Aberdeen City Council has appointed the strategic alliance of State Street Global Advisors (SSgA) and Friends Ivory & Sime (FIS) to run a £300m (€488m) passively-managed portfolio following socially responsible investment (SRI) guidelines.

While SSgA ensures the portfolio tracks the index, the SRI team at FIS will engage with the companies it invests in. The team seeks to persuade management to adopt socially responsible best practice. For example, it has been active in persuading UK clothing companies to avoid purchasing from suppliers that use child labour.