UK - Former US vice president Al Gore has urged the UK pensions industry to abandon short term investment horizons and review the way it incentives managers of firms it hold investments in.
In a speech at the National Association of Pension Funds (NAPF) annual conference in Edinburgh, Gore said the pensions industry held a great responsibility with the weight of money they controlled. He called for an end to quarterly reports, though he emphasised that changes would be more meaningful if they were not forced through legislation.
Gore told the conference: “You are key players in clash of post industrial civilisation and the environment.”
“Managers need to be incentivsed to adopt more carbon neutral strategies. Many managers can’t do this because institutional investors are constantly demanding maximum quarterly performance.”
In terms of countries which were furthest ahead in factoring in long term sustainability in their plans Gore praised Australia and the Scandinavian schemes.
However, he saw less appetite for change in the US. “I am afraid the US are bringing up the rear on this,” he said
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