May 18, 2006 | Read Time: 1 minute
Thirty-four government pension funds, religious groups, and other large institutional investors from 16 countries, controlling more than $2-trillion in assets, have joined together in an effort to ensure that companies pay greater attention to environmental and social issues.
The organizations helped develop the United Nations Principles for Responsible Investment, which encourage investors to base decisions such as which stocks to buy and how to vote on shareholder resolutions, on a company’s governance practices, as well as the steps it takes to demonstrate social and environmental responsibility.
One foundation was involved in drafting the principles — the Nathan Cummings Foundation, in New York. The foundation has for many years been actively involved in introducing shareholder resolutions that deal with social issues at companies in which it owns stock (The Chronicle, August 4, 2005). It has also been one of the leaders in efforts to persuade foundations to pay more attention to how they vote their corporate shares, so that they take positions on shareholder resolutions that parallel their philanthropic missions.
Lance Lindblom, president of the foundation, said he and others involved in drafting the new principles now plan to try to persuade other major corporate investors, including the nation’s largest foundations, universities, and nonprofit organizations, to adopt the measures.
A copy of the principles is available online at http://www.unpri.org.
