Putting sustainable investing into practice: A governance framework for pension funds

Journal of Business Ethics

Volumn 92, Issue SUPPL 1, 2010, Pages 1-19

  Woods, Claire ^a   Urwin, Roger ^b  

^a UNIVERSITY OF OXFORD   (United Kingdom)

^b Towers Watson   (United Kingdom)

Author keywords

Fiduciary duty; Institutional investment; Intergenerational equity; Investment beliefs; Investment strategy; Pension fund governance

Indexed keywords

EID: 77956091567     PISSN: 01674544     EISSN: 15730697     Source Type: Journal    
DOI: 10.1007/s10551-010-0631-x     Document Type: Article

References (72)

1. Ambachtsheer, K. P.: 1997, Dedicated Governance a "Win-Win" Solution, Pensions & Investments 25(16), 14.
2. Ambachtsheer, K.: 2007, Why we Need a Pension Revolution, Financial Analysts Journal 63(1), 21-25.
3. Ambachtsheer, K. P., R. G. Capelle, et al.: 2007, Trustee Competency, Pensions & Investments 35(12), 18.
4. Anson, M.: 2008, What do we do now?, Pensions & Investments 36(20), 12.
5. Bartkus, B., M. Glassman and R. B. McAfee: 2000, Mission Statements: Are they Smoke and Mirrors?, Business Horizons 43(6), 23-28.
6. Basiago, A. D.: 1995, Methods of Defining Sustainability, Sustainable Development 3(3), 109-119.
7. Broder, J. M.: 2010, S.E.C. Adds Climate Risk to Disclosure List, New York Times, 27 January.
8. Brown, B. J., M. E. Hanson, D. M. Liverman and R. W. Meredith, Jr.: 1987, Global Sustainability: Toward Definition, Environmental Management 11(6), 713.
9. Brown Weiss, E.: 1984, The Planetary Trust: Conservation and Intergenerational Equity, Ecology Law Quarterly 2(4), 495-581.
10. Burr, B. B.: 2009, High-Yield Timing Poor, but Funds Stick with It, Pensions & Investments 37(2), 40-41.
11. Clark, G. L.: 2007, Expertise and Representation in Financial Institutions: UK Legislation on Pension Fund Governance and US Regulation of the Mutual Fund Industry, Twenty-First Century Society 2(1), 1-24.
12. Clark, G. and A. Monk: 2008, Vermont Pension Investment Committee: Effectiveness and Governance Assessment. A Consultancy Project for the Office of the State Treasurer, Vermont, pp. 1-19.
13. Clark, G. L.: 2008, Governing Finance: Global Imperatives and the Challenge of Reconciling Community Representation with Expertise, Economic Geography 84(3), 281-302.
14. Clark, G. L. and R. Urwin: 2008, Best-Practice Pension Fund Governance, Journal of Asset Management 9(1), 2-21.
15. Clark, G. L. and R. Urwin: 2010, Innovative Models of Pension Fund Governance in the Context of the Global Financial Crisis, Pensions 15(1), 62-77.
16. Clary, I.: 2009, Fixing a Broken System, Pensions & Investments 37(7), 11-12.
17. Connelly, S.: 2007, Mapping Sustainable Development as a Contested Concept, Local Environment 12(3), 259-278.
18. David, F. R.: 1989, How Companies Define Their Mission, Long Range Planning 22(1), 90-97.
19. De Graaf, F. J. and C. A. Williams: 2009, The Intellectual Foundations of the Global Financial Crisis: Analysis and Proposals for Reform, University of New South Wales Law Journal 32(2), 390-415.
20. Disney, R.: 2000, Crises in Public Pension Programmes in OECD: What are the Reform Options?, The Economic Journal 110(461), 1-23.
21. Epstein, G.: 2010, Chinas US Debt Quandary, Forbes Beijing Dispatch, 19 March.
22. Exley, D.: 2009, Comment: Westminster - View the Bigger Picture, Pensions Management, 1 December.
23. Friedman, M.: 1970, The Social Responsibility of Business is to Increase its Profits, New York Times, SM17, 13 September.
