Newsletter May 2006

United Nations Secretary-General Launches "Principles for Responsible Investment" backed by World's Largest Investors

In a historic development for global financial markets, United Nations Secretary-General Kofi Annan was today joined by a group of the world's largest institutional investors at the international launch of the Principles for Responsible Investment.

The heads of leading institutions from 16 countries, representing more than $2 trillion in assets owned, officially signed the Principles at a special launch event at the New York Stock Exchange. The Principles were developed during a nearly yearlong process convened by the UN Secretary-General and coordinated by the UN Environment Programme Finance Initiative (UNEP FI) and the UN Global Compact. In joining with institutional investors to develop the Principles, the United Nations collaborated with some of the world's most influential institutions – many of them public pension funds – involved in investment activities worldwide. http://www.unpri.org/principles/

Eurosif was part of the advisory group for the entire Principles for Responsible Investing process.

Norway’s Baerum tenders €73m in SRI

The Bærum municipality east of Oslo has tendered NOK570m (€73.5m) in socially responsible investing assets. The contract covers the management of global equities with SRI and low relative risk in Europe (50%), North America (30%) and the Far East (20%). Read more here.

FRR awards €600m SRI mandates

The FRR, the €26.6bn Fonds de Réserve pour les Retraites or French Pensions Reserve Fund, has awarded five asset managers a total of €600m in socially responsible investing mandates: (listed in alphabetical order): AGF Asset Management, Dexia Asset Management, Morley Fund Management, Pictet Asset Management & Sarasin Expertise Asset Management.

The FRR is one of the founding signatories of the Principles for Responsible Investing.
http://www.fondsdereserve.fr/ OR http://www.ipe.com/default.asp?article=20680

AGM Protestors criticize Shell's 'hypocrisy' and ECCR proposes shareholder resolution

The Ecumenical Council for corporate Responsibility (ECCR) proposed a resolution relating to the loss of production, environmental costs and reputation risk faced by Royal Dutch Shell plc.

Results of the vote at Shell's AGM on Resolution 15 initiated by ECCR were:

Votes for: 199,201,968 (6.83%), Votes against: 2,719,463,574 (93.17%), Votes withheld: 364,022,757 (5.5%). 12.33% of shareholders (6.83% voting for + 5.5% abstaining) did not support Shell management. Download article here.

EAI Initiative extends to North America

The Enhanced Analytics Initiative (EAI) announces that the CPP Investment Board and Calvert have become the first North American institutions to join EAI, taking the Initiative’s total assets under management to US$920 billion (€757bn). Read more here.

Swiss SRI boosted by pension funds

Pension funds have been the main reason why Switzerland’s socially responsible investment (SRI) volume has more than doubled since 2001, a new study claims.

Study Benchmarks Chemical Companies' Relative Exposure to REACH

Most large capitalization companies in the chemical sector indicate that the new REACH regulations will have a relatively minor effect on variable operating costs, according to a new survey by Innovest Strategic Advisors. For more information about the survey please contact Heather Langsner at langsner@innovestgroup.com. For more information: http://www.innovestgroup.com/ Or: http://www.greenbiz.com/news/news_third.cfm?NewsID=30869

Shareholder Network Launched to Curtail Toxics in Products

Seventeen investing organizations collectively representing more than $22 billion in assets under management have issued a joint statement calling for better disclosure regarding the risks of toxics in products. Read more here.

IFC claims major sustainable energy investment

The International Finance Corporation (IFC) allocated some 11% of its total investments in fiscal 2005 to projects with a sustainable energy component, according to its latest sustainability report, Choices Matter. Read more here.

CalPERS bans Sudan-linked companies

The board at the US$210bn California Public Employees' Retirement System (CalPERS) has banned investments in nine companies that do business in Sudan and called on other companies to severe ties with the genocide-linked country. Read more here .

Novethic sizes up French SRI market

On May 17th 2006 Novethic presented the results of their annual study on assets under management in the French SRI market. There has been an increase of 27% in 2006, compared to 2005, with a total of 8.8 billion euros, of which 58% are for institutional investors.
http://www.novethic.fr/novethic/upload/cp/100584.pdf

Rio Tinto Shareholders Address Labour Abuses

Two union-backed shareholder resolutions call on the European mining giant to adhere to international human rights conventions. Read more here.

BP and DuPont Receive Top Scores in First-Ever Ranking of 100 Global Companies on Climate Change Strategies

Ceres has issued a report analyzing how 100 leading companies are addressing the growing financial risks and opportunities from climate change whether from expanding greenhouse gas regulations, direct physical impacts or surging demand for climate-friendly technologies. http://www.ceres.org/news/news_item.php?nid=154

UC Davis study on CalPERS Finds Institutional Activism Improves Shareholder Value

The institutional activism practiced by the nation's largest public pension fund -- the California Public Employees' Retirement System -- can create billions of dollars in wealth for investors while expanding shareholder rights, according to a new study by a finance professor at the University of California. Read more here.

ISO and Social Responsibility

ISO holds its third Social Responsibility meeting this month, playing a major role in moving the SR standard toward completion. Download PDF here.

New International Business-Leadership Development Program Launched

Business for Social Responsibility (BSR), the leading U.S.-based global non-profit business organization focusing on corporate social responsibility, has agreed to jointly develop a new leadership training program with the Global Institute For Tomorrow (GIFT), an Asian think-tank. http://www.greenbiz.com/news/news_third.cfm?NewsID=30870

Non-financial sustainability key performance indicators on their way into financial reports of German Companies

As of 2005 German companies have to disclose material non-financial sustainability key performance indicators (KPIs) in their financial reports. http://www.sd-m.de/files/Hesse_SD-M_Deloitte_AddedValueLongTerm.pdf

Jupiter to launch new environmental investment trust

Jupiter announces the launch of a new environmental investment trust that will give investors the opportunity to benefit from increasing demand for environmental solutions. http://www.jupiteronline.co.uk/PIIFA/NewsViews/PressReleases/20060503_PIFAPR.htm

Partners for Financial Stability Program reports on CSR in Central and Eastern Europe

Partners for Financial Stability Program published its sixth semi-annual Survey of Reporting on Corporate Social Responsibility by the Ten Largest Listed Companies in 11 Central and Eastern European Countries. For more information: http://www.pfsprogram.org Or: http://www.csrwire.com/article.cgi/5559.html

New Report: Wall Street Analysts Concerned about Impact of Oil Prices, Energy Policies and Climate Risk on Auto Sector Companies

A new Ceres report released today finds that the uncertainty in the U.S. regarding the future course of energy and climate change policy is a major problem for investors and Wall Street analysts in assessing the value of auto companies. http://www.ceres.org/news/news_item.php?nid=169

IFC launches competition to improve extra-financial research for emerging market equity investors

IFC's Capturing Value program invites research houses, rating firms, index providers, and similar organizations to compete for grants to encourage high-quality, long-term investment in emerging markets from pension funds and other investors worldwide. http://www.ifc.org/ifcext/enviro.nsf/Content/SFMF_RFP_EmergingMarketEquities

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