Morley Fund Management's ('Morley') revised voting policy introduces a requirement for large UK companies to publish environmental reports. Morley believes this is the first initiative of this type in the UK fund management industry.
Major fund manager greens the FTSE
Morley Fund Management's ('Morley') revised voting policy introduces a requirement for large UK companies to publish environmental reports. Morley believes this is the first initiative of this type in the UK fund management industry.
Morley, the UK based asset manager of CGNU plc, manages assets in excess of Ł100 billion, over Ł42 billion of this is invested in UK equities, the equivalent of 2.5% of the UK stockmarket. This share of the market adds substantial weight to this corporate governance initiative.
Commenting on the new development, Anita Skipper, Head of Corporate Governance at Morley said:
"Identification of environmental risks and opportunities is becoming increasingly important for institutional investors. We believe that management ought to be actively considering steps to report publicly on their key environmental issues. The new addition to our corporate governance policy encourages companies to move in that direction. We believe this policy is unique in the UK fund management industry."
The new addition to the Corporate Governance policy states:
FTSE 100 Companies:
- Morley expects all FTSE 100 companies, in all sectors, to have robust processes to minimise damaging environmental impacts. We therefore expect these companies to publish a comprehensive Environmental Report.
- Where FTSE 100 companies do not publish such a report, and after consultation as to management intentions, we will vote against the resolution to adopt the Report & Accounts.
FTSE 250 Companies:
- Morley expects FTSE 250 companies in high risk sectors to produce an Environmental Report. Where such a report is not produced Morley will abstain on the resolution to adopt the Report & Accounts.
- Morley will review the situation each year but it is likely that a harder stance will be taken, over time, to match the approach taken with the FTSE 100 companies.
Over the last two years Government, non-governmental organisations, society and shareholders have been increasingly interested in environmental reporting. Tony Blair summarised the Government's approach in a recent speech* to industry managers and environmentalists:
"I would like to see more reporting on environmental and social issues. The pioneers of environmental reporting - companies like BA, BT, British Gas and BP - are seeing increasing benefits from both improved efficiencies and public image as a result. This is something that all companies should be doing, and I am issuing a challenge today to all of the top 350 companies to be publishing annual environment reports by the end of 2001."
-Ends-
For further information please contact
| Morley Fund Management | ||
| Anita Skipper, | Head of Corporate Governance | 020 7809 8205 |
| Paul Moody, | Head of Business Development, SRI | 020 7809 6197 |
| Penrose Financial | ||
| Gay Collins/Caroline Deutsch | 020 7786 4888 | |
| gayc@penrose.co.uk carolined@penrose.co.uk |
Notes to Editors
* "Richer and Greener" Speech by Tony Blair to the CBI/Green Alliance conference on the Environment. Tuesday 24 October 2000. www.number-10.gov.uk
1 - Morley Fund Management research has found that of the FTSE 100:
- 37 companies already publish an environmental report
- 21 companies have a report planned
- 38 companies did not have a report / did not make Morley aware of any report (however 11 included an environmental statement on their annual report or website)
- 4 companies gave no information / awaiting response
2 - High risk sectors
The following industry sectors conduct activities with a high risk of direct negative environmental impact.
Aerospace & defence
Automobiles
Chemicals
Construction & building materials
Electricity
Electronic & electrical
Forestry & Paper
Gas distribution
Healthcare
Mining
Oil & gas
Packaging
Pharmaceuticals
Real Estate
Steel & other metals
Transport
Waste Management
Water
Morley Fund Management
Morley Fund Management is an independently managed, London based, asset management business with Ł106 billion under management. It has investment professionals based in Boston, Tokyo, Singapore and Dublin.
Morley is a wholly owned subsidiary of the CGNU Group and manages institutional funds under the Morley brand. It also acts as investment manager for a range of retail investment funds, marketed under the Norwich Union brand.
CGU plc and Norwich Union plc merged on 30 May 2000 to create CGNU plc, the UK's largest insurance group and one of the top-five insurers in Europe with substantial positions in other markets around the world, making it the world's sixth largest insurer based on gross worldwide premiums.
Morley Fund Management is a business name of Morley Fund Management Limited (incorporated in England with Registered No. 1151805 and Registered Office 1 Poultry London EC2R 8EJ) and Norwich Union Investment Management Limited (incorporated in England with Registered No. 2152949 and Registered Office 8 Surrey Street Norwich NR1 3NG) both regulated by IMRO and members of the CGNU Group