Pensions Q&A

A child gold miner in the DRC [Richard Wainwright]

The top ten questions and answers about the new Unearth Justice action to pension funds. What's it for? Will it work? What can I do to help?

1. What damage does mining really cause?
CAFOD partners have seen the damaging impacts of mining first hand.

Communities have been bullied off their land and their rights ignored by gold mining companies.

Water supplies of people living close to mines have been polluted. Environments have been destroyed, with the effects persisting long after mines have closed down.

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2. What’s my pension got do with the problems caused by mining?
Many of us invest in pensions to provide a secure income when we retire. The contributions that we make are invested by our pension funds, the vast majority of whom include mining companies in their portfolios.

Therefore we have a stake in mining companies and the money that we invest in our pension funds could be funding mining projects which force local communities from their homes and land, poison water supplies and cause environmental damage.

3. How much do pension funds really have invested in mining?
Pension funds control over a third of the total shares in the UK stock market. This gives them significant influence over the companies in which they invest.

Only pension funds that proactively don’t invest in mining are likely not to have mining companies in their portfolios. Ethical funds generally can invest in mining companies unless they have specifically stated that they will not do so.

4. Does CAFOD want pension funds to stop investing in mining?
No, CAFOD is not calling for disinvestment in mining companies.

Instead we want to see pension funds use their position as major shareholders to press companies to adopt more responsible practices. Through this process of engagement, better environmental or labour practices can be encouraged.

But pension funds will only be convinced about the need for responsible investment when they hear how important it is to their customers. They need to hear from us, their members.

5. So what is CAFOD asking pension funds to do?
Find out the social and environmental impacts of the mining companies in which they invest and use their influence as investors to change mining company practices that risk harming people’s rights, livelihoods and environments.

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6. If mining companies make the changes CAFOD is asking for, will this affect the value of my pension?
Adequate environmental and social standards shouldn’t be an optional extra. They make business sense too - investing in mining projects which don’t have these standards, exposes investors to financial risks.

For example, if a controversial mine goes ahead and this leads to widespread conflict, operations may have to be shut down. This would be very expensive for mining companies and investors.

If a company is aware of and acting on potential risks to people and the environment, this is a good sign that the overall management of a company is good.

CAFOD believes that good social and environmental policies not only help to protect local communities and the environment, but also help protect – and even improve - the value of people’s long term investment in their pensions.

7. Why will my pension fund listen to me or read my email/postcard?
Concern from their members, like us, is the best way to spur pension companies to act. It’s your money that’s invested, therefore it’s fair for you to expect your pension investments to reflect your values, as well bring in decent returns.

Pension funds may never have received campaign postcards before, so your card or email will get their attention. The more mail that they receive, the more they’ll take note.

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8. Why does CAFOD think this campaign will make any difference?
The Unearth Justice campaign has already made a difference.

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But this is not enough. CAFOD is now targeting pension funds as well as jewellers, so that the mining industry will feel the heat from a new and influential source – their owners and investors.

Pension fund engagement with companies has succeeded in changing company policy.

Read stories of success

9. What is FairPensions and how is CAFOD working with FairPensions?
FairPensions is an organisation that specialises in responsible investment and pension-company engagement.

FairPensions is working together with CAFOD on this campaign, providing expert advice and information and helping lobby pension companies.

More about FairPensions

10. What can I do for the campaign if I don’t have a pension - or if I have a pension which is not privately invested?
Please spread the word! Tell people that you know who do have pensions about the campaign action. The more mail that pension companies receive, the more they’ll take note.

take action for Unearth Justice

Take action: Shine a light in the darkness

Please sign our petition calling on the world's largest mining company to listen to communities in the Philippines worried about the effect mining will have on their land - plus send a personal message of solidarity to the people of Macambol