So you still think Environmental, Social and Governance (ESG) issues are not terribly ‘gritty’? Think again. Under the auspices of an ESG issue brief, MSCI – whose indices and analytical information help investors build and manage portfolios – recently published a report on concerns around the under-funding of global pensions.
Its results are startling. The ratio of under-funding is worst in North America, followed by Europe.Britain’s BT has a whopping 36% gap between its pension obligations and the resources set aside to fund them, second behind America’s DuPont, which has an even larger 42% funding gap. BT has around £50 billion ($62.4bn) of underlying pension liabilities, the largest of any U.K. company.