August 2023
25Aug

Unbundling Climate Change Risk from ESG

By Jeffrey N. Gordon  The divergence between the United States and the European Union over ESG disclosure and compliance policy for asset managers and companies is a striking feature of the corporate governance landscape. This divergence derives at least in part from differences in core features of the relevant political economy. In particular, retirement security in the US is significantly tied to stock market values; this is not so in Europe. The US is a petro-state, the world’s largest producer...

August 25, 2023
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July 2023
23Jul

Providing security, building sustainable futures

By Pension Protection Fund  Our purpose is to protect the future of millions of people throughout the UK who belong to defined benefit (DB) pension schemes - 9.6 million as at 31 march 2022. When these schemes fail we’re ready to help. We do this by paying our members, charging a levy and investing for the long term. Read book “here”

July 23, 2023
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June 2023
16Jun

Shareholder ire takes shine off stock rally for Toyota chairman

The biggest rally in three years for Toyota has shown how a well-timed campaign to promote the carmaker’s EV strategy can pay off, but a dip in support for Chairman Akio Toyoda at a shareholders meeting serves as a reminder of the perils of drawing investor ire. A 13% rise in Toyota’s stock added ¥4.4 trillion ($31.4 billion) in market value this week, after the company shared details of how it plans to catch up in the global shift to...

June 16, 2023
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14Jun

Akio Toyoda reelected Toyota chairman despite pension funds’ governance concerns

Toyota Motor weathered an unprecedented showdown with investors at its annual general meeting on Wednesday as shareholders approved former President Akio Toyoda's nomination to the board and rejected a proposal demanding better disclosure on climate lobbying activities. Proxy advisers, U.S. pension funds and European asset managers criticized the automaker's insufficient corporate governance and environmental efforts, heaping pressure on a fledgling management team already facing intensifying industry competition in electric vehicles. "The new management is able to get to a start thanks...

June 14, 2023
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April 2023
04Apr

Modern slavery audits in supply chains subpar for investors

Institutional investors have become more aware of the risks of modern slavery in their portfolio companies’ supply chains, but detecting labor issues is an uphill battle as companies chase profits and the industry lacks skills to detect labor issues. In emerging Asia, where the bulk of supply chain companies are located, regulations are not yet at a level where they’re an effective deterrent, sources said. According to the United Nations, modern slavery refers to “situations of exploitation that a person cannot...

April 4, 2023
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March 2023
31Mar

ESG and Climate Change: Pension Fund Dos and Don’ts

By Randy Bauslaugh Pension fund administrators have a fiduciary duty to prudently manage financial risks and opportunities when investing plan assets and when managing plan operations that are paid from the pension fund. This includes the financial risks and opportunities associated with climate change and other environmental, social and governance (ESG) issues. But what are the legal dos and don’ts? Plan fiduciaries will always be on solid legal ground if they take ESG information into account for financial purposes – to...

March 31, 2023
Articles, Pension Management, Savings, , ,
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17Mar

Politicians Make Poor Asset Managers

Not that long ago, state legislators of various stripes told their state pension systems they must immediately divest of any portfolio investments tied to companies doing business in South Africa. The apartheid debate was front and center for nearly every public pension fund in the country. Several funds went along with the political demands, but most did not. Pension officials took the view that bowing to divestment demands would be a complete surrender of their independent, fiduciary responsibilities owed...

March 17, 2023
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08Mar

Diverse investment teams deliver outperformance – WTW

Greater gender diversity in an investment team can add 45 basis points per year in net excess returns, an analysis by Willis Towers Watson showed. The consultant's new research paper, Diversity in the asset management industry: on the right track, but at the wrong pace, analyzed investment strategies across equities, credit and real assets, and cover global, U.S. and other regions. Using diversity data as of Dec. 31, 2021, and net performance data as of Dec. 31, 2022, WTW looked at...

March 8, 2023
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03Mar

The Liability Trap: Why the ALEC Anti-ESG Bills Create a Legal Quagmire for Fiduciaries Connected with Public Pensions

By David J. Berger, David H. Webber & Beth Young Two proposed bills barring public pensions from considering environmental, social, and governance investment criteria create massive legal risk for any pension fiduciary or service provider. The American Legislative Exchange Council “boycott bill” and the “fiduciary duty” bill, if adopted, would impose irreconcilable legal requirements on such fiduciaries, and subject them to compliance with arbitrary and unworkable legal demands. The main legal problems the bills create fall into four categories: (1) the unworkable...

March 3, 2023
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December 2022
01Dec

Canada Pension Plan funds war and climate change

The Canada Pension Plan (CPP) manages $539 billion on behalf of over 21 million working and retired Canadians, making it the seventh largest pension plan in the world. The CPP Investment Board (CPPIB) however is accountable first and foremost to the federal and provincial governments, not the contributors and beneficiaries. A webinar  “What is the CPPIB Really Up To?” was hosted earlier this year by the Canadian Foreign Policy Institute, Just Peace Advocates, World BEYOND War and several other organizations....

December 1, 2022
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