Pensions Bill

Part of the debate – in the House of Lords at 6:30 pm on 7 October 2008.

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Photo of Lord Joffe Lord Joffe Labour 6:30, 7 October 2008

moved Amendment No. 47:

After Clause 66, insert the following new Clause—

"Policy on ethical investment

(1) In carrying out its functions under section 66, the trustee corporation must secure that—

(a) a written policy on responsible investment is prepared and maintained;(b) the policy on responsible investment is reviewed at such intervals, and on such occasions, as may be prescribed and, if necessary, revised; and(c) the implementation of the responsible investment policy is incorporated into the trustee corporation's annual report and in the statement of investment principles.

(2) In this section "responsible investment" means determinations about the environmental, social, human rights and good governance ("ESHG") practices of the institutions in which investments are made by or on behalf of the trustee corporation, and their relationship to the long term profitability and sustainability of those institutions.

(3) A policy on responsible investment may include powers for the trustee corporation, and anyone appointed by the trustee corporation to manage the investment of pension money, to—

(a) engage with persons, from whom the trustee corporation purchases securities, to ensure that such persons act, or take steps to act, in accordance with the trustee corporation's policy on ESHG practices;(b) disinvest or sell, or not purchase or invest in, securities issued by persons whom the trustee corporation determines on reasonable grounds conducts, or has investment in, business operations that are associated with the commission of crimes against humanity, war crimes or genocide, the content of which is defined in the Rome Statue of the International Criminal Court and adopted into English law by the International Criminal Court Act 2001 (c. 17).

(4) A policy on ethical investment shall be in writing.

(5) The annual report referred to in subsection (1)(c) on implementation of policy against the statement of investment principles shall be made publicly available and cover—

(a) key aspects of the trustee corporation's investment policy and practices against the investment principles;(b) any significant changes in the policy and practices in investment policy against the investment principles over the previous year."