Pension fund pledges to take tougher stance human rights

One of the world’s largest institutional investors has said it will aim to be more ‘active’ and ‘robust’ on corporate governance in its dealings with companies.

In a new corporate governance policy statement, the US pension fund TIAA-CREF says it will encourage investors ‘to participate as active owners of the companies in which they invest’, especially on accounting standards, executive pay, disclosure and human rights.

The sixth update of its governance policy is intended to ‘facilitate a more robust dialogue between companies and their shareholders and to encourage more sustainable value creation’.

The new emphasis is partly a response to the extra shareholder rights granted by the Frank-Dodd Act, which TIAA-CREF says it will exploit, especially on new ‘say on pay’ rules requiring disclosure of executive compensation. The fund also suggests it will support shareholder resolutions proposing the separation of the roles of chairman and chief executive.