Responsible Investor

reflection” to ensure that its success in attracting signatories does not become unwieldy, according to Thomson Investment Management News. Melvin reportedly said: “One of the difficulties is that there are different levels of experience and understanding of what engagement involves. And it will be a barrier if members of UN PRI put forward engagement ideas that are poorly understood by those that seek to participate in them.”

FTSE, the global index group has taken over the Impax Environmental Technology (ET50) Index. From December 2007, FTSE will calculate and manage the index, which will be rebranded as the FTSE ET50 Index and sold to investors as the basis for structured products, exchange traded funds and index funds.

The US government is to encourage investment in clean energy by agreeing to repay a portion of the commercial loans that fund alternative-energy projects, in the event of default in the financing, reports Reuters. The loan guarantees could cover financing for refineries producing ethanol made from farm waste, electric generating plants that capture greenhouse gas emissions and other clean-energy projects. The US Energy Department last week issued final regulations for up to $4bn in loan guarantees.
US companies are facing pressure from the Securities & Exchange Commission (SEC) to curb excessive executive pay following research that shows chief executives are paid up to 10 times more than other senior managers, reports the Financial Times. The paper

reported that the SEC is understood to have asked a number of companies to explain the reason for large pay gaps between top executives, as part of a review of corporate pay. The US Council of Institutional Investors, which represents more than $3,000bn in institutional assets, has also voiced concern at large disparities in executive pay.

European internal markets commissioner Charlie McCreevy has scrapped proposals to reform differential share voting rights in Europe favour of “one-share, one vote”. McCreevy said research on the topic showed no economic evidence of a link between preference shares and the economic performance of companies. He said that as a result there was no need for further action by the EU.

New Zealand Prime Minister Helen Clark has reportedly demanded a briefing about investments by the $13.1bn New Zealand Super Fund in oil companies operating in Myanmar after press reports revealed the fund had invested heavily in firms operating in the military-led country where protesters were recently shot by government forces. The Fund’s investment guidelines say it should specifically avoid prejudice to New Zealand’s reputation as a “responsible member of the world community.” The New Zealand government plans to allocate around $2bn a year to the Fund over the next 20 years and the fund is expected to grow to around $109bn by 2025, making it one of the largest funds in Australasia.

Not a member? Register here »