Pensions minister Stephen Timms has promoted the idea of socially responsible investment by stating companies with environmental policies or that allow union representation are better investments.
Speaking at a TUC Stock Exchange conference on pensions and pension trusees, Timms has said such companies run "less repuational risk" and "are less likely to suffer the commercial consequences of customer animosity."
"They are also less likely than others to suffer costly adverse regulatory or enforcement decisions. They are at least as likely and perhaps more likely to represent good investments."
These are all points Timms, and the government, are keen for trustees to take account of.
Also on the issue of pensions fund investments, Timms says the government wants to push for a 50% level of scheme-member nominated trustees by 2009.
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Jonathan Boyd on 020 7484 9769 or email [email protected].IFAonline
Clarke replacing Balkham
'Deep-dive analysis of client behaviour'
Ways to mitigate April’s increases
The best equity income funds examined