to beneficiaries, and the proper selection of trustees or directors.
   • Ensuring compliance with local and regional pension regulations, as well as ESG-related disclosure requirements.
2. Proactive Policy and Regulation Navigation
   • Helping clients stay ahead of evolving regulatory frameworks by leveraging our involvement with pension industry bodies and public policy advocacy.
   • Advising on the impact of regional and global regulatory developments, such as reporting under the Task Force on Climate-Related Financial Disclosures (TCFD).
3. ESG Policy Development and Communication
   • Supporting clients in developing and documenting ESG policies that align with regulatory expectations and stakeholder values.
   • Assisting in transparent communication of ESG policies to service providers and fund members to enhance trust and engagement.
4. Investment Strategy Support
   • Advising defined contribution (DC) pension schemes on the selection of ESG-oriented funds and setting ESG investment criteria for default funds.
   • Guiding trustees on integrating ESG into the broader scheme management and investment process.
5. Dispute Resolution and Risk Management
   • Addressing disputes and legal issues arising from increased pressure on trustees to prioritise ESG considerations.
   • Mitigating risks associated with ESG-related obligations and regulatory compliance.

Our Impact

RBGLP has partnered with pension fund clients across industries to help them achieve their governance and ESG investment goals. Our contributions include:

• Policy Development: Assisting pension funds in Zambia and the sub-region in developing and documenting ESG policies tailored to their unique contexts.
• Investment Guidance: Advising DC pension schemes on the integration of ESG criteria in investment fund selection, ensuring compliance with best practices.
• Stakeholder Engagement: Supporting master trusts and other pension entities in responding to calls for more transparent and sustainable investment policies.
• Regulatory Compliance: Helping trustees comply with ESG-related disclosure requirements and incorporate ESG considerations into their decision-making processes.

Why RBGLP?

RBGLP offers a unique combination of local expertise and global perspective, ensuring that our clients are equipped to navigate the complexities of pension fund governance and ESG integration.

Our Value Proposition:

• Tailored Solutions: Providing advice that reflects the unique regulatory and economic environment of Zambia and Africa.
• Comprehensive Expertise: Offering support across all aspects of pension fund management, from governance to investment strategy.
• Proactive Approach: Helping clients anticipate and respond to regulatory developments and stakeholder expectations.

Driving Change Through Responsible Pension Management

The integration of ESG considerations into pension fund governance and investment strategies represents a powerful opportunity to drive positive change while meeting fiduciary obligations. At RBGLP, we are proud to partner with pension funds and trustees who are committed to fostering sustainability, good governance, and long-term value creation.

Partner with RBGLP to align your pension fund with ESG principles and contribute to a sustainable future for Zambia, Africa, and beyond.