UK - The UK has become the leading provider of ethical pension funds in Europe, according to a report by the Association of Chartered Certified Accountants (ACCA).
The report, An Analysis of European Ethical Funds, found the number of UK investors in ethical funds, such as pensions and unit trusts, has more than tripled in the last four years, from 136,000 in 1997, to 456,000 by December 2000.
ACCA’s report examines the strategies employed by funds when incorporating 'ethical values' into fund management. It suggests that ethical funds in Europe have the potential to significantly outperform similar non-ethical funds in a matter of years.
Commenting on the report, Roger Adams, ACCA executive director-technical, said: ACCA has long been working hard to encourage further social responsibility in business decision making. The ACCA UK Awards for Sustainability Reporting are an amalgamation of three long running ACCA ethical award schemes. The new awards aim to reward organisations which have shown a genuine commitment to reporting on the social, environmental and wider economic impacts of their activities.
Niklas Kreander of the University of Glasgow and author of the report remarked: The success of these schemes is very encouraging for investors because they allow individuals to be more discerning when making investment decisions, without the prospect of losing out financially. Similarly fund managers can also rest assured that the market for ethical investing is thriving.
By Janet Du Chenne
Most respondents in this week's Pensions Buzz do not think businesses should be able suspend AE contributions if in financial distress.
Former BHS owner Dominic Chappell has lost the appeal against his section 72 conviction and sentence for failing to hand over information to The Pensions Regulator (TPR).
This week's top stories include Marsh and McLennan Companies agreeing to buy JLT, and the home secretary calling for AE to be scrapped in a no-deal Brexit scenario.
Lesley Titcomb says the watchdog wants closer interactions with pension funds to spot problems sooner and act before having to use its more stringent powers