Pension Funds, Accounts and Other Investments for a Good Future

Abstract

Every organisation, and to a certain extent every employee, can choose whether their investments, their bank accounts, their pension fund and so on, are benefitting from supporting climate-damaging activities, such as the profits of the fossil fuel industry, or are supporting the transition to a low-carbon society by investing in appropriate products and processes. Making bad decisions can result in organisations facing the risk of stranded assets. This chapter will cover Socially Responsible Investing (SRI) and the difference between investment for impact and investment with impact. It will also include responsible shareholding and ESG investing. There is also a case study focused on sustainable investing in relation to pensions, along with Quick Wins and Further Resources. Leading initiatives such as the United Nations' Principles for Responsible Investment (PRI), the Global Impact Investing Network (GIIN), the Impact Management Project (IMP) and the European Venture Philanthropy Association (EVPA) will be introduced. More specifically, different investment and screening strategies will be evaluated, the IMP's five dimensions of impact will be introduced, finally, this chapter will guide managers and employees in organisations to make the right choices based on their own values and financial needs.