Ethical investment: News
Pension funds "failing in their duty" on Responsible Investment 30/08/2006
Author: Lianna Brinded
FairPensions, the campaign for Responsible Investment, warned that most UK pension funds have failed to keep up with changes affecting its duty towards its members' ethical interests.
The warning comes as FairPensions launches a best practice guide for pension fund trustees, outlining why Responsible Investment has become a fiduciary duty.
The guide presents a strong legal, financial and PR case for funds to review its Responsible Investment practices, and condenses a variety of sources from legal and industry bodies and the Myners Principles into an easily digestible document. The guide also sets out the basic steps necessary to ensure compliance with best practice on Responsible Investment.
FairPensions urges UK pension funds - worth £725 billion - not to disinvest, but to use their shareholder power to engage with the companies they own to improve their social, environmental and ethical behaviour.
In addition to providing information for pension fund trustees, FairPensions is beginning a major public campaign to educate fund members and to act as an advocate for those who wish to see their own fund adopt Responsible Investment best practice.
Alex van der Velden, Executive Director of FairPensions, said "Responsible Investment can no longer be left to the whims of fund managers. Pension funds need a clear policy of engaging with the companies they own, in line with the wishes of their own members. People are increasingly unwilling for their own money to tacitly support environmental and human rights abuses."
The Responsible Investment Trustee Best Practice Guide is available on the FairPensions website at www.fairpensions.org.uk
