FairPensions
Encyclopedia
FairPensions is a registered charity that promotes responsible investment by
pension schemes and fund managers. It is based in London
, United Kingdom
.
FairPensions’s aim is to improve corporate behaviour regarding environmental, social and governance issues. The advocacy group focuses on encouraging pension funds to implement responsible investment strategies. The charity engages with corporations through shareholder
action. Its work is driven by the fact that people indirectly have shares in companies through their participation in pension schemes and other financial products.
FairPensions runs campaigns and publishes research. It is supported by a number of member organisations, such as Greenpeace
, ActionAid
, Amnesty International
UK, UNISON
, Access and Christian Aid
.
FairPensions has been shortlisted in the ‘Animals and the Environment' category in the Charity Awards 2010 for its campaign work about the tar sands in Canada.
FairPensions is the operating name of Fairshare Educational Foundation. The charity sprung from the “Ethics for USS” campaign which led to The University Superannuation Scheme being the first pension fund to adopt a socially responsible investment policy in the 1990s.
Catherine Howarth is the current CEO of FairPensions.
FTSE 100 companies to implement Living wage
standards. The campaign was backed by UK and US investors that hold £13 billion assets under management and was launched at the rally (2 May 2011) for the celebration of the 10th anniversary of the Living wage
campaign.
A letter signed by the investor coalition was sent to the top 100 UK companies, asking them to pay Living Wages. FairPensions mobilised members of the public to participate at the AGM
of companies such as Barclays, Lloyds, Centrica
and Standard Life
to ask them questions about their Living wage
policy and to push towards its implementation. Standard Life
committed to start discussions with its contractors to allow the company to become a Living wage
Employer across all UK operations.
The JustPay! campaign gained cross party support from MPs who signed an Early Day Motion
to call the FTSE 100 to pay Living Wages in the UK.
Tar Sands - Counting the Cost
In 2010, FairPensions launched a campaign to challenge the development of tar sands
deposits by oil companies in Canada. The tar sands
project has been characterised by environmentalists as “the biggest environmental crime in history”. FairPensions coordinated two shareholder resolutions at Shell
’s and BP
’s annual general meetings, asking the companies to disclose more information about their involvement in the tar sands
project. Both firms called on their shareholders to vote against the resolution
. At the BP
AGM
, on 15th April 2010, 14% of shareholders refused to back the management’s recommendation, while at Shell
’s AGM
, on 18th May 2010, 11% of investors refused to follow management. The campaign gained major support from politicians, unions and members of the public, including celebrities such as actor and comedian Alistair McGowan
and Thom Yorke
of the band Radiohead
. It was considered a success in stimulating shareholder engagement.
“Is your pension in Deepwater?”
The explosion of the Deepwater Horizon
on 20th April 2010 raised new concerns about BP
’s risk management practices. FairPensions launched a campaign calling for greater reporting by pension funds of their management of environmental and safety risks at companies in which they are shareholders. FairPensions said that the Gulf of Mexico
oil leak could affect UK pension funds, arguing that that the environmental risks also have financial consequences. The charity urged investors to take measures to ensure that ESG
issues are monitored in order to avoid similar crisis management problems in the future. It also put pressure on the Government to tighten pension funds regulations on environmental and social risk. The campaign raised awareness about the need for investors to pay attention to ESG
risks.
“Got oil?”
A few months later, in September 2010, FairPensions joined Greenpeace
to launch a new campaign to raise awareness about the “increasingly risky business model” of the oil industry. The “Got Oil?” campaign encouraged pension funds and fund managers to challenge oil companies about how they are dealing with climate change risks.
North Sea oil spill
FairPensions saw a similar crisis management failure in the following year’s oil leak at North Sea
from Shell
’s platform and said that investors should be concerned about the “lack of transparency” after the spill.
’s decision in January to obey Mubarak’ s government order to shut down its mobile and internet networks in Egypt
. In Vodafone
’s AGM
(26.07.2011) Access asked the company to take steps to prevent the repetition of such acts. Access published an action plan for telecommunications companies to ensure the protection of fundamental human rights issues.
