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Pensions Bill

I rise briefly, as a former board member of Christian Aid and Anti-Slavery International, to support the amendments, and particularly that on ethical investment. I agree with the thrust of the first amendment but I recognise, as did the noble Lord, Lord Skelmersdale, that disinvestment from countries such as Sudan or Zimbabwe is an extremely difficult proposition. How do you disaggregate the elements of an investment in a large or small company? I confess that I have always been uneasy in the past when aid givers tread into high finance, but nowadays it is different. Aid organisations and groups such as the Aegis Trust can muster great expertise in ethically and socially responsible investment. That is now becoming mainstream in the City. My former noble friend, the noble Lord, Lord Jopling, whom I hope will speak, is himself a good example because he embodies a combination of those skills. I sympathise with trustees who are asked to maximise their investments. I have listened to the arguments about fiduciary duties. However, those should not conflict with an ethical policy; the contrary is the case. These days, no one wants to invest in companies that use the most serious forms of child labour; that has been well exposed recently on ““Panorama””, ““Dispatches”” and other programmes. The ESG practices need not now be seen in a category that is far apart from ordinary investment. More effective management of those issues will surely have a positive impact on investment and represent a financial benefit. It is right that the Bill should include an express commitment to those, especially when we are considering such an important public fund. On those grounds, I support the amendment.