The UK pension industry’s trade body has decided against producing
guidelines on corporate social responsibility and socially responsible
investment.
The National Association of Pension Funds, whose members control assets
of more than £700billion ($1225bn) and account for about a sixth of
investment in the UK stock market, made the decision after ‘lengthy’
discussions on whether it should have formal policies in these areas.
In a position statement, the association says it has decided not to
have a policy or to draw up guidelines similar to those it produced on
corporate governance last year. The statement notes the ‘proliferation
of advisory services’ and says it does not believe it would be
‘helpful’ to add to these by introducing guidelines. It does however
urge pension scheme trustees to ensure investment managers take account
of CSR.
Mark Mansley, strategy manager at Rathbone Greenbank Investments, which
provides SRI advisory services for pension funds, told EP the decision
not to produce guidelines ‘probably reflects the wide-ranging,
different views of CSR and SRI among pension funds, and the fact that
reaching a consensus was too difficult at this stage’.
He added that the statement ‘does go some way towards a policy because
it says, for instance, that boards should develop and disclose CSR
policies and that SRI should be integral to the investment
management process’.
The UK Social Investment Forum welcomed the statement, but said many of
its members would still urge NAPF to produce guidance on governance
matters such as executive pay.
