France's €28bn ($36bn) state pension fund, Fonds de Réserve pour les Retraites, has pioneered a new approach to socially responsible investing by writing to its equity managers asking them to explain how the 10 largest companies in their portfolios comply with its principles.

The fund has taken the step to study the impact of issues such as climate change and human rights on risk and performance at the companies in which it invests. One fund manager investing money for FRR claimed it had not said what it would do with the information. However, the FRR is asking two research groups to examine how its equity investments measure up to principles on socially responsible investment. One group will look at extra-financial reporting, such as the effect of climate change on the performance of European investments. The second will analyse risks associated with failures of investee companies to comply with human rights conventions. The FRR declined to comment on the letter.