GLOBAL - Institutional investors, including pension funds, should accept some degree of responsibility for the investment practices which have cause the global economic crisis, the UN Principles for Responsible Investment (UNPRI) Initiative has said.
California Public Employees' Retirement System (CalPERS) chief executive and UNPRI board member Anne Stausboll said: "CalPERS believes integrating responsible investing with our asset management is part of our fiduciary responsibility.
"More than ever, we're committed to collaborative efforts to develop better regulatory and market risk management structures and to better assess and fully report risks and opportunities related to environmental, social and governance issues."
The UNPRI released an eight-point plan to bolster responsibility among investors, chief among which was the expansion of risk management and further investments into responsibility activities.
The list also called on investors to incentivise their managers to research and address responsibility issues, take on active ownership concerns and make public their activities in this area.
PRI Initiative chairman and BT Pension Scheme trustee Donald MacDonald added: "As clients and part owners of the financial institutions at the core of this crisis, institutional investors should accept some shared responsibility for the behaviours that led to the crisis.
"In response, and to protect our investments over the long-term, institutional investors need to greatly improve due diligence within the investment chain, and to practice and incentivise much smarter risk management."
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