3/6/2009
By Marian Barber
A report from UKSIF, the association which promotes Sustainable Investment and Finance, indicates that Responsible Investment is growing in popularity among UK corporate pension funds, a change led by trustees.
UKSIF's survey of the pension funds of more than two hundred UK companies, Responsible Business: Sustainable Pension, awarded BT the top Platinum ranking for the second time since the bi-annual survey's inception in 2007. Barclays, BP and HBOS pension schemes all moved up from Silver to Gold. Three quarters of repeat respondents scored higher this year than in 2007.
Michael Deakin, Chairman of the UKSIF Sustainable Pensions Advisory Board, said: "Given all the challenges faced by pension fund trustees over the last two years, I find the clear signs of progress made on implementing Responsible Investment policies very encouraging."
Trustees of three quarters of surveyed funds now believe that environmental, social and governance (ESG) factors can affect a fund's performance in the long term.
Rupert Clarke, CEO of Hermes Fund Managers, explained that there is more to be done: "It is very positive to see such progress and co-operation amongst pension funds, which is the foundation stone for a truly responsible approach to asset management and ownership. We now need a similar commitment from their investment managers, to re-examine investment processes and engage more effectively with companies on their behalf."
Steve Falci, Vice President - Sustainable Investment, KBC Asset Management Ltd, added: "As pension funds navigate their course over the coming years, sustainable and responsible investment practices provide essential elements for delivering the requisite long term returns required to meet pension obligations. Investors are increasingly seeing that consideration of material environmental, social and governance issues will be an important component of future returns."
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