Member Affiliates' News
May/June 2008
New Member Affiliates
Cheuvreux joins Eurosif
SRI research is a key dimension of CA Cheuvreux's expertise. By providing itself with the means to take into account all extra-financial criteria and long-term considerations, CA Cheuvreux has enhanced its capability to produce more precise and more relevant equity research. Present in nine countries across Europe, and covering nearly 800 stocks with an approach organised by country and sector, CA Cheuvreux is able to provide institutional clients with local and pan-European cutting-edge perspectives on investment opportunities.
IDEAM joins Eurosif
Founded in July 2003, IDEAM has been the first French asset manager to specialize in SRI. It manages a wide range of mutual funds meeting the requirements of institutional, corporate and retail clients. IDEAM is also deeply implied in the promotion of sustainable values.
oekom joins Eurosif
oekom research AG is one of the world's leading rating agencies and provides the crucial head start in the segment of sustainable investments. Being the partner of institutional investors and financial service providers, they develop innovative investment strategies that combine sustainability research with a high rate of return.
Member Affiliate News
ABP releases first ever Responsible Investment Report
ABP took major steps in 2007 with regards to sustainability by integrating environment, social and governance (ESG) criteria into their investment choices. This led to the publication of a separate report on the pension fund’s first ESG investment policy in 2007. A high level of transparency is pursued in respect of the fund’s investment categories. The Responsible Investment Report demonstrates that sustainability has become a key aspect in ABP’s investment policy. It supports the long-term character of the investment vision, as well as the resilience of the fund, in good and bad times.
http://abp.turnpages.nl/DS2/public/slot054/
ASSET4 Sponsors Study of Leading European Pension Funds
In conjunction with the German Federal Environment Ministry, ASSET4 has commissioned a study of leading European Pension Funds on the issue of long-term and sustainable investments. The study was conducted by Dr. Axel Hesse, a leading consultant in the area of Sustainable Development Management. The study found that while leading pension funds are clearly long-term investors, most investors in the financial markets act in a too short-term manner, for example with a maximum horizon of 2 years. Respondents also agreed that pension funds are currently making insufficient use of research with a long-term orientation. They expect that focusing on industry-specific KPIs and sustainability research integration into mainstream research will most likely lead to long-term, risk-adjusted outperformance, whereas approaches that are too broad are more likely to lead to underperformance.
Read a summary of the highlights
CAAM represented at the Global Reporting Initiative (GRI)
CAAM has joined a GRI working group of approximately 15 international investors from different parts of the investment chain including pension funds, asset managers and brokers to develop further guidance to companies seeking to measure and report their economic, environmental, and social performance. Additionally, CAAM has joined the working group responsible for determining the global reporting guidelines specifically tailored for the food processing sector. CAAM joins alongside participants from the food sector such as Nestlé, Archer Daniels, Danisco, Tyson Foods and General Mills. The stakeholder organizations are WWF, IUCN, Fair Trade, health & nutrition academic and emerging market advocacy groups. In both working groups, CAAM is the only participating French asset manager and in the case of the food sector group, CAAM has been chosen as the representative for the entire investor community.
Carbon Disclosure Project launches findings on supply chain carbon emissions
The Carbon Disclosure Project’s (CDP) Supply Chain Leadership Collaboration (SCLC) is an effort to help companies better understand the climate impacts within their supply chains. Twelve companies (members) participated in a pilot collaboration launched in October 2007 and completed in February 2008. Members distributed surveys to 328 suppliers, requesting information on their climate change initiatives. Forty-four percent of suppliers solicited responded. A particularly noteworthy finding was that, of the 144 responding suppliers, 95 companies submitted information to CDP for the first time. The number of new reporters is evidence of how supply chain initiatives can create excellent penetration into industry for broader disclosure on climate change planning.
Centre Info Report on extra-financial issues of the REACH regulation
EthiFinance, in collaboration with its partner Centre Info, issued the first thematic report on extra-financial challenges associated to REACH (Registration, Evaluation, Authorization and Restriction of Chemicals) regulation enforced by the EU in June 2007. The report “The REACH Regulation - Transparency of companies with reference to their compliance with safety standards - Economic impacts, extra-financial risks and opportunities for companies” issued by EthiFinance shows that there is a generally poor disclosure by companies about the integration of REACH regulations. This is even more apparent for the small and mid cap companies; REACH requirements seem to be better integrated in companies where the integration of environmental considerations is high.