24. Frischmann, B.: 2005, Some Thoughts on Shortsightedness and Intergenerational Equity, Loyola University Chicago Law Journal 36(2), 457-468.
25. Gallie, W. B.: 1955, Essentially Contested Concepts, Proceedings of the Aristotelian Society 56, 167-198.
26. Gray, J.: 2009, Rethinking Investment Beliefs in a Time of Crisis: The Calming Hand of Philosophy, Rotman International Journal of Pension Management 2(1), 6-11.
27. Greenspan, A.: 2008, We Will Never have a Perfect Model of Risk, Financial Times, 9-9, 17 March.
28. Halbach, E. C. J.: 1992, Trust Investment Law in the Third Restatement, Real Property, Probate and Trust Journal 27(3), 408-466.
29. Hawley, J. P.: 1995, Political Voice, Fiduciary Activism, and the Institutional Ownership of U.S. Corporations: The Role of Public and Noncorporate Pension Funds, Sociological Perspectives 38(3), 415-435 (On Inequality: Papers from the 56th Annual Meeting).
30. Hess, D.: 2005, Protecting and Politicizing Public Pension Fund Assets: Empirical Evidence on the Effects of Governance Structures and Practices, University of California Davis Law Review 39(1), 187-224.
31. IUCN: 2006, The Future of Sustainability: Re-Thinking Environment and Development in the Twenty-First Century. Report of the IUCN Renowned Thinkers Meeting, 29-31 January 2006.
32. Jacobs, M.: 2006, Sustainable Development as a Contested Concept, in A. Dobson (ed.), Fairness and Futurity: Essays on Environmental Sustainability and Social Justice (Oxford University Press, Oxford), pp. 21-45.
33. Johnson, K. L. and F. J. de Graaf: 2009, Modernizing Pension Fund Legal Standards for the Twenty-First Century, Rotman International Journal of Pension Management 2(1), 44-51.
34. Knight, F. H.: 1921, Risk, Uncertainty and Profit (Houghton Mifflin, Boston).
35. Koedijk, K. C. G. and A. Slager: 2007, Investment Beliefs: Every Asset Manager Should have them, Journal of Portfolio Management 33(3), 77-84.
36. Koedijk, K. and A. Slager: 2009, Do Institutional Investors have Sensible Investment Beliefs?, Rotman International Journal of Pension Management 2(1), 12-19.
37. Langbein, J. H.: 2005, Questioning the Trust Law Duty of Loyalty: Sole Interest or Best Interest, Yale Law Journal 114(5), 929-990.
38. Langbein, J.H. and R. A. Posner: 1980, Social Investing and the Law of Trusts, Michigan Law Review 79(1), 72-112.
39. Martin, W.: 2009, Socially Responsible Investing: Is Your Fiduciary Duty at Risk?, Journal of Business Ethics 90(4), 549-560.
40. McKinsey & Co: 2010, How Companies Manage Sustainability: McKinsey Global Survey Results, McKinsey Quarterly March.
41. Merton, R. and Z. Bodie: 2005, The Design of Financial Systems: Towards a Synthesis of Function and Structure, Journal of Investment Management 3(1), 1-23.
42. Monk, A.: 2009, The Geography of Pension Liabilities and Fund Governance in the United States, Environment and Planning A 41(4), 859-878.
43. Myners, P.: 2001, Report on Institutional Investment in the UK (HM Treasury, London).
44. ORourke, A.: 2003, The Message and Methods of Ethical Investment, Journal of Cleaner Production 11(6), 683-693.
45. Popper, K.: 1963, Conjectures and Refutations: The Growth of Scientific Knowledge (Routledge & Kegan Paul, London).
46. Posner, E. A.: 2000, Law and Social Norms (Harvard University Press, Cambridge, MA, London).
47. Ratner, B. D.: 2004, "Sustainability" as a Dialogue of Values: Challenges to the Sociology of Development, Sociological Inquiry 74(1), 50-69.
48. Richardson, B. J.: 2007, Do the Fiduciary Duties of Pension Funds Hinder Socially Responsible Investment?, Banking & Finance Law Review 22(2), 145-201.
