21 May 2008

Rt Hon Mike O'Brien MP

Minister of State for Pensions Reform

National Ethical Investment Week

Wednesday, 21 May  2008

[Check against delivery]

 

Thanks to Roger Yates for his introduction and to Hugh Bayley MP for hosting the event.

I’d like to welcome the first ever National Ethical Investment Week. 

Not just because it embraces issues that are inherently good or right, but because I believe it is only by people and institutions embracing these concepts that we will create a better future for our children and grandchildren.

If we are to build a more successful, vibrant, modern economy we can no longer afford to view economic success as being in conflict with social and environmental goals. 

On the contrary these goals must be seen as integral to economic success and the very essence of sustainable development.

So I welcome the leadership shown by UK Social Investment Forum (UKSIF) in launching this week to celebrate and promote ethical investment.

It is important to engage consumers and encourage greater understanding of green and ethical investment.

I am delighted to hear that amongst those backing the week are not only financial institutions and IFAs but also leading charities, WWF-UK, Oxfam and the RSPB.

This represents an impressive demonstration of strong support for green and ethical investment.

Fairtrade fortnight / SR consumer

I have heard this event being described as equivalent to Fairtrade Fortnight for pensions and investments…

That event has helped to raise awareness of buying ethical products, promoting sustainable development and achieving justice through trade.

… so I hope this week’s events will be as successful as Fairtrade Fortnight has been in recent years. 

In fact, I understand, this event is the first of its kind in the world.

This shows that the UK is a world leader when it comes to Socially Responsible Investment.

This event shows the increasing interest consumers now have in making the right choices when it comes to what they buy and where they invest their money.

Twenty years ago, few knew where to find ethical products or socially responsible savings accounts. 

Today, you can’t walk down a supermarket aisle without seeing energy efficient light-bulbs or fairtrade coffee.

Because today, consumers are increasingly aware of the impact their decisions make on the world.

As your recent research shows, these trends are set to continue, because it is the young who are driving this change. 

With two thirds of teenagers saying they will use their spending power to make a real difference in social and environmental issues.

Pensions – personal accounts

In my own area as Pensions Minister, ethical investment is making an impact.

We are currently taking through the biggest reforms to the pensions landscape since the State Pension was created 100 years ago.

By 2015 we aim to see up to 9 million people saving for the first time or saving more.

Many of those saving in a pension for the first time will be working for small employers, the local garage or the chippy round the corner.

So we are setting up a national saving scheme for these people, called Personal Accounts.

We don’t want Personal Accounts to be overcomplicated but do want there to a choice of funds for those who desire it.

The importance of choice means that, green and ethical investment has been attracting some debate on floor of the House of Commons and beyond.

Recent research has shown that nearly a quarter of those who could be enrolled in Personal Accounts said they were interested in ethical investment options, often regardless of return.

I cannot predict what the investment strategy of Personal Accounts will be because these decisions are the responsibility of the scheme trustee.

But I do recognise the importance of socially responsible investment, which is why I was pleased PADA announced they will be consulting in the autumn on responsible investment in relation to the system as a whole.

Congratulations

So let me, again, pay tribute to this new National Ethical Investment Week.

It is a bold initiative with an impressive array of events and linking up many diverse organisations from Church groups to investment boutiques.

It marks the beginning of a serious national conversation on how investors can use their money to make our society better.

And it proves to people that they have the choice to make a difference to the lives of millions around the globe.

So many congratulations to UKSIF for organising this event.

To the sponsors – Henderson Global Investors, Norwich Union and Friends Provident

To WWF-UK who do such good work supporting the UKSIF community outreach programme.

And to everyone around the country who has organised events and activities during this week.

I have no doubt that this week will be a great success, and I look forward to seeing progress made in the coming years.

I am now delighted to handover to Peter Michaelis, Head of Sustainable and Responsible Investment at Norwich Union.