In 2006, the Swiss pharmaceutical company Novartis
launched a court case against India
, challenging the country’s patent law to develop generic drugs. NGOs claimed that this could prevent some of the world’s poorest people from receiving vital medicines. FairPensions joined Oxfam
in a campaign to block Novartis
legal action; with FairPensions pointing out the risk for reputational damage for the company should the case proceed. The two charities mobilised members of pension funds worth £1.7trn, asking them to put pressure on Novartis
by using their shareholder power. On 6 August 2007, Novartis
dropped its appeal.
Unearth Justice
In 2008, FairPensions launched a joint campaign with CAFOD
in order to raise concern about mining companies’ impact on human rights in the developing world. FairPensions and CAFOD
sent briefings to 400 large UK pension funds and asset managers asking them to put pressure on mining companies about the ethical and investment risk of their policies.
. The report ranked the 29 largest asset managers who invest on behalf of UK pension funds and retail clients. According to the survey, 41% of the asset managers make no information publicly available on engagement activities, while 17% do not disclose voting data.
pension schemes and fund managers. It is based in London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
, United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
.
FairPensions’s aim is to improve corporate behaviour regarding environmental, social and governance issues. The advocacy group focuses on encouraging pension funds to implement responsible investment strategies. The charity engages with corporations through shareholder
Shareholder
A shareholder or stockholder is an individual or institution that legally owns one or more shares of stock in a public or private corporation. Shareholders own the stock, but not the corporation itself ....
action. Its work is driven by the fact that people indirectly have shares in companies through their participation in pension schemes and other financial products.
FairPensions runs campaigns and publishes research. It is supported by a number of member organisations, such as Greenpeace
Greenpeace
Greenpeace is a non-governmental environmental organization with offices in over forty countries and with an international coordinating body in Amsterdam, The Netherlands...
, ActionAid
ActionAid
ActionAid was founded in 1972 as a child sponsorship charity when 88 UK supporters sponsored 88 children in India and Kenya, the focus primarily being to provide children with an education. Global accounts are now reported in Euros and in 2007 and 2008 turnover was close to 180m Euros...
, Amnesty International
Amnesty International
Amnesty International is an international non-governmental organisation whose stated mission is "to conduct research and generate action to prevent and end grave abuses of human rights, and to demand justice for those whose rights have been violated."Following a publication of Peter Benenson's...
UK, UNISON
UNISON
UNISON is the largest trade union in the United Kingdom with over 1.3 million members.The union was formed in 1993 when three public sector trade unions, the National and Local Government Officers Association , the National Union of Public Employees and the Confederation of Health Service...
, Access and Christian Aid
Christian Aid
Christian Aid is the official relief and development agency of 40 British and Irish churches and works to support sustainable development, alleviate poverty, support civil society and provide disaster relief in South America, the Caribbean, the Middle East, Africa and Asia...
.
FairPensions has been shortlisted in the ‘Animals and the Environment' category in the Charity Awards 2010 for its campaign work about the tar sands in Canada.
FairPensions is the operating name of Fairshare Educational Foundation. The charity sprung from the “Ethics for USS” campaign which led to The University Superannuation Scheme being the first pension fund to adopt a socially responsible investment policy in the 1990s.
Catherine Howarth is the current CEO of FairPensions.
Living Wage
In May 2011, FairPensions launched the JustPay! campaign to persuade theFTSE 100 companies to implement Living wage
Living wage
In public policy, a living wage is the minimum hourly income necessary for a worker to meet basic needs . These needs include shelter and other incidentals such as clothing and nutrition...
standards. The campaign was backed by UK and US investors that hold £13 billion assets under management and was launched at the rally (2 May 2011) for the celebration of the 10th anniversary of the Living wage
Living wage
In public policy, a living wage is the minimum hourly income necessary for a worker to meet basic needs . These needs include shelter and other incidentals such as clothing and nutrition...
campaign.
