All public sector bodies that invest in the stock market should follow international guidelines on responsible investment, Oxfam said today as it welcomed the second ever National Ethical Investment Week (NEIW), taking place from 8 - 14 November.
Oxfam called on the UK public sector to throw its weight behind a growing trend towards ethical investment. Socially responsible investment in the UK increased to almost £9bn last year, a six-fold increase in ten years, before falling along with the rest of the market during the economic crisis.
But the UK public sector’s involvement has been limited to a handful of investors such as the Environment Agency Pension Fund and the London Pension Fund Authority.
Barbara Stocking, Oxfam chief executive, said: “Investors make choices on our behalves, choosing where to invest our savings, pensions, mortgages and other money. It is up to us to hold them to account to make sure they help rather than harm poor people and combat, rather than worsen, climate change.
“The Government should mark National Ethical Investment Week by announcing that it will expect all public bodies to follow the lead taken by an increasing number of private institutional investors.”
Through its Better Returns to a Better World initiative, Oxfam is working to encourage investors properly to take account of the social and environmental impacts of their investment decisions. Investors can play an important role in lifting people out of poverty and tackling climate change, for example, by funding and rewarding those that behave responsibly and by investing in renewable energy, greener technologies and social enterprises.
Irresponsible investment, in contrast, can have very harmful effects, when it finances companies that violate human rights, avoid paying taxes, or produce high carbon emissions.
A number of major public asset owners in other countries have signed the UN-backed Principles of Responsible Investment, including the Government Employees Pension Fund of South Africa, Government Pension Fund of Thailand and the Norwegian Government Pension Fund.
Further information: Jon Slater 01865 472249/ 07876 476403/ jslater@oxfam.org.uk
