Archived press release

Foe calls for ethical pension information

28 March 2001

Friends of the Earth today hit out at the Government for denying information on socially responsible pensions to millions of people. Next month the Government will launch its new stakeholder pensions which aims to provide private pensions for low-income earners and those not covered by existing schemes. Unfortunately the Government-produced guide fails to disclose that individuals can also obtain socially responsible pensions [1].

Over recent years surveys have consistently shown that around three quarters of people in the UK believe that pension funds should use their influence to encourage companies to be socially responsible [2]. However, many people are still unaware that they can opt for an ethically-managed pension fund when they are applying for stakeholder pensions.

Simon McRae, Investment Campaigner at Friends of the Earth said:
“The Government should be doing much more to encourage companies to become more socially responsible. Surveys show that the British public want pensions funds to encourage companies to behave more ethically. The least the Government can do is to provide details about socially responsible pensions in its new guide.”

Lee Coates, Director of Independent Financial Advisers Ethical Investors Group said:
"We see the introduction of the stakeholder pension as a socially responsible act. However, the lack of information on the socially responsible options available to investors, at the point of advice, mars an otherwise good scheme. Members of company pension schemes have this information easily to hand, yet stakeholder pension investors seem to be denied this fundamental piece of information when they need it most - when they are signing on the dotted line."

NOTES TO EDITORS

[1] The Government's stakeholder pensions guide is available at www.pensionguide.gov.uk

[2] Friends Ivory & Sime press release, 'Pension Fund Members want their Pension Funds to Encourage Socially Responsible Behaviour in Companies ', 24th August 2000. In June 2000 the Government amended the Pensions Act to require fund managers to tell members whether they considered the ethical, social or environmental impact of the companies they invested in.

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Published by Friends of the Earth Trust