An investor-focused charity has urged the next UK government to improve the way the financial sector is regulated.
ShareAction released a manifesto campaigning to make sure the finance industry correctly addresses the social and environmental issues facing the country.
Six key policies were outlined by the charity as it aims to bring responsible investing to the forefront at a time when issues such as climate change and inequality are rife.
These policies include:
- Amending fiduciary duty law governing pension funds so that the definition of “best interests” includes a climate and social focus.
- Forcing companies to report on their social impact and the risk posed to operations by social and environmental issues.
- Introducing mandatory ethnicity pay gap reports for companies with more than 250 workers.
ShareAction’s report comes ahead of the UK general election later this year, with parties expected to release their manifestos soon.
“Too often, the rules that underpin investment activities act as a barrier to innovation,” ShareAction said in the manifesto.
“UK policymakers have the chance to drive action at scale by setting a clear direction and high standards, promoting better regulation and increased transparency, and ensuring that companies and financial institutions are not acting contrary to the interests of the society in which they operate.”