Workers’ Capital Stewardship International Trade Union Perspectives Peter Chapman, SHARE, Canada TUC Trustee Network Conference 5 June 2006

Agenda Introduction – SHARE and Canada Challenges and opportunities International trade union cooperation

Shareholder Association for Research and Education (SHARE) Created by Canadian trade unions Promotes responsible investment for working Canadians Trustee education Shareholder activism and proxy voting Law reform

Pension funds in Canada 40% of workers have workplace pension Most plans are defined benefit, but… $800 billion (Cdn) in assets 17% of public equity market Approx 2000 member-nominated trustees

Challenges Legal interpretations of fiduciary duty Market short-termism Globalization of markets, corporations, and service providers

$12 trillion in worker capital assets Trade union role in governance Opportunities $12 trillion in worker capital assets Trade union role in governance Increasing acceptance of ESG factors UN Principles for Responsible Investment Disclosure, reporting and financial analysis Climate change is a catalyst

Committee on Workers’ Capital Brings together international trade union representatives to share information and develop strategies for joint action in the field of workers' capital Established in 1999

Areas of work Capacity building on pensions and workers’ capital by sharing best practices on pension investment and targeted investment Policy research and advocacy on corporate and financial market governance Encourage corporate accountability through shareholder activism and shareholder engagement

Examples of activities International lead trustees meeting (July 5) Coordinated shareholder engagement - James Hardie (Australia/Netherlands) Trade union financial services group OECD Principles of Corporate Governance Cataloging trustee education practices Global Reporting Initiative

For more information: ICFTU/TUAC/GUF Committee on Workers’ Capital www.workerscapital.org