Reports by FairPensions
FairPensions has put together a series of annual surveys to examine the UK's top Pension Funds and Investment managers. These surveys form benchmarks for industry in the fields of engagement, responsible investment (RI) and transparency, and are in line with our Best Practices Guide.
Survey of Transparency among the largest 20 UK Pension Funds, December 2007
Executive Summary of Report on Engagement and Transparency among the top 20 Fund Managers, October 2007
Full Report on Engagement and Transparency among the top 20 Fund Managers, October 2007
Survey of Transparency among the largest 20 UK Pension Funds, November 2006
Our methodology is important: the process of creating this survey provides FairPensions with the opportunity for dialogue on Responsible Investment and transparency issues with those surveyed. Though some prefer not to participate, and we note when they have not, this annual overview has seen a remarkable willingness on behalf of Pension Funds and Investment Managers to improve their Environmental, Social and Governance practices. The scale of our success in convincing pension funds to adopt responsible investment is evident from the discussions we have had with many funds, and the preliminary results from our 'Survey of Transparency and Engagement among the largest 20 UK Pension Funds' due in November 2007 indicates that many pension funds have substantially improved their transparency and engagement since our first survey in 2006.
Best Practice and legal arguments for Responsible Investment
FairPensions has drawn up a guide which highlights the growing legal, financial and PR case for adopting responsible investment, and lays out the neccesary steps for ensuring best practice.
Read our Best Practice Guide for Pension Fund Trustees
One of the arguments that Pension Fund trustees used to put forward for failing to adopt responsible investment was that the case of Cowan v Scargill (1984) had shown that attempts to do anything other than maximise returns for the pension fund was a breach of fiduciary duties (the responsibilities that pension fund trustees take on, which include things like being prudent with the money entrusted to them). A legal opinion published by the Law Firm Freshfields Bruckhaus Deringer on behalf of the United Nations Environment Programme's Finance Initiative (UNEP FI), however, concluded that Cowan v Scargill has been misinterpreted - and that failing to take Environmental, Social and Governance issues into account while investing pension fund money could, in itself, count as a breach of fiduciary duties.