Created with the support of: Presentation by: Giuseppe van der Helm Executive Director, VBDO President, Eurosif

Transcription

1 Created with the support of: Presentation by: Giuseppe van der Helm Executive Director, VBDO President, Eurosif

2 Agenda Eurosif CPF Study Introduction and Background Main Findings SRI Policy Adoption SRI Policy Input SRI Policy Implementation SRI Policy Communication Recommendations

3 Introduction and Background Report proposed at Eurosif Annual Event 2009 National studies already performed in the Netherlands and the UK. European study supported by Eurosif member affiliates. Pension fund survey covers 12 European countries Research is conducted by local SIFs and other research partners. European results complied by Eurosif Country analyses complement European findings 169 corporate pension funds completed the survey

4 SRI Policy Adoption (1) European Results 56% of respondents have a formal SRI policy 60% believe that ESG factors affect long-term performance of pension fund 66% believe that SRI is part of fiduciary duty Some corporate pension funds are, in their own estimation, not fulfilling their fiduciary duty

5 SRI Policy Adoption (2) Country Results

6 SRI Policy Adoption (3) Barriers for funds No clear trend is identified for why funds have not adopted a policy Reasons cited for not having an SRI policy include: Risk and performance concerns Unfamiliarity with topic Lack of resources

7 2. European Results SRI Policy Policy Input input (1) (1) Common Sources Pension fund boards CSR/sustainability policy of funding company Pension Fund SRI Policy

8 2. European Results SRI Policy Policy Input input (2) (2) Top Sources by Country

9 SRI Policy Implementation (1) Asset Classes Equities and bonds are most commonly covered by SRI policy

10 Compared to European average SRI Policy Implementation (2) Country Sweden - more attention for alternatives/hedge funds Norway, Sweden - more attention for monetary/deposits Germany, Spain - more attention for bonds than other asset classes

11 SRI Policy Implementation (3) Strategies The most commonly cited tools used for policy implementation

12 Differences between individual countries SRI Policy Implementation (4) Strategies Most consistently used strategy is negative screening Voting: prevalent among Dutch, Spanish, Swiss, and UK corporate pension funds. Less so among Italian, Nordic, Austrian, German funds Engagement: common in Austria, the UK, Netherlands, much less in Belgium, the Nordic countries and France

13 SRI Policy Implementation (5) Delegation European corporate pension funds rely heavily on external fund managers to implement SRI policy

14 SRI Policy Communication Recipients of Communication The majority of funds share their SRI activities internally with the board and their members. There is a reluctance to communicate externally. Manner of Communication Funds vary greatly in their manner of communicating SRI policy. Methods include reporting in annual/sustainability report, on fund website, and through newsletters

15 Recommendations Developing Policy Consult the funding company s CSR/sustainability policy when composing and SRI policy Involve pension fund boards and members when composing and implementing an SRI policy Educate pension funds boards on the nature of the link between SRI and financial risk and long-term performance Consult existing SRI policies from other (corporate) pension funds when composing and SRI policy Ask (potential) fund managers for their SRI policies when composing an SRI policy

16 Recommendations Refining Policy Expand the SRI policy into multiple asset classes Use a variety of instruments to implement the SRI policy Provide increased transparency on the SRI policy, its implementation and results Participate in collaborative initiatives such as national SIFs, Eurosif, the UNPRI and the CDP Encourage European-wide legislation requiring (corporate) pension funds to report on their SRI policies

17 Eurosif La Ruche, 84, Quai de Jemmapes, F Paris, France