World Bank's pension investments clash with principles

Washington

THE World Bank indirectly invests part of its US$18.8 billion staff pension fund in companies in industries such as coal and tobacco, holdings that clash with the development institution's own calls for ethical and low-carbon investing.

In an internal post to staff seen by Reuters, the World Bank's treasurer said around 40 per cent of the fund's equity holdings are actively or passively invested against equity index funds, which include companies in industries associated with environmental and health problems.

Two World Bank sources, who asked not to be identified, showed Reuters discussions between staff and managers on an internal site and a research not…