Most pensions funds do not invest according to socially responsible principles despite claiming they do, a charity report has found.
Many funds have stated that they take account of social and environmental issues in response to government legislation. But according to a survey by JustPensions, a monitoring group set up by War on Want and Traidcraft Exchange, these policies have not changed the actual practice of pension fund investors.
A total of 17 funds were surveyed, which manage 20 per cent of the total assets of UK pension funds, through in-depth interviews with administrators. The report found "poor practice in relation to socially responsible investment is the norm, with SRI issues not considered part of investment strategies."
"Unless pension funds take urgent steps to improve their implementation of SRI strategies, the case for regulatory action by the Government will only be strengthened,
said the report's co-author Duncan Green.