Investor Transparency on ESG Practices

Eurosif believes that EU policy-makers should foster the development of SRI among institutional investors, in particular in mandating disclosure with regards to what extent (if at all) extra-financial (“ESG”) considerations are taken into account in the selection, retention and realisation of their investments; and disclose their policy in relation to the exercise of the voting rights attached to their investments.

Institutional investors, such as pension funds and insurers, represent long-term beneficiaries who have a natural interest in preserving wealth in their investment portfolios. They are also holders of some of the largest pools of investment capital with the greatest potential impact on industry practices. Within the financial arena, institutional investors determine capital allocation and are therefore crucial to encouraging both corporations and financial institutions to move towards more sustainable behavior by incorporating forward-looking, long-term perspectives into their investment decisions.

In this agenda, extra-financial factors (“ESG”) have a key role to play. There is a growing consensus in the financial community that taking ESG issues into consideration is consistent with the fiduciary duty of investors when it impacts financial returns. ESG issues such as climate change, resource scarcity, misaligned executive compensation or corruption for instance, can have material impacts on long-term investment portfolio performance.

Policy Updates:

The European Commission launches a fiduciary duty consultation

The European Commission steps up Today, the 13th of November, the European Commission launched a public consultation on providing legal ...

PensionsAge – Embracing ESG

In an article for the PensionsAge October 2017 magazine (free registration required), Andrew Williams talks to Eurosif's Executive Director, Flavia ...

ESAs present advice on PRIIPs with environmental or social objectives

On the 31st of May 2016, the European Commission mandated the Joint Committee to provide its technical advice specifying the ...

ESAs publish a joint consultation paper on PRIIPs with environmental or social objectives

On Friday 10th of February 2017, the European Supervisory Authorities (ESAs) launched a consultation on a proposal to set minimum ...

MEPs vote to delay PRIIPs regulation

On the 28th of November 2016, the Economic and Monetary Affairs (ECON) Committee of the European Parliament approved an amending ...

Next steps in embedding corporate responsibility

VBDO has just published the 2016 edition of its AGM report. Titled 'Next steps in embedding corporate responsibility', the report ...

Eurosif joins coalition to push for ESG risk management in new IORPs Directive

The European Commission’s revision proposal (2014/0091(COD)) included a requirement for all IORPs to consider ‘new or emerging risks relating to climate change, ...