Domini Social Investments Announces Corporate Engagement Successes
Domini recently announced that it withdrew shareholder proposals after reaching agreements on sustainable forestry and climate change with Best Buy, Home Depot, Lowe’s, MeadWestvaco and Procter & Gamble. Domini also recently convinced American Express to begin annual public disclosure of its political contributions. In addition, Domini, Disney, McDonald’s and other investors released the final report of Project Kaleidoscope, a multi-stakeholder project to improve working conditions in the overseas factories that supply U.S. corporations. Risk Metrics Group, a leading proxy voting advisory service, also recognized Domini for its leadership in proxy voting and corporate governance.
Economistas sin Fronteras (ESF) publishes pioneer book on SRI in Spain
“How to Encourage Socially Responsible Investment in Spain” published by ESF and Universidad Nacional a Distancia (UNED) stresses that the SRI is actually a “great unknown” in Spain and its development is considerably delayed compared to other countries. This publication, financed by the Ministry of Labour and Social Affairs (MLSA), puts into perspective for the first time the expectations of Spanish society and the institutional investors in terms of SRI, and analyses whether or not the characteristics of the limited sphere of responsible financial products offered in the Spanish market relates to the existing demand.
EIRIS publishes FTSE100 ESG snapshot
Global responsible investment specialists EIRIS released research charting the progress FTSE100 companies have made on key environmental, social and governance (ESG) issues over the last five years. “FTSE100 snapshot: Trends in ESG performance” highlights the key role responsible investors can play in encouraging some of the world’s biggest companies to improve their corporate social responsibility practices. Findings show that FTSE100 companies are making good progress on environmental, social and governance issues, however a minority of companies continue to demonstrate poor performance. The biggest improvements have been seen in environmental policy development, as well as human rights and supply chain management.
FTSE and BME Launch Spanish Responsible Investment Index
FTSE Group (FTSE), the award-winning global index provider, and Bolsas y Mercados Españoles (BME), launch the FTSE4Good IBEX, a new responsible investment index made up of companies listed on the BME that demonstrate good practice in corporate social responsibility. The new index is specifically designed to support structured products, index funds, and ETFs, and will also actively encourage Spanish companies to adopt international standards of responsible business practice. To be included in the index, companies need to demonstrate that they meet the FTSE4Good environmental and social criteria.
http://www.ftse.com/Indices/FTSE4Good_IBEX_Index/index.jsp
GES helps Investors spur Goldcorp to address human rights in Guatemala
In an unprecedented move Canadian mining firm Goldcorp Inc. has agreed to conduct an independent Human Rights Impact Assessment in Guatemala at the request of Canadian and Swedish shareholders. The company has faced criticism regarding the environmental and human rights impacts of its mining operations. GES Investment Services, an advisor to the filing First and Fourth Swedish National Pension Funds as well as the Second and Third Swedish National Pension Funds, supported the resolution through their collaborative body, the Ethical Council.
Greenpeace China publishes Green Investment newsletter
This quarterly newsletter, targeting the finance community, will share important information about environmental risks and issues that Greenpeace china has uncovered during their on-the-ground experiences and investigations associated with their major campaign issues. China’s phenomenal economic growth during the last two decades has created unprecedented environmental challenges for the country and the world as a whole. Greenpeace firmly believes that such economic development should never be achieved by sacrificing the environment.
http://www.greenpeace.org/china/en/green-investment
KLP supports international ban of cluster munitions
The final negotiations on an international ban of cluster munitions took place in Dublin, Ireland 19–30th of May. 100 governments and 250 non-governmental organizations participated. As a responsible institutional investor, KLP welcomes a ban and urges governments to commit to the treaty, aiming at safeguarding civilians. KLP has since 2002 excluded companies violating international norms – including cluster bomb producers. Illegalizing the use, production, transfer and stockpiling of cluster bombs worldwide, is an important step towards eliminating these activities on the global market. KLP encourages other investors to influence their governments in order to achieve a widely ratified treaty. KLP has expressed its support in an article in a Norwegian daily. Read the whole article: http://www.dagsavisen.no/meninger/article346360.ece
Read more about the Oslo process on cluster munitions: http://www.clusterprocess.org
Living Planet Fund receives stars
The Living Planet Fund Management Company is pleased to announce that Standard and Poors / Morningstar has recently assessed the Living Planet Fund - Equity, and has rated its institutional units (Class B) with four stars.
