In November a group of civil society organisations wrote to MEPs calling on them to vote in favour of measures on Responsible Investment and transparency in the revision of the IORPs (Institutions for Occupational Retirement) Directive. Yesterday MEPs voted in favour of mandating consideration of environmental risks in pension schemes’ investment processes.
The vote on revision of the IORPs (Institutions for Occupational Retirement) Directive took place on Monday afternoon in the ECON Committee, the European Parliament’s Committee on Economic and Monetary Affairs.
Camilla de Ste Croix, Senior Policy Officer at ShareAction, said: “The ECON Committee’s vote shows that the debate on Responsible Investment in the EU is shifting in the right direction. By voting in favour of measures to mandate the consideration of environmental risks in pension schemes’ investment processes, MEPs have shown they recognise the very real risks that environmental issues can pose to investment portfolios.
“With €2.5 trillion held by European occupational schemes, the investment behaviour of these funds is crucial to the successful transition to the low-carbon economy. It is now critical that the text is not watered down as it passes through the final stages of the legislative process.
“We hope that once the Directive comes into force it will finally put an end to the misconception that fiduciary duty is a barrier to the consideration of ESG factors.”