The campaign, supported by Amnesty International, Oxfam and WWF, claims that most UK pension funds have failed to keep up to date with changes affecting their duty towards their members’ ethical interests.

It is urging pension funds to review their investment practices, and use their shareholder power to influence and engage with the companies they effectively own, encouraging them to improve their social, environmental and ethical behaviour.

Alex van der Velden, former investment manager at JP Morgan and executive director of FairPensions, said responsible investment could not be left to the “whims” of fund managers.

“Pension funds need a clear policy of engaging with the companies they own, in line with the wishes of their own members,” he said. “People are increasingly unwilling for their own money to tacitly support environmental and human rights abuses.”

The warning comes as FairPensions has published guidance for pension funds, presenting the legal, financial and PR case for reviewing responsible investment practices. It sets out the basic steps to ensure compliance with industry best practice on responsible and ethical investment.

The guidance is available at www.fairpensions.org.uk