A letter signed by the investor coalition was sent to the top 100 UK companies, asking them to pay Living Wages. FairPensions mobilised members of the public to participate at the AGM
AGM
-Military and navy:* Air-to-ground missile, a missile designed to be launched from military aircraft* Artillery Gun Module, an air-portable self-propelled howitzer...
of companies such as Barclays, Lloyds, Centrica
Centrica
Centrica plc is a multinational utility company, based in the United Kingdom but also with interests in North America. Centrica is the largest supplier of gas to domestic customers in the UK, and one of the largest suppliers of electricity, operating under the trading names "Scottish Gas" in...
and Standard Life
Standard Life
Standard Life plc is a long term savings and investment business, with headquarters in Edinburgh and operations across the globe. It has 1.5 million shareholders in more than 50 countries and over 6 million customers.-History:...
to ask them questions about their Living wage
Living wage
In public policy, a living wage is the minimum hourly income necessary for a worker to meet basic needs . These needs include shelter and other incidentals such as clothing and nutrition...
policy and to push towards its implementation. Standard Life
Standard Life
Standard Life plc is a long term savings and investment business, with headquarters in Edinburgh and operations across the globe. It has 1.5 million shareholders in more than 50 countries and over 6 million customers.-History:...
committed to start discussions with its contractors to allow the company to become a Living wage
Living wage
In public policy, a living wage is the minimum hourly income necessary for a worker to meet basic needs . These needs include shelter and other incidentals such as clothing and nutrition...
Employer across all UK operations.
The JustPay! campaign gained cross party support from MPs who signed an Early Day Motion
Early day motion
An Early Day Motion , in the Westminster system, is a motion, expressed as a single sentence, tabled by Members of Parliament for debate "on an early day" . Controversial EDMs are not signed by Government Ministers, PPS or the Speaker of the House of Commons and very few are debated on the floor...
to call the FTSE 100 to pay Living Wages in the UK.
Environment
Tar Sands - Counting the Cost
In 2010, FairPensions launched a campaign to challenge the development of tar sands
Tar sands
Bituminous sands, colloquially known as oil sands or tar sands, are a type of unconventional petroleum deposit. The sands contain naturally occurring mixtures of sand, clay, water, and a dense and extremely viscous form of petroleum technically referred to as bitumen...
deposits by oil companies in Canada. The tar sands
Tar sands
Bituminous sands, colloquially known as oil sands or tar sands, are a type of unconventional petroleum deposit. The sands contain naturally occurring mixtures of sand, clay, water, and a dense and extremely viscous form of petroleum technically referred to as bitumen...
project has been characterised by environmentalists as “the biggest environmental crime in history”. FairPensions coordinated two shareholder resolutions at Shell
Shell Canada
Shell Canada Limited is the subsidiary of Dutch-based Royal Dutch Shell and one of Canada's largest integrated oil companies. Exploration and production of oil, natural gas and sulphur is a major part of its business, as well as the marketing of gasoline and related products through the company's...
’s and BP
BP
BP p.l.c. is a global oil and gas company headquartered in London, United Kingdom. It is the third-largest energy company and fourth-largest company in the world measured by revenues and one of the six oil and gas "supermajors"...
’s annual general meetings, asking the companies to disclose more information about their involvement in the tar sands
Tar sands
Bituminous sands, colloquially known as oil sands or tar sands, are a type of unconventional petroleum deposit. The sands contain naturally occurring mixtures of sand, clay, water, and a dense and extremely viscous form of petroleum technically referred to as bitumen...
project. Both firms called on their shareholders to vote against the resolution
Resolution (law)
A resolution is a written motion adopted by a deliberative body. The substance of the resolution can be anything that can normally be proposed as a motion. For long or important motions, though, it is often better to have them written out so that discussion is easier or so that it can be...
. At the BP
BP
BP p.l.c. is a global oil and gas company headquartered in London, United Kingdom. It is the third-largest energy company and fourth-largest company in the world measured by revenues and one of the six oil and gas "supermajors"...
AGM
AGM
-Military and navy:* Air-to-ground missile, a missile designed to be launched from military aircraft* Artillery Gun Module, an air-portable self-propelled howitzer...
, on 15th April 2010, 14% of shareholders refused to back the management’s recommendation, while at Shell
Shell Canada
Shell Canada Limited is the subsidiary of Dutch-based Royal Dutch Shell and one of Canada's largest integrated oil companies. Exploration and production of oil, natural gas and sulphur is a major part of its business, as well as the marketing of gasoline and related products through the company's...
