MP's Pension fund urged to commit to responsible investment

Published on Thursday, 20 September 2012 11:20
Posted by Scott Buckler

Caroline Lucas, Green Party MP for Brighton Pavilion, and the UK Sustainable Investment and Finance Association (UKSIF) have called on the Parliamentary Contributory Pension Fund (PCPF) to commit to the UK Stewardship Code

The Code, which is voluntary, aims to enhance the quality of engagement between institutional investors and companies, to help improve long-term returns to shareholders and ensure good corporate governance.

The PCPF has not made a public commitment to the Code since its publication in July 2010.

The Green MP and the influential trade body have together written to Brian Donohoe MP, Chairman of the Board of Trustees of the PCPF, requesting a meeting to make the case for the Fund's signature.

Caroline Lucas MP said:

"Most people would be appalled if they thought their pensions were being invested in corporations with, for example, poor records on human rights or environmental protection.

"By signing the MP pension fund up to the UK Stewardship Code, Parliament can demonstrate its commitment to sustainability and transparency, and really lead by example in responsible investment.

"Since the Code operates on a 'comply or explain' basis, we look forward to the PCPF's response to this letter – either to confirm that it will sign up or explain why it isn't willing to."

Penny Shepherd MBE, UKSIF Chief Executive, added:

"There are currently approximately 250 signatories to the Stewardship Code, including other public service pension schemes such as the London Pensions Fund Authority, the Environment Agency Active Pension Fund and the Pension Protection Fund, and we call upon the PCPF to join them."

"The Code has been operating for over two years now and is respected within the investment community. The PCPF's adherence would clearly signal Parliament's commitment to responsible asset ownership."

Source: ©UKSIF

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