Pension funds and other asset owners are increasingly interested in beneficiaries' preferences when it comes to ESG issues, according to a report released by the Principles for Responsible Investment , a U.N.-affiliated investor initiative.
PRI interviewed 14 asset owners worldwide that are PRI signatories on how they engage with beneficiaries. The resulting guide will help asset owners incorporate their beneficiaries' preferences, "which should be a fundamental aspect of an asset owner's investment strategy, policy and strategic asset allocation," said the PRI report, released Wednesday.
The asset owners were:
- AkademikerPension, Gentofte, Denmark.
- Alecta Pensionsforsakring, Stockholm.
- AP6, Gothenburg, Sweden.
- CareSuper, Melbourne, Australia.
- CBUS Super, Melbourne, Australia.
- Environment Agency Pension Fund, Bristol, England.
- J.P. Morgan Asset Management.
- Momentum Metropolitan Life Ltd., Centurion, South Africa.
- National Employment Savings Trust, London.
- Previ - Caixa de Previdencia dos Funcionarios do Banco do Brasil, Rio de Janeiro.
- SEB Life and Pension, Stockholm.
- Pensioenfonds ABP, Heerlen, Netherlands.
- Pensioenfonds Horeca & Catering, Zoetermeer, Netherlands.
- The Vanguard Group (Australia).
Interest on the part of pension funds and other asset owners is being driven by an evolving regulatory landscape, an increased acknowledgment among asset owners that investments should reflect the values of their beneficiaries, and increased realization of the benefits of doing so, the report said. In addition to to exploring those factors, the guide offers a four-step process for understanding and addressing beneficiaries' core values, and a survey template to get relevant information from beneficiaries about their preferences.