49. Richardson, B. J.: 2008, Socially Responsible Investment Law (Oxford University Press, Oxford).
50. Richardson, B.: 2009, Keeping Ethical Investment Ethical: Regulatory Issues for Investing for Sustainability, Journal of Business Ethics 87(4), 555-572.
51. Sandberg, J. and C. Juravle, et al.: 2009, The Heterogeneity of Socially Responsible Investment, Journal of Business Ethics 87(4), 519-533.
52. Schueth, S.: 2003, Socially Responsible Investing in the United States, Journal of Business Ethics 43(3), 189-194.
53. Senior, C.: 2009, Green is Good, Professional Pensions, 15-15, 26 March.
54. Sethi, S. P.: 2005, Investing in Socially Responsible Companies is a must for Public Pension Funds: Because there is no Better Alternative, Journal of Business Ethics 56(2), 99-129.
55. Shaw, B. and M. Hagigi, et al.: 1988, Investment Prudence and Fiduciary Responsibility in Managing Defined Benefit Pension Funds Under ERISA, Suffolk University Law Review 22(1), 83-102.
56. Skypala, P.: 2009, Clear Investment Beliefs are Crucial, Financial Times Last Word, 6, 12 October.
57. Sparkes, R.: 2002, Socially Responsible Investment: A Global Revolution (Wiley, Chichester).
58. Sparkes, R. and C. J. Cowton: 2004, The Maturing of Socially Responsible Investment: A Review of the Developing Link with Corporate Social Responsibility, Journal of Business Ethics 52(1), 45-57.
59. Stiglitz, J. E.: 2004, Capital-Market Liberalization, Globalization, and the IMF, Oxford Review of Economic Policy 20(1), 57-71.
60. Thaler, R. H.: 2008, Nudge: Improving Decisions about Health, Wealth, and Happiness (Yale University Press, New Haven, CT; London).
61. Thornton, R.: 2008, Ethical Investments: A Case of Disjointed Thinking, Cambridge Law Journal 67(2), 396-422.
62. UNEP FI: 2005, A Legal Framework for the Integration of Environmental, Social and Governance Issues into Institu-tional Investment (United Nations Environment Program Finance Initiative, Geneva).
63. UNEP FI: 2009, Fiduciary Responsibility: Legal and Practical Aspects of Integrating Environmental, Social and Governance Issues into Institutional Investment (United Nations Environment Program Finance Initiative, Geneva).
64. Van Marrewijk, M.: 2003, Concepts and Definitions of CSRand Corporate Sustainability: Between Agency and Communion, Journal of Business Ethics 44(2), 95-105.
65. Viederman, S.: 2004, Addressing Obstacles to Social Investing, Journal of Practical Estates Planning 6(2), 48-49.
66. Vos, R. O.: 2007, Defining Sustainability: A Conceptual Orientation, Journal of Chemical Technology and Biotechnology 82(4), 334-339.
67. Waitzer, E.: 2009, Defeating Short-Termism: Why Pension Funds Must Lead, Rotman International Journal of Pension Management 2(2), 4-8.
68. Walsh, M. W.: 2010, Public Pension Funds are Adding Risk to Raise Returns, New York Times, 9 March.
69. Weinrib, E. J.: 1975, The Fiduciary Obligation, The University of Toronto Law Journal 25(1), 1-22.
70. Williams, L. S.: 2008, The Mission Statement, Journal of Business Communication 45(2), 94-119.
71. Woods, C.: 2011, Funding Climate Change: How Pension Fund Fiduciary Duty Masks Trustee Inertia and Short-Termism, in J. Hawley, S. Kamath and A. T. Williams (eds.), Corporate Governance Failures: The Role of Institutional Investors in the Global Financial Crisis, Chapter 11 (University of Pennsylvania Press, Philadelphia) (Forthcoming).
72. World Commission on Environment and Development: 1987, Our Common Future (Oxford University Press, Oxford).