’s AGM
AGM
-Military and navy:* Air-to-ground missile, a missile designed to be launched from military aircraft* Artillery Gun Module, an air-portable self-propelled howitzer...
, on 18th May 2010, 11% of investors refused to follow management. The campaign gained major support from politicians, unions and members of the public, including celebrities such as actor and comedian Alistair McGowan
Alistair McGowan
Alistair McGowan is a British impressionist, stand-up comic, actor, singer and writer best known to British audiences for The Big Impression , which was, for four years, one of BBC1's top-rating comedy programmes - winning numerous awards, including a BAFTA in 2003...
and Thom Yorke
Thom Yorke
Thomas "Thom" Edward Yorke is an English musician who is the lead vocalist and principal songwriter for Radiohead. He mainly plays guitar and piano, but he has also played drums and bass guitar...
of the band Radiohead
Radiohead
Radiohead are an English rock band from Abingdon, Oxfordshire, formed in 1985. The band consists of Thom Yorke , Jonny Greenwood , Ed O'Brien , Colin Greenwood and Phil Selway .Radiohead released their debut single "Creep" in 1992...
. It was considered a success in stimulating shareholder engagement.
“Is your pension in Deepwater?”
The explosion of the Deepwater Horizon
Deepwater Horizon
Deepwater Horizon was an ultra-deepwater, dynamically positioned, semi-submersible offshore oil drilling rig owned by Transocean. Built in 2001 in South Korea by Hyundai Heavy Industries, the rig was commissioned by R&B Falcon, which later became part of Transocean, registered in Majuro, Marshall...
on 20th April 2010 raised new concerns about BP
BP
BP p.l.c. is a global oil and gas company headquartered in London, United Kingdom. It is the third-largest energy company and fourth-largest company in the world measured by revenues and one of the six oil and gas "supermajors"...
’s risk management practices. FairPensions launched a campaign calling for greater reporting by pension funds of their management of environmental and safety risks at companies in which they are shareholders. FairPensions said that the Gulf of Mexico
Gulf of Mexico
The Gulf of Mexico is a partially landlocked ocean basin largely surrounded by the North American continent and the island of Cuba. It is bounded on the northeast, north and northwest by the Gulf Coast of the United States, on the southwest and south by Mexico, and on the southeast by Cuba. In...
oil leak could affect UK pension funds, arguing that that the environmental risks also have financial consequences. The charity urged investors to take measures to ensure that ESG
ESG
ESG may refer to:* Engineering Seismology Group, a microseismic monitoring and data analysis company from Canada.* Environmental Social and Corporate Governance, the commonly accepted factors involved in Responsible Investment assessments...
issues are monitored in order to avoid similar crisis management problems in the future. It also put pressure on the Government to tighten pension funds regulations on environmental and social risk. The campaign raised awareness about the need for investors to pay attention to ESG
ESG
ESG may refer to:* Engineering Seismology Group, a microseismic monitoring and data analysis company from Canada.* Environmental Social and Corporate Governance, the commonly accepted factors involved in Responsible Investment assessments...
risks.
“Got oil?”
A few months later, in September 2010, FairPensions joined Greenpeace
Greenpeace
Greenpeace is a non-governmental environmental organization with offices in over forty countries and with an international coordinating body in Amsterdam, The Netherlands...
to launch a new campaign to raise awareness about the “increasingly risky business model” of the oil industry. The “Got Oil?” campaign encouraged pension funds and fund managers to challenge oil companies about how they are dealing with climate change risks.
North Sea oil spill
FairPensions saw a similar crisis management failure in the following year’s oil leak at North Sea
North Sea
In the southwest, beyond the Straits of Dover, the North Sea becomes the English Channel connecting to the Atlantic Ocean. In the east, it connects to the Baltic Sea via the Skagerrak and Kattegat, narrow straits that separate Denmark from Norway and Sweden respectively...
from Shell
Shell Canada
Shell Canada Limited is the subsidiary of Dutch-based Royal Dutch Shell and one of Canada's largest integrated oil companies. Exploration and production of oil, natural gas and sulphur is a major part of its business, as well as the marketing of gasoline and related products through the company's...
’s platform and said that investors should be concerned about the “lack of transparency” after the spill.
