CalSTRS launched at the beginning of May an initiative that calls on 300 of its portfolio companies to develop comprehensive executive compensation policies and to allow shareholders advisory votes on those policies. The goal is to reward long-term thinking and improve pay-for-performance practices while deterring excessive risk taking. This initiative includes the publication of executive compensation model policy guidelines and communication with targeted companies that stresses using those guidelines. The CalSTRS model principles and guidelines offer companies a five-part approach that calls for a clear overarching philosophy that aligns the interests of shareholders and management, a well designed, comprehensive compensation policy that takes a detailed look at all of its components, transparency and accountability through a responsible compensation committee and a compensation committee comprised of independent directors using only independent advisors and consultants.

Source : CalSTRS

A report released at the end of April shows that major UK pension funds are now acknowledging the potential of 'non-financial' issues to affect the value of investments, but many still lack key strategies to manage these risks. The report also raises questions about the fund management industry's ability to meet changing client needs and demands. The research, by FairPensions, includes a 'league table' of the UK's 30 largest pension funds, which together have 4.86 million members, are worth an estimated 351 billion pounds and are seen as industry trend-setters. According to FairPensions, a third of funds which submitted information apparently do not apply their statements recognising the potential impact of ESG issues to the instruction, selection or reporting requirements from their fund managers. Moreover, almost half of the funds surveyed do not disclose their largest investments, and two thirds don't disclose their voting record.

Source : FairPensions

Bâtirente and Regroupement pour la responsabilité sociale et l'équité (RRSE) announced today that they have reached an agreement with Talisman Energy Inc. on an important corporate responsibility initiative. Talisman will conduct research and develop a report that will define and assess the benefits of adopting and implementing policies and procedures for securing and maintaining free, prior, and informed consent (FPIC) of Indigenous communities impacted by Talisman's operations. The report will focus on the concept of FPIC as it pertains to corporations engaging with indigenous communities in the various parts of the world where Talisman operates. The report will also examine current best practices in this area. The decision to prepare this report follows discussions held between Quebec-based Bâtirente and RRSE, whose members hold shares of Talisman Energy.

Source : Bâtirente

The UNEP FI Insurance Working Group, supported by leading academic institutions from the United States and Europe, is conducting a landmark global survey on the understanding and integration of environmental, social and governance (ESG) factors in insurance underwriting and product development. The core objectives are to assess the understanding and integration of ESG factors in insurance underwriting and product development globally, assess the financial materiality of ESG factors in insurance underwriting and product development, provide recommendations for sustainable insurance underwriting and research input for potential projects on other core insurance processes (e.g. investment, claims management, and sales & marketing). Last objective : establish a solid business case for the development of "Principles for Sustainable Insurance".

Source : UNEP FI