SIO calls for national pension reform on SRI and voting disclosure

The Social Investment Organization has called on national pension regulators to adopt wide ranging reforms to make all pension funds transparent on their SRI policies and shareholder votes.

In a brief June 30 to the Canadian Association of Pension Supervisory Authorities (CAPSA), SIO has called on national pension regulators to adopt a model pension law that would require all pension funds to disclose whether they incorporate social and environmental assessments into their investment policies.

As well, SIO is calling for legislation requiring all pension funds to disclose to their plan members their policies on voting their shares in companies in their portfolios. The SIO brief also calls on pension funds to keep records of their votes and to provide these records to their plan members directly or through their websites.

“Such disclosure would provide important new information to plan members about the long-term management of their pension assets,” states the brief, which was sent in response to a consultation on a model pension law. The regulators are hoping that the model pension law will provide a harmonized and simplified framework for pension reform federally and in all provinces.

“As well, it would provide a level of transparency that would enhance the practice of social and environmental assessment and proxy voting through the investment community in Canada.”

The SRI disclosure recommendations are similar to rules currently in place in the UK, France and Germany. The voting disclosure recommendations are similar to rules recently proposed by the Canadian Securities Administrators for mutual funds in Canada.

SIO’s brief is posted on its website at www.socialinvestment.ca/Policy&Advocacy.

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