trocaire development review trinity college 11 th november 09 mark cumming

Trocaire Development ReviewTrinity college

11th November 09Mark Cumming

Background

•Reality for Trócaire’s Partners & Communities

•State pension fund in spotlight

Sunday Tribune: Revealed: our € 1/2 bn pension funds invested in Zimbabwe

Source - FoE

Global context

•UN John Ruggie & State duty to protect

•Pressure for ethics Consumers Business case

The case for Responsible Investment

•History of dealing with ethics

•UNPRI

•Hermes & active ownership

•Gaps

The NPRF

Norway Fund

•Principles

•Mechanisms

•Operational strategies

•Record on divestment

Norway Pension Fund

Positive screening

Active engagement / ownership

Negative screening Exclusion /divestment

Principle1% of fund –renewables etc

sustainability societal consensus internationally accepted norms

societal consensus internationally accepted norms

StrategyPositively screening

Active ownership

Avoidance Investigate companies

Satisfies

Political concerns to engage new green deal

Fiduciary duty to manage ESG concerns and signal to market

due diligence to ensure avoidance of complicity

due diligence to ensure avoidance of complicity

Responsible

NBIM implements

NBIM decides and implements

Council on Ethics evaluates, then recommends and Ministry of Finance decides on exclusion. NBIM implements

Council on Ethics evaluates, then recommends and Ministry of Finance decides on exclusion. NBIM implements

•Universality of principles

•Risk – return profile

•Capacity to influence

•An independent council

Applicability to Ireland