View more on these topics

Fund managers Gored for short-term focus

Former US vice-president Al Gore has hit out at company bosses and fund managers for damaging the environment by focusing on short-term goals.

Speaking at the National Association of Pensions Funds’ annual investment conference in Edinburgh, Gore warned that companies’ obsession with meeting short-term profit targets rather than taking a longer term view, was hampering work to combat climate change.

He urged the pension fund industry to force companies to take a more responsible approach to environmental issues. He said pension fund trustees and managers had a fiduciary obligation to look more closely at the impact that the companies in which they are investing have on the environment.

He also suggested that fund managers’ pay should be linked to a minimum of three years performance to encourage them to take longer-term positions in companies rather than switching their portfolios every few months.

Speaking as chairman of Generation Investment Management, a UK-based group focusing on developing new approaches to sustainable investment, Gore said encouraging better environmental practices would achieve better returns in the long run.

Gore, who released the environmental documentary film An Inconvenient Truth last year argued that regulation will eventually penalise firms which do not manage their carbon footprint.

Referring to pension fund trustees and managers, he said: “I am urging you to look at ways to integrate sustainability systematically into your analysis of what is a good investment. We have everything we need to make this transition possible with the possible exception of the will to act. But this will to act is a renewable resource.”

BestInvest head of communications Justin Modray says: “Most companies do take too much of a short-term approach by, for example, outsourcing to firms in emerging markets which place less emphasis on environmental issues.

“But it is a double-edged sword as consumers want cheap products. Fund managers could play a part in this by encouraging companies they invest in to be greener.”

Recommended

BUDGET REACTION: BSA expects more green measures

The Building Societies Association has welcomed the Government’s moves to promote household energy efficiency, but described them only as a first-step.BSA director-general Adrian Coles says: “The measures proposed to increase energy efficiency of homes, targeted at pensioners and low income families, are a welcome first step. Given the impact of carbon emissions from households on […]

Jupiter growth exempt is now high alpha

Jupiter has renamed its £14m growth exempt fund as the high alpha fund and has raised minimum investment from £5,000 to £100,000.The fund is managed by Justin Seager and the name change was needed as the firm has got the go-ahead from the FSA to take away the fund’s exempt status, which means it is […]

AIM tax reliefs to remain

The London Stock Exchange has rushed to reassure investors the current tax reliefs for AIM listed shares will continue to apply. There had been some worry within the industry that changes announced in yesterday’s Budget may affect the tax reliefs for shareholders of qualifying AIM companies, including the potential loss of IHT benefits.But an LSE […]

A tough start for 2017 consensus trades

By Kacper Brzezniak Every year, starting around November, investment banks (and fund managers) begin to drip out their outlooks for currencies, rates, economies, you name it, for the following year. The consensus has been largely wrong for the past four or five years; those multiple rate hikes never came, the bond market is still alive […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com