Do you have any other questions? Send them to FairPensions by clicking here.
Need any investment or pension related terms explained? Take a look at our glossary.
1. What is responsible investment?
Responsible investment is also known as socially responsible investment (SRI) or ethical investment. It covers a variety of approaches that incorporate social, environmental and ethical concerns into the way investments are managed. The main reasons responsible investment strategies are implemented are to enhance returns and give investors ways to save ethically. Screening and engagement, explained below, are two key strategies used by ethical investors.
2. Does a responsible investment policy mean disinvestment from unprincipled companies?
Not necessarily, it's just one approach to holding companies to account. Most pension funds which have responsible investment policies continue to invest in companies whose environmental or human rights records have been questioned, but use their shareholder position to get the companies to improve their behaviour. This practice is known as engagement or shareholder activism (see glossary).
3. Will my pension fund lose money if it is invested ethically?
Research shows that responsible investment can have a positive impact on financial returns, because ethical issues tend to become financial issues (for example, a company which uses child labour may be boycotted, causing its investors to lose money). Click here to read the research and facts on how responsible investment can affect performance. Please note that the contents of this website do not constitute financial or legal advice and FairPensions does not promote or endorse any third party investment, financial service, company or any other third party product or service.
4. How do I do find out if my pension fund is a responsible investor?
The best way is to ask them! You can use our website to email your pension fund about responsible investment. Pension funds are now legally obliged to share this information with members, following an amendment to the 1995 Pensions Act
5. Although I don't have my own pension, I'd like to help promote responsible investment. Is there anything I can do?
You can add your voice to the call for responsible investment, and simultaneously sign up for our newsletters or e-updates. We are a small organisation with a limited budget, so any donations you choose to make would be very much appreciated!
6. Does FairPensions lobby for improved state pensions?
No, FairPensions focuses on workplace or occupational pension funds, rather than state pensions.