Friends Provident extends ethical role

Financial services group Friends Provident, which recently announced that it is going to de-mutualise and get a stock market listing, has announced that it is to extend its ethical scrutiny across the whole £15 billion share portfolio. It will be the first big investment manager to take such an active role with all its share investments. Initially the firm will concentrate on four issues: environmental management, climate change, human rights and labour standards. Chief executive Keith Satchell described the approach as "engagement" with companies. "Good corporate practice on human rights, child labour and environmental pollution is good for society but it's also good for shareholders," he said.

Friends Provident will also be stepping up this kind of activity. It will be prepared to join other shareholders to put critical resolutions to company meetings, and will vote against adopting annual reports if they do not adequately address social and environmental issues.