Telecommunications and Human Rights
In July 2011, FairPensions supported the advocacy group Access in questioning the role of telecommunications companies when it comes to human rights issues. The initiative was born out of VodafoneVodafone
Vodafone Group Plc is a global telecommunications company headquartered in London, United Kingdom. It is the world's largest mobile telecommunications company measured by revenues and the world's second-largest measured by subscribers , with around 341 million proportionate subscribers as of...
’s decision in January to obey Mubarak’ s government order to shut down its mobile and internet networks in Egypt
Egypt
Egypt , officially the Arab Republic of Egypt, Arabic: , is a country mainly in North Africa, with the Sinai Peninsula forming a land bridge in Southwest Asia. Egypt is thus a transcontinental country, and a major power in Africa, the Mediterranean Basin, the Middle East and the Muslim world...
. In Vodafone
Vodafone
Vodafone Group Plc is a global telecommunications company headquartered in London, United Kingdom. It is the world's largest mobile telecommunications company measured by revenues and the world's second-largest measured by subscribers , with around 341 million proportionate subscribers as of...
’s AGM
AGM
-Military and navy:* Air-to-ground missile, a missile designed to be launched from military aircraft* Artillery Gun Module, an air-portable self-propelled howitzer...
(26.07.2011) Access asked the company to take steps to prevent the repetition of such acts. Access published an action plan for telecommunications companies to ensure the protection of fundamental human rights issues.
Health and Human Rights
“Patents Vs Patients”In 2006, the Swiss pharmaceutical company Novartis
Novartis
Novartis International AG is a multinational pharmaceutical company based in Basel, Switzerland, ranking number three in sales among the world-wide industry...
launched a court case against India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
, challenging the country’s patent law to develop generic drugs. NGOs claimed that this could prevent some of the world’s poorest people from receiving vital medicines. FairPensions joined Oxfam
Oxfam
Oxfam is an international confederation of 15 organizations working in 98 countries worldwide to find lasting solutions to poverty and related injustice around the world. In all Oxfam’s actions, the ultimate goal is to enable people to exercise their rights and manage their own lives...
in a campaign to block Novartis
Novartis
Novartis International AG is a multinational pharmaceutical company based in Basel, Switzerland, ranking number three in sales among the world-wide industry...
legal action; with FairPensions pointing out the risk for reputational damage for the company should the case proceed. The two charities mobilised members of pension funds worth £1.7trn, asking them to put pressure on Novartis
Novartis
Novartis International AG is a multinational pharmaceutical company based in Basel, Switzerland, ranking number three in sales among the world-wide industry...
by using their shareholder power. On 6 August 2007, Novartis
Novartis
Novartis International AG is a multinational pharmaceutical company based in Basel, Switzerland, ranking number three in sales among the world-wide industry...
dropped its appeal.
Unearth Justice
In 2008, FairPensions launched a joint campaign with CAFOD
CAFOD
The Catholic Agency For Overseas Development, previously known as the Catholic Fund for Overseas Development, is a United Kingdom-based international aid agency working to alleviate poverty and suffering in developing. It is funded by the Catholic community in England and Wales, the UK government...
in order to raise concern about mining companies’ impact on human rights in the developing world. FairPensions and CAFOD
CAFOD
The Catholic Agency For Overseas Development, previously known as the Catholic Fund for Overseas Development, is a United Kingdom-based international aid agency working to alleviate poverty and suffering in developing. It is funded by the Catholic community in England and Wales, the UK government...
sent briefings to 400 large UK pension funds and asset managers asking them to put pressure on mining companies about the ethical and investment risk of their policies.
Investors Surveys
FairPensions regularly publishes Investor rankings. In December 2010, FairPensions published a survey of fund managers' performance on engagement and transparency in the UK. “Stewardship in the Spotlight” was the first study of its kind since the launch of the Financial Reporting Council’s Stewardship CodeStewardship Code
The Stewardship Code is a set of principles or guidelines released in 2010 by the Financial Reporting Council directed at institutional investors who hold voting rights in United Kingdom companies...
. The report ranked the 29 largest asset managers who invest on behalf of UK pension funds and retail clients. According to the survey, 41% of the asset managers make no information publicly available on engagement activities, while 17% do not disclose voting data.