Mercer’s research process expanded to rate all managers on ESG capabilities
Mercer has further evolved its manager research process to evaluate the extent to which fund managers pro-actively integrate environmental, social and governance factors (ESG) into their mainstream investment process. The move comes as institutional asset owners are becoming increasingly interested in whether managers behave as active owners of capital and whether they reflect the materiality of ESG in their investment decision-making. Mercer’s existing ESG research process has been expanded to rate all managers on their ESG capabilities at strategy level. Going forward, ESG questions will be asked of every manager in the Mercer database and included on every research meeting agenda.
Insight Investment looks at FTSE100 and GHG Emissions: Taking the Temperature
Insight Investment has published a major report benchmarking the FTSE100 and large cap European stocks on how they manage their greenhouse gas emissions. The report discusses the policy and investment implications of this research.
oekom research: new risk management tool for emerging markets
oekom research’s Emerging Markets Risk Assessment (EMRA) forms a sound basis for companies and investors making decisions on capital spending, insurance and investment. EMRA applies oekom research’s comprehensive country-rating experience to the evaluation of risks in Newly Industrialised Countries (NICs) and developing countries. As part of the EMRA process, oekom’s analysts document and evaluate the current social and environmental situation in emerging markets. The aspects they examine include the situation as regards employment rights and human rights, the extent of bribery and corruption, the environmental situation and exposure to natural hazards. EMRA is designed for all companies which are involved in NICs and developing countries, whether as capital investors or direct investors, or seeking business partners and suppliers in these countries.
LuxFlag welcomes four new associate members
LuxFlag, which counts ALFI (Association of the Luxembourg Fund Industry) as charter member, is an independent non profitable organization based in Luxembourg that aims to promote Microfinance by awarding a distinctive label to eligible Microfinance Investment Vehicles (MIVs). The LuxFlag Microfinance Label ensures that a fund is predominantly invested in Microfinance and meets an international standard recognized by experts in the field. LuxFlag is pleased to announce that on April 7, 2008, four new organizations joined LuxFlag as associate members: European Fund Administration, Ernst & Young, PwC and Theisen Schiltz. LuxFlag’s other associate members include Citigroup, Elvinger Hoss & Prussen and PlaNet Finance, which became members on October 8, 2007; Deloitte SA, HSBC Securities Services (Luxembourg) SA and KPMG since December 10, 2007; and Arendt & Medernach, Linklaters LLP and Loyens & Loeff, which joined on February, 11, 2007. More information is available on www.luxflag.org.
Trucost and Style Research partner to enhance carbon analysis of portfolios
Style Research and environmental research organisation Trucost have launched a partnership to provide an enhanced analysis of the carbon performance of portfolios to fund managers. The partnership means that even more asset managers have direct access to Trucost data, and can analyse the carbon impacts of portfolios worldwide using holdings-based Style-and-Risk analysis software. Asset managers can analyse the carbon performance of equity portfolios against a chosen benchmark, such as the FTSE All-Share, S&P 500 or Russell 1000. Funds with larger carbon footprints could have greater exposure to carbon costs imposed by policy measures to address climate change.
Vigeo’s first positive net results consolidated at group level
In line with the road map set out by the shareholders when Vigeo was founded in 2002, the agency is showing positive net results for the first time. These results are consolidated for all four group entities: Bagnolet, the subsidiaries in Brussels and Milan, and the branch in Casablanca. Produced in accordance with IFRS standards and fully certified, these accounts represent the final stage of the process of integration of Stock at Stake (now Vigeo Belgium) and Avanzi SRI Research (Vigeo Italia). Vigeo’s General Assembly took place on 28 May 2008. The consolidated turnover comes to € 6.5 million for 2007 (an increase of 25% from 2006) including € 4 million for SRI research, and € 2 million for the CSR Audit activities.
