FTSE 100 firms lagging on data, half of schemes have impact investments

FTSE 100 firms lagging on diversity data

Analysis from the Chartered Institute of Personnel and Development shows that a majority of FTSE 100 companies do not disclose data on skills investment, workforce diversity, or employee welfare in their annual reports. The report, compiled with the Pensions and Lifetime Savings Association and Railpen, urged employers to improve transparency after discovering that quality of reporting across seven key areas was “generally poor”, and the use of data to evidence commitment to diversity and welfare was “ad-hoc”. In response to the findings, the organisations are urging FTSE 100 companies to provide greater transparency over how they recruit, invest in and manage their workforce. They are also calling on key parties — such as the Financial Reporting Council, investors and representative business groups — to come together to agree a baseline framework for workforce reporting.

Half of UK schemes do impact investing

Half of UK pension schemes now hold some form of impact investment, focused on positive social or environmental outcomes, while nine in 10 are looking to make such investments in the UK in the future, according to a survey from Pensions for Purpose and Big Society Capital. The survey, which covered 17 pension schemes and four advisers with a total of £150bn in assets under management, found that where impact investments were already held, they accounted for almost 5 per cent of AUM, with social infrastructure — such as schools and hospitals — and social housing being the most popular categories. Investments were weighted towards environmental impact, however, with greater awareness of climate issues coupled with a lack of appropriate social impact investment products cited as the reason.