Issue Number 3 –  Published Summer 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.

New report highlights inspiring pension funds
'Responsible Investment in Focus: How leading public pension funds are meeting the challenge' is a practical report that aims to inspire more pension funds to deepen their responsible investment practices. It gives fifteen pension fund case studies from across the world which show some of the most advanced and creative approaches currently being adopted. The report was produced jointly by UKSIF's Sustainable Pensions Project and the UNEP Finance Initiative Asset Management Working Group. Click here to download the report.

UKSIF Sustainable Pensions Library launched                      UKSIF's Sustainable Pensions Library brings together key documents and initiatives on responsible investment for occupational pension funds. It also includes particularly relevant books and research papers. See www.uksif.org/splibrary.

1. UK PENSIONS

Lewisham council pension fund to survey members on SRI
The £600 million fund plans to send out a questionnaire to pensioners and active members to gauge their views on socially responsible investment (SRI) issues. Visit www.lewisham.gov.uk.

UK investors receive settlement from Shell                          
UK investors including Universities Superannuation Scheme (USS) have participated in a $450 million pan-European class action settlement with Shell. The settlement relates to Shell's 2004 restatement of reserves. It is believed to be the first class-wide settlement claim by European institutional investors. Visit www.shellsettlement.com.

2. INTERNATIONAL PENSIONS

FRR awards sustainable PE mandates
The French Reserve Fund (FRR) has awarded private equity mandates to Pantheon Ventures, Access Capital Partners and Lehman Brothers. The mandates comply with the FRR's SRI principles and exclude participating in hostile takeovers or investing in countries listed by the Financial Action Taskforce (GAFI). Visit www.fondsdereserve.fr.

TIAA-CREF publishes new ESG policy statement                TIAA-CREF, the $406 billion US pension service has published a new statement which puts social and environmental issues on a par with corporate governance for the first time. The statement acts as a guide for the fund's investment managers. Visit www.tiaa-cref.org.

ABP and PGGM announce landmines divestment               Dutch pension funds ABP and PGGM have announced they are divesting from companies which produce landmines. PGGM also plans to divest from cluster bomb producers. Visit www.abp.nl and www.pggm.nl.

ABP and PGGM create €500 million clean tech joint venture The two funds have issued a €500 million mandate to AlpInvest (a 50/50 joint venture) to invest in clean technology and renewable energy companies. Visit www.abp.nl.

3. COLLABORATIVE INITIATIVES BY PENSION FUNDS

UN PRI hits $8 trillion mark on first year anniversary              On its first anniversary the United Nations' Principles for Responsible Investment announced that it had achieved over 180 leading institutional signatories, representing in excess of $8 trillion in assets under management. Visit www.unpri.org.

Pharma Futures report on pharma industry                       'Pharma Futures: Prescription for Long-Term Value' is the result of a structured dialogue between pension funds and pharmaceutical executives to discuss how to achieve a better alignment between societal and shareholder needs. Pharma Futures is convened by 3 pension funds: ABP, OPERS and USS. Visit www.pharmafutures.org.

CONSULTANTS

Watson Wyatt finds pension funds can meet fiduciary duties through sustainable investment                                                The 'Sustainable Investment' report argues that pension fund managers can engage in sustainable investment strategies and might see long-term investment potential as a result. Contact jane.goodland@watsonwyatt.com.

Mercer IC produces Responsible Investment glossary          'The language of responsible investment' seeks to help investors better understand global Responsible Investment terms. Visit www.merceric.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 Andrea Krug at andrea.krug@uksif.org.

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