date: 7 November 2008

embargo: 00.01hrs Monday 10 November

FairPensions report shows need for a long term responsible approach to investment, says TUC

Responding to the FairPensions report on responsible investment, which examines the track record of fund managers on environmental, social and corporate governance (ESG) issues, TUC General Secretary Brendan Barber said:

'This timely report shows the importance of taking a long term responsible approach to investment and ownership.

'The current financial crisis has painfully demonstrated the importance of good corporate governance. But this must go hand in hand with proper engagement on social and environmental risks, which also impact on the financial sustainability of pension fund investments.

'The report confirms the TUC's concern that the 'S' in ESG is often missing from investment activity. Despite the proven business benefits of good employment relationships, investors rarely discuss employment issues with company directors. By ignoring this in their engagement with company directors, investors are ignoring a significant driver of profitability and investor returns.

'Some fund managers are making progress, as the report acknowledges. And those investors who are signed up to the United Nations Principles of Responsible Investment (UNPRI) tend to be the better performers on engagement and transparency.

'The report provides a useful resource for trustees in looking at how fund managers compare on responsible investment, holding their fund managers to account on ESG issues and demanding greater transparency.'

NOTES TO EDITORS:

- Copies of the FairPensions report Investor Responsibility? Performance and accountability on 'extra-financial' risks by UK Fund Managers are available from the FairPensions press office.

- Further info is available at www.fairpensions.org.uk

TUC Media enquiries:
Rob Holdsworth T: 020 7467 1372 M: 07717 531150 E: rholdsworth@tuc.org.uk

FairPensions Media enquiries:

Duncan Exley T: 020 7403 7806 M: 07847 006 253 E: duncan@fairpensions.org.uk

Press release (300 words) issued 10 Nov 2008