Responsible Investment

FairPensions advocates that Pension Funds and investment managers adopt a Responsible Investment (RI) approach to their investment portfolio. Responsible Investment by pension funds can bring significant rewards, and there are simple steps towards best practice (as outlined in the FairPensions best practice guide found here).

- Clear positions and policies on specific issues.

- Transparency and monitoring of implementation and process.

- Clear guidelines on all investment mandates.

There are numerous examples of situations where trustees have not followed these guidelines. Failing to provide clear mandates to fund managers may not only result in lost returns but can also constitute a breach of fiduciary responsibilities. These instances could be remedied by providing specific mandates and clear guidelines on all policies, including environmental, social and governance (ESG) issues.

Responsible Investment differs from the recent trend of funds having Ethical Investments, as Responsible Investment isn't a type of product but is an entire approach to investments. Ethical funds were developed as a boutique range of investments targeting the ethical consumer. Responsible investment, on the other hand, refers to the good practice of taking ESG issues into account when making all investments.

• Responsible Investment
• RI Best Practice
• Our Work with Trustees
• RI Research