GLOBAL - An initiative created by pension giants APG, PGGM, CalPERS and the New Zealand Superannuation Fund (NZSF) has been unveiled on behalf of 52 pension funds and other institutional investors urged almost 9000 companies to subscribe to the UN Global Compact.
The 52 investors, which have combined invested assets of $4.4bn (€3.54bn) have written to the companies, which are part of the MSCI All-World, the FTSE All-World and the S&P/IFC Emerging Markets indices, asking them to sign the principles on corporate social responsibility.
The group of investors taking part in the initiative all underwrite the UN's Principles for Responsible Investments (PRI) and part of that push is to persuade companies who have yet to signed the compact, including established brands such as Aegon, Aon, Kelloggs, Trinity Mirror, Marriott International and Apple Inc, to alter their corporate governance positions.
Rob Lake, head of sustainability at APG, noted institutional investors are looking to invest in companies that deliver good, long-term returns, especially in the current financial market turmoil.
"It is our opinion that companies who heed environmental problems, social issues and corporate governance measures will deliver such returns before others," said Lake.
"As actual and potential shareholders in such companies, we want to insist they take action," he added.
According to Marcel Jeucken, manager responsible investments at PGGM, the UN Global Compact gives companies a framework of broadly-accepted standards which they can apply when trying to deal with environmental, social and governance (ESG) issues.
"Participation in the UN Global Compact gives investors a strong signal that companies are aware of the business implication of ESG-issues, as well as taking active steps to implement these in their strategy and risk management," concluded Jeucken.
The UN Global Compact is a strategic policy initiative for businesses that are committed to aligning their operations and strategies with 10 universally-accepted principles in the areas of human rights, labour, environment and anti-corruption.
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