UKSIF calls for transparency on ESG investments
UK - Pension funds should disclose how their responsible investment schemes are being implemented, according to UKSIF.
In a report published to coincide with the 10-year anniversary of environmental, social and corporate governance (ESG) regulation in the UK, the organisation also predicted web-based disclosure for responsible investments by pension funds would become commonplace.
Penny Shepherd, chief executive at UKSIF, said: "We are fast approaching a tipping point when responsible investment will become the norm for major investors worldwide.
She added that this could only be achieved with the help of governments and asset owners.
Shepherd said there was a growing interest in where investments were being made, highlighting the recent Gulf of Mexico oil spill as an event that could be used to call for change.
The report added trustees would soon be expected to understand sustainable investments.
UKSIF also called for all local government pension schemes to adhere to the UN Principles for Responsible Investing and predicted the National Employment Savings Trust would lead by example and implement the guidelines.
Additionally, it urged NGOs to help consumers scrutinise investment decisions made by both pension funds and insurers.
Shepherd added: "Responsible ownership and investment will become the norm for major occupational pension funds, insurance companies and other significant investors worldwide by 2020."