The ethos Foundation joins a group of European institutional investors (including ISIS Asset Management and the Universities Superannuation Scheme Ltd (USS) in the United Kingdom) in launching an investor statement with the aim of exerting pressure on pharmaceutical companies regarding the public health crisis in developing countries. The group of investors supporting the statement represents CHF 1300 billion (£ 600 billion) in funds under management.
The statement outlines concerns about the long-term impact of the public health crisis in developing countries and argues for pharmaceutical companies to take proactive action, in partnership with governments, including in particular the adoption of a differential pricing policy, which would enhance access to urgently needed medicines in these countries.
It sets out a framework of good practice which it urges company directors to consider in their management decisions and disclosures, and is intended to be an additional tool for investors and analysts to assess the long-term investment value of pharmaceutical companies.
The framework has been developed in consultation with industry, the wider investment community and other informed organisations (eg UK government, World Health Organisation, Oxfam). It does not seek to prescribe a particular approach but calls upon companies to demonstrate that they have fully considered the risks and opportunities they face and have effective policies and processes in place for dealing with the challenges. As such, it is aligned with the Association of British Insurers' Disclosure Guidelines on Social Responsibility.
For more information and receive the framework e-mail
cschum@ethosfund.ch
