Voting services boost their products in response to
SRI
Voting services have boosted their products for institutional investors
as the new era of socially responsible investment (SRI) increases competition
in the market.
The Voting Issues Service (VIS), which is part of the
National Association of Pension Funds, is now calling on companies to provide
their views on SRI issues - a new move by VIS reflected in PW's governance
watch table. VIS said it had improved its information gathering on SRI issues
through a joint initiative, called the Engagement Partnership, involving other
organisations such as Business in the Environment and the Ethical Investment
Research Service (EIRIS).
Chris Baldry, manager of VIS, said: "We contact
the company four months before the annual general meeting and send an
aide-memoire which covers corporate governance matters. We also send a related
factsheet on environmental matter and ethical issues prepared for the service
by other organisations."
Information is passed to VIS subscribers.
Baldry said: "Following the changes to funds' statements of investment
principles we were responding to demand from fund managers for help with
information."
Other organisations, such as voting agency Manifest,
are building up databases to see how seriously companies take environmental
issues.
Manifest has developed its Green Card product that
provides detailed information.
Karen Eldridge, spokeswoman at EIRIS, said
providing information for fund managers and pensions fund trustees was an
important part of helping them to develop SRI strategies. She said competition
between different providers was healthy.
Pensions Week
10 July, 2000
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