UN Pension Fund: critical need for culture transformation in investments, says UN internal audit, 15 September 2020

UN internal auditors substantiate findings of the UN Participant Representatives to the Pension Board and state that the UN Office of Investment Management is in critical need of a transformation to a harmonious, high-performing and ethical culture. (A/75/215, link to the full audit below).

 

The UN Participants to the Pension Board said the following in their recent communique to their 85,000 active UN staff constituents: 

 

"How We’re Protecting Your UN Pension – Report from the Board (September 8, 2020)

 

We highlighted critical audit findings

 

OIOS audit on OIM governance. Last year we raised the alarm on the toxic work culture, allegations of retaliation, and lack of safeguards on decision-making within the investment team, and the management of conflicts of interest. OIOS (the internal auditors) substantiated these findings. While the new RSG (Representative of the Secretary-General for Investments) has committed to addressing these we continue to be concerned about the slow rate of implementation of changes relating to behaviours that would not be acceptable in financial institutions. OIOS also recommended that OIM (the Office of Investment Management) be directed by a CIO (Chief Investments Office). We therefore believe that the position should be advertised…..

 

Our work to jmprove the management of your investments is paying off

 

The new head of the Office of Investment Management, known as the representative of the Secretary-General (RSG), presented the state of the Fund’s investments. While the current economic situation remains volatile, the Fund is in a good financial position. This is in part due to the unprecedented level of intervention of governments and central banks to maintain the high value of financial markets. Furthermore, a number of concerns we raised last year with the management of our investments are expected to be addressed by the incoming RSG (as discussed during our townhall last April. We will be following up closely.

 

With regards to environmental, social and governance (ESG) criteria for investment, something you all have been vocal about, we are pleased to hear that after two years of mobilization by us based on your feedback, a policy will be finalized soon.”

Link to the audit:

https://undocs.org/pdf?symbol=en/A/75/215

See the full UN text of the Participant Representatives' communique here:

http://unpension.blogspot.com/2020/09/un-pension-fund-un-participant.html