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August 03, 2000
British Fund Managers Examine Company Social and Environmental Performance
In a series of seminars sponsored by the UK Social Investment Forum, pension fund managers come up
to speed for new disclosure law.
SocialFunds.com --
While U.S. social fund managers have spent painstaking years conducting their social research
behind closed doors, pension funds in the UK have good reason to gather intelligence on company
social performance in an expeditious manner. A new law has many funds beefing up their social
research efforts, prompting a series of intensive seminars launched by the UK Social Investment
Forum.
 The new Pension Fund Disclosure
Regulation, in effect since July 3, requires all pension fund trustees in the UK to disclose the
extent to which social, environmental, and ethical considerations enter into their investments.
While it does not require funds to have social investment policies, the new disclosure law
represents a major stride for social investors and a boon for responsible companies.
"Responding to the new regulation, many pension fund trustees now require fund managers to
assess the social and environmental performance of companies," said Penny Shepherd, Executive
Director of the UK Social Investment Forum, the professional association for social investors in
Great Britain. "These seminars give fund managers and analysts an effective way to compare
corporate performance within a sector on key social responsibility issues."
At the
inaugural seminar in June, hosted by a leading London stockbroker, Cazenove & Co., four companies
from the construction and building materials sector gave presentations on their environmental and
social performance. Other seminars are planned for the fall regarding the banking, food retail, and
transportation sectors.
After the presentations, the audience of over 45 fund managers and
analysts questioned the companies on their past performance and future plans relating to issues
ranging from environmental management to human rights policies. All participants agreed that the
interchange was a crucial step to building communication on corporate responsibility issues, and
that breaking down the seminars by sector was helpful.
"The senior management of all major
companies should note that pension funds are increasingly examining their environmental and social
performance," said Michael Tyrrell, Senior Analyst of the Green Department at Jupiter International
Group, which is a subsidiary of Commerzbank and manages over $19 billion in assets. "We're looking
for the investment opportunities presented by the good practitioners."
Meanwhile the
construction companies presenting at the first seminar, Aggregate Industries, Balfour Beatty,
Carillion, and Morrison Construction, stand to gain from the exposure and the critical examination
of their environmental and social policies. The four companies were chosen by fund managers on the
board of the UK Social Investment Forum, based on knowledge of their good practices.
"Carillion's chairman has briefed me to take the message of our sustainable development
performance to investors, and ultimately to see our sector-leading approach reflected in our share
price," said Sally Uren, Project Director of Carillion's Environment and Sustainability Programme.
While the UK's new Pension Fund Disclosure Regulation represents a significant government
affirmation of the goals of social investing, UK Social Investment Forum's seminars are a proactive
effort to get the maximum impact from the law. Their success will ultimately bring social investing
to a wider audience, in a hurry.
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SRI World Group, Inc. All Rights Reserved.
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