The stewardship of European workers’ capital in times of crisis

Abstract

The global financial and economic crisis has reinforced the need for a broader regulatory and policy approach to responsible investment. This article looks at the interplay between pension policy and responsible investment practices which, it is argued, has been made more complicated and uncertain as a result of the crisis. The article looks first at the impact of the crisis on pension funds, the regulatory measures taken by regulators in reaction and the changing political economy of reform across Europe as a result of the crisis. From there the article outlines the broad features of a trade union perspective on pension fund responsible investment — known as workers’ capital strategies — and focuses on the post-crisis regulatory discussion in Europe on corporate governance and shareholder activism. The article concludes on the need for a comprehensive approach to responsible investment including by making the link with benefit security and solvency regulations.