Issue Number 4 –  Published Autumn 07

Welcome to the UK Social Investment Forum's quarterly update for pension funds and their advisers. It is produced as part of UKSIF's Sustainable Pensions Project which assists occupational pension funds to adopt more responsible and sustainable investment strategies.

UKSIF launches groundbreaking report on UK pension funds  'Responsible Business: Sustainable Pension' considers the responsible investment practices of UK companies listed in the FTSE4Good UK Index and in the Carbon Disclosure Leadership Index. Click here for a copy of the report.

UKSIF publishes readers' guide to public pension fund report 
The Readers' Guide has been produced to assist readers in understanding the case studies featured in 'Responsible Investment in Focus: How leading public pension funds are meeting the challenge', which was published earlier this year. Click here for a copy of the Readers' Guide.

1. UK PENSIONS

Environment Agency PF awards sustainable bonds mandate
The Environment Agency has awarded Royal London Asset Management (RLAM) a £55m corporate bonds mandate with SRI criteria imposed on selected investments. EIRIS will provide data and support to RLAM in implementing the Fund's SRI strategy. Visit www.environmentagency.gov.uk.

Lothian urged to divest from arms companies                 Edinburgh Council has been discussing a motion to ask that Lothian Pension Scheme, the fund for Council employees, divest from arms companies. Visit www.lpf.org.uk.

Shortlist for 2007 Pension Scheme of the Year SRI Award      Shropshire County Council Pension Fund, Strathclyde Pension Fund and Universities Superannuation Scheme have been shortlisted in the category 'Best Use of SRI' in the Pension Scheme of the Year 2007 Awards. Visit www.professionalpensions.com.

2. INTERNATIONAL PENSIONS

PGGM invests in sustainable forestry
Dutch pension fund PGGM has awarded its first sustainably managed forestry plantations mandate. The mandate, awarded to US asset manager GMO, is for an investment of around $200m for a term of 15 years. Visit www.pggm.nl.

Danish and Irish funds appoint Equity Ownership Services                                                                                      The Danish fund PKA and the Irish National Fund, NPRF, have engaged Hermes to carry out shareholder responsibilities on behalf of their global equity interest. Visit www.hermes.co.uk.

CalPERS increases its shareowner activism                            The California Public Employees Retirement System (CalPERS) filed nearly twice as many corporate shareowner proposals in the 2006-07 fiscal year as in the previous 12 months. The pension fund filed 33 shareowner proposals as of June 30, 2007 compared with 17 for the previous year. Visit www.calpers.ca.gov.

3. COLLABORATIVE INITIATIVES BY PENSION FUNDS

PRI progress report published                                                  The Principles for Responsible Investment's 'PRI Report on Progress 2007' was produced using an assessment tool developed by Mercer. Key findings include that 82% of asset owners and 88% of investment management signatories conducts some form of shareholder engagement on ESG issues. The London Pension Fund Authority is a recent signatory to the PRI. Visit www.unpri.org.

NAPF publishes 2007 survey on engagement                       'Pension Funds' Engagement with Companies 2007' received responses from 39 of the UK's largest pension funds. More than three quarters of the funds claim to have influenced corporate behaviour by engagement and 20 claim to have influenced environmental or social policies. Visit www.napf.co.uk.

IIGCC to launch electricity utilities disclosure framework      The Institutional Investors Group on Climate Change (IIGCC) launched its disclosure framework for the electricity utilities sector at an event in London on 12 September. Visit www.iigcc.org.

LAPFF urges Government to toughen emissions targets         The  Local Authority Pension Fund Forum (LAPFF) has encouraged the Government to adopt higher targets than the proposed legislation which calls for a 60% cut in carbon emissions by 2050. LAPFF has also published a trustee guide on 'Unlocking Human Capital'. Visit www.lapfforum.org.                                                                             

CDP5 Report launched                                                               The fifth report from the Carbon Disclosure Project was launched in New York in late September. Former US President Bill Clinton spoke at the launch event. CDP5 generated the highest ever response rates from the companies contacted on behalf of its 315 signatories, who hold combined assets of $41 trillion. 77% of the FT500 answered the CDP questionnaire and provided detailed disclosure on carbon emissions and the risks and opportunities it presents. Visit www.cdproject.net.

Conservative Commission proposes funds consider climate change                                                                                        The final report of the Quality of Life Policy Group, chaired by John Gummer and Zac Goldsmith, has proposed that pension fund trustees be required to take climate change considerations into account. Visit www.conservatives.com.

UKSIF is grateful for financial support from Esmée Fairbairn Foundation for the Sustainable Pensions Project.

For more information about the project or past copies of this newsletter, please contact UKSIF's Sustainable Pensions Adviser Anne Desgagniers at anne.desgagniers@uksif.org.

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