November 2006

Time for a rethink on responsible investing

Those who care about sustainable development need to adopt a new approach, write Christoph Butz, Stephen Barber and Jean Laville in the Financial Time. The article argues that materiality for the company is unrelated to the sustainability of the action itself. Read the article

Stern Review: Climate action now will avoid future economic chaos

The former World Bank chief economist said that models used in the report demonstrate that it would cost as little as 1% of global GDP every year to keep global warming to manageable levels. In contrast, it warned that inaction could trigger powerful storms, floods or heat waves that could cost the global economy "at least 5%" of GDP each year and up to 20% in the worst-case scenario. The end result could be an economic crisis "on a scale similar to those associated with the great wars and the economic depression of the first half of the 20th century". Stern also said that tackling climate change is "a pro-growth strategy for the longer term" as reducing carbon emissions will create new jobs and foster innovation and technology. More info

Global warming; investors urge more company action

Institutional investors managing assets worth more than €1,300bn have pledged to use their collective financial muscle to encourage companies and governments to act to reduce global greenhouse gas emissions. The Investor Statement on Climate Change, sponsored by the Institutional Investors Group on Climate Change (IIGCC) and signed by a number of Europe’s largest pension funds and asset managers, states that climate change is likely to have serious adverse impacts on the long-term interests of the millions of savers whose assets are managed by institutional investors and that investment decisions taken now will have a major impact on the world’s climate. The statement also identifies the critical role to be played by pension funds and their advisers in responding to climate change. More info

The Ultimate Recognition: Microfinance Pioneer Wins Nobel Peace Prize

The Nobel Peace prize had often gone to statesmen and humanitarian agencies, but never to a banker. Yet in honoring Bangladesh’s Muhammad Yunus, the judges made a clear statement this year: “Lasting peace cannot be achieved unless large population groups find ways in which to break out of poverty. Microcredit is one such means.” The organization Yunus founded, Grameen Bank, lends to more than 6 million low-income borrowers in Bangladesh and supports the development of microfinance worldwide. Read the press release.

WWF warns that Humanity's demands exceed our planet's capacity to sustain us

The world's population will be using twice as many resources as the planet can produce within 50 years unless there is immediate change in the way humanity lives, the environmental group WWF said in a report released in late October. The "Living Planet" report, a balance sheet of the world's environment published every other year, showed relentless growth in demand on the earth's capacity to produce clean air, and to provide raw materials, food and energy. The WWF said carbon dioxide emissions from energy consumption were the fastest growing component of the index in that period, increasing more than ninefold. More info

Global Compact de-lists 335 companies

The United Nations Global Compact announced that it de-listed 335 companies for failing to issue a Communication on Progress (COP) report. The Global Compact is a voluntary initiative whereby businesses pledge to uphold ten principles in the areas of human rights, labor, the environment, and anti-corruption. Companies failing to issue COPs are first listed as " non-communicating" upon missing the first annual deadline for releasing COPs, then as " inactive" when they miss the second consecutive annual deadline, resulting in the de-listing. More info

GRI launched the “G3” guidelines

The Global Reporting Initiative announced in early October the release of the “G3” Guidelines for Sustainability Reporting, along with a full set of Indicator Protocols.The G3 Guidelines are the result of nearly two year’s worth of research, development, and consensus-seeking by multi-stakeholder technical working groups, each assigned to focus on different parts of the Guidelines. The changes in the new G3 version are chiefly aimed at increasing the user-friendliness of the Guidelines, and increasing the comparability of reports. More info.

UK Institutions become more active

Large pension funds are taking a more proactive approach to engaging with companies to maximise returns for scheme members, a new research by the National Association of Pension Funds (NAPF) reveals. http://www.napf.co.uk/

The ADVANCE Guide to Sustainable Value Calculations

As part of the ADVANCE project, the University of St. Andrews and the Institute for Futures Studies and Technology Assessment have published “The ADVANCE Guide to Sustainable Value Calculations”, a practitioner handbook on the application of the Sustainable Value approach. The Sustainable Value approach can expresses the value companies create with their economic, environmental and social resources in monetary terms. For more information or to download the survey please visit www.advance-project.org/ .

IFC awards grant to study environmental and social data for emerging market equity investors

The International Finance Corporation, the private arm of the World Bank, has awarded a $500,000 grant to CRISIL (the Indian rating agency), Standard & Poor’s, KLD, Trucost and CLSA, the winners of its research competition “Capturing Value.” The competition aimed to provide investors in emerging market equities with better research on companies’ environmental, social, and corporate governance performance and facilitate high-quality, long-term investment in emerging markets from pension funds and other investors worldwide. For more information contact: CapturingValue@ifc.org

Trade Unions & UN Bodies Focus on Environment, Workers' Health & Sustainable Development

Nearly 1,700 representatives attending the Congress of the International Trade Union Confederation (ITUC), supported in early November a resolution that sets the priorities for the international trade union movement to work on the environment, worker’s health and sustainable development. The adopted resolution establishes public and occupational health links to trade union environmental and sustainable development implementation through workplace, community and national actions. It also provides a mandate for trade union to work on these issues with various international organisations. More info

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