SRI News in Europe and elsewhere
February 2007
Marks & Spencer Money announce new multi-managed ethical fund
Marks & Spencer Money has announced that it will be launching an ethical fund in response to the number of consumers who say they want to be socially conscious with their money. Research conducted by the bank indicates more than one in five investors gives consideration to ethical investment when choosing an account and see it as a mainstream option.
Sweden’s AP funds coordinate ethics activities and set up a joint Ethical Council
Sweden’s national pension buffer funds, AP1, AP2, AP3 and AP4, have coordinated their SRI analysis of environmental and ethical compliance in the foreign companies where the funds have holdings. The collaboration will involve monitoring of the funds’ investment portfolios with regard to violation of international conventions, analysis and dialogue with the portfolio companies.
Novethic reports French SRI market valued at €12.5 billion, including €3.6 billion invested in bonds
The 137 SRI funds now available in France have assets under management valued at more than 12 billion euros (compared with 10 billion euros at year-end 2005), an increase of 26% in one year.
UK Environment Agency searching for socially and environmentally responsible investment strategy for pension scheme
The Environment Agency is looking for a manager to invest £50m (€75.5m) in a diverse UK non-gilt fixed interest portfolio for its £1.5bn pension scheme. They require that responses have to include “an explanation in less than 500 words of how sustainable environmentally responsible investment and corporate environmental governance would be integrated into the investment process.”
Gates Foundation investment strategy and mission questioned
The Bill & Melinda Gates Foundation, the world’s largest philanthropic body with $35bn in assets, ruled out screening companies in which it invested based on factors such as their environmental record or lending policies arguing issues of social responsibility were too complex to be integrated into its investment approach. Penny Shepherd, chief executive of the UK Social Investment Forum, said: “This is a rather out-dated perspective. The evidence is that you can invest responsibly without damaging your financial returns.”
*As a reminder, Eurosif and the Bellagio Forum have developed the PRIME Toolkit, the Primer for Responsible Investment Management of Endowments, in order to meet the growing needs of such foundations.
New Climate Report From Citigroup Investment Research
Acknowledging WRI's contribution, Citigroup Investment Research (CIR) recently released a major report entitled, Climatic Consequences: Investment Implications of a Changing Climate. The report, authored by CIR's Chief Investment Officer, presents thematic investment opportunities around climate change, and summarizes the consequences of climate change in terms of physical, regulatory, and behavioural implications. The report argues that a variety of entities (governments, regulators, corporations, and individuals) are reacting to the perceived climate change threat, and identifies 74 companies (across 21 industries and based in 18 countries) that seem well positioned to benefit from these trends.
France introduces new sustainable banking product at the retail level
The new sustainable savings account (“livret de développement durable”) replaces the French “codevi” and is available to the general public as of January 2007. This product, first announced by the French government in October 2006, serves the same purpose as the “codevi” (which was used to finance industrial projects) but now allows banks to invest in more sustainable oriented projects.
'Worldwide implications' to EU electro/chemical waste restriction
Tough EU policies on electronic and chemical waste will influence markets, the environment and regulations worldwide, according to a study by two US academic experts with several countries already introducing similar laws.
WEF report: world not ready for increasing global risks
Governments and corporations do not have the right mechanisms in place to deal with increasing global risks such as climate change, according to a new report prepared for the annual World Economic Forum meeting in Davos.
