Skip to main content

Sustainability Leaders Issue Call-to-Action to CEOs

The PRI and the UN Global Compact call for more sustainability around Corporate Pensions 

The leaders of the world's two largest corporate and investor sustainability initiatives today called on CEOs to ensure their corporate pension plans – an untapped sustainability area – adopt responsible investing policies – highlighting concrete benefits including improved investment performance, fulfilling fiduciary duty and managing regulatory risk and boosting corporate sponsor credibility.

According to a guide released today by the UN-supported Principles for Responsible Investment (PRI) and UN Global Compact, CEOs should ensure plans mirror their own sustainability values.
Aligning Values: Why corporate pension plans should mirror their sponsors includes case study examples from major corporate pension plans showing how companies have taken steps to make their plans sustainable. It also gives five steps a CEO could take to ensure their plan invests responsibly, such as signing up to the PRI.

The guide aims to mobilise an important investment sector that has remained largely dormant in terms of advances in sustainability practices. In the US alone private-sector Defined Benefit plans held USD $2.9 trillion assets at the end of 2016. The global industry is estimated at many trillions of dollars.
"While significant numbers of institutional investors and corporations are now integrating environmental, social and governance factors, corporate pension plans remain a sleeping giant", said Lise Kingo, Chief Executive Officer and Executive Director, UN Global Compact and Fiona Reynolds, Managing Director, PRI. "And when we consider the capital that will be needed to achieve the Sustainable Development Goals, the multi-trillion-dollar corporate pension industry needs to be activated to join other actors in private finance that have aligned to the 2030 Agenda".
Kingo and Reynolds noted that of the 1,700-plus signatories to the PRI, less than 50 are corporate plans.

In an effort to address this imbalance, Kingo today called on the CEOs of corporate signatories of the UN Global Compact, in their role as sponsors, to encourage their associated corporate pension schemes to adopt the PRI principles, recognising that pension scheme decision making is independent of a plan's sponsor.
"We strongly believe that corporate plans need to align with their sponsors' sustainability philosophy", said Kingo, "otherwise, investment decisions will be out of step and could actually be undermining the stated aims of the sponsoring corporation's strategy".
Reynolds added:
 "The evidence and proof now abounds: adopting responsible investing practices is not only consistent with fiduciary duty, it unlocks financial and social capital over the long term. Failing to address ESG and sustainability factors poses material risks to any pension plan".
About the Principles for Responsible Investment (PRI)
The PRI is the world's leading proponent of responsible investment. It works to understand the investment implications of environmental, social and governance (ESG) factors and to support its international network of investor signatories in incorporating these factors into their investment and ownership decisions. The PRI acts in the long-term interests of its signatories, of the financial markets and economies in which they operate and ultimately of the environment and society as a whole.

About the United Nations Global Compact
The United Nations Global Compact is a call to companies everywhere to align their operations and strategies with ten universally accepted principles in the areas of human rights, labour, environment and anti-corruption, and to take action in support of UN goals and issues embodied in the Sustainable Development Goals. The UN Global Compact is a leadership platform for the development, implementation and disclosure of responsible corporate practices. Launched in 2000, it is the largest corporate sustainability initiative in the world, with more than 9,000 companies and 3,000 non-business signatories based in over 160 countries, and more than 70 Local Networks.

- See more here

Comments

  1. This comment has been removed by a blog administrator.

    ReplyDelete

Post a Comment

Popular posts from this blog

New Executive Director of UNEP announced

Erik Solheim according to Norwegian newspapers is to be announced today as the new Executive Director of UNEP. And later today Monday the 2nd of May ABC News confirm too.

He faced stiff competition for the number one job on the environment in the UN system. In the 6 Executive Directors of UNEP it will mean that developed countries will have had 5 of them with two Canadians (Strong and Dowdeswell) and Germany (Toepfer and Steiner). The only Executive Director to come from a developing country was Dr. Mostafa Kamal Tolba who died recently.

Erik brings considerable experience to the position having held been from 2007 to 2012  the combined portfolio of Norway’s Minister of the Environment and International Development; he also served as Minister of International Development from 2005 to 2007. During his time as minister Norwegian aid reached 1%, the highest in the world.

Since January 2013 he has been the Chair of the OECD Development Assistance Committee (DAC). In the DAC he has emphasi…

Guest Blog Mike Barry: 5 things we learnt on Marks and Spencer Plan A journey over last 12 months

Guest Blog by Mike Barry:  Director of Sustainable Business (Plan A) at Marks and Spencer

It’s that time of year, publication of our annual sustainability (Plan A) report. After the harum scarum dash to gather, collate, assure, sign-off and publish a wealth of data we can breathe (for a moment!) and reflect on what it all means.
Here are some quick insights into what we’ve learnt at M&S in the last 12 months on our Plan A journey.
1. Succession – Nine years is a long time in the world of sustainable business. How many corporate plans have come and gone since we launched Plan A in 2007? Too many! The continuity offered by having a single multi-year plan has been incredibly important. It’s allowed us to take long term decisions in a very short term turbulent retail marketplace. It’s allowed us to build the skills and capabilities in our business units to integrate Plan A into their ways of working. It’s allowed us to pick our battles, knowing that occasionally we’ve just got to let a …

Bokova out? Georgieva in for next UN Secretary General

The rumors that have been circulating for the last month have now proven to be true. The Bulgarian government has withdrawn support from Irina Bokova as their candidate for UN Secretary General and replaced her with Kristalina Georgieva, the European commissioner for budget and human resources.
There is some evidence that the right of center parties in European capitals have been behind this with some articles appearing in the last few weeks against Bokova. The Guardian reported on the 26th: “one of her (Kristalina’s) staff members was hacked and emails purporting to be from one of her top aides were sent out to the rest of her office, instructing them to attack Bokova”There is no question that Kristalina has the cv and record to be a very good UN Secretary General. She is a strong supporter of sustainable development issues she will pick up the SDGs and climate agendas with ease. She is dynamic and very personable and was very active around last week’s UN General Assembly High Level se…