Authored by Tom Powdrill, ITF responsible investment co-ordinator, 'Who’s responsible? Pension funds and respect for workers’ rights' looked at the responsible investment policies of 100 of the largest funds in Europe.
It found that while most are adopting responsible investment policies that protect and promote workers’ rights, around a third still have to achieve their full potential to improve lives. While most pension fund policies in many countries refer to international labour rights standards, the UK accounts for two thirds of the group that does not – particularly worrying given that it has the largest pool of retirement assets in Europe.
Mr Powdrill said: “The ITF applauds the widespread take up of responsible investment policies by pension funds. They’re a key form of social responsibility – and an implicit recognition that funds play a part in assisting workers both before and after retirement.
“Motivated by that, we investigated how many of them were putting theory into practice and promoting workers’ rights. The results were surprising. Core labour standards are being upheld by two thirds of the 100 largest funds in Europe – but one third, many of them based in the key fund arena of the UK, are sitting on their hands.”
Another key finding was the power and prevalence of the ‘capital strike’: where funds respond to concerns about companies’ treatment of workers. It identified funds, representing a massive EUR 2 trillion, who refuse to invest in Wal-Mart, while six funds, representing EUR 287 billion, won’t touch Rynanair.
ITF president Paddy Crumlin commented that pensions money was the hard-earned product of hard work and it was only right that it helped build sustainable individual and collective futures – and did so ethically.
