Public Policy and Responsible Investment

1
Public Policy and Responsible Investment

• Ran Goel
• May 29, 2007

2
Public policy on the agenda

• More attention to public policy role
• in RI than ever before
• Australia PJC - Corporate responsibility
  Managing risk and creating value (06)
• Australia CAMAC - Social Responsibility of Corps
  (06)
• Canada NRTEE - State of the Debate (07)
• Canada National Roundtables on CSR and
  Extractive Industries (07)
• KPMG Carrots and Sticks (06)
• Stratos, Innovest, World Economic Forum

3
Overview

• Purpose inventory of key public policies
  affecting responsible investment
• Methodology desk-based with advisory committee
  support.
• Limitations
• Report published later this summer

4
Scope and Taxonomy

• Corporate disclosure
• Mandatory
• Promoting better disclosure
• Institutional investors
• Disclosure
• Mandatory RI through public funds
• Enhanced shareholder rights
• Retail investors
• Promoting RI

5
Some Highlights

• UK Pensions Act
• UK Companies Act 2006
• Institutional investor voting option
• Duty to promote success
• Shareholder derivative actions
• Extended business review
• Influence of GRI
• Public pension funds explicit RI mandates

6
Mind the Gap

• Canada as laggard?
• Unanswered questions
• Comments very welcome
• Other policies to include?
• Publications to review?
• Gaps/leadership to highlight?
• ran.goel_at_utoronto.ca