SRI News
May/June 2008
European Investment Bank asks public about Environmental and Social Statement
The European Investment Bank (EIB) has launched a Public Consultation on its Environmental and Social Statement. Interested organisations and individuals are invited to comment on the draft document. Suggestions or comments should be sent before 20 June 2008. A Second round of public consultation will take place in September. The final draft will be published, for information, on the EIB website three weeks prior to consideration by the EIB Board of Directors. Owned by the European Union (EU) Member States, the EIB is the EU's long-term lending institution, financing projects that promote European economic development and integration. The EIB operates on a non-profit maximising basis and lends at close to the cost of borrowing.
Find out about EIB consultation process
New Social Venture Fund in Australia
The creation of the Third Link Growth Fund is a unique and pioneering way of contributing to that goal. Not only does it provide you with the opportunity to participate in a professionally managed investment fund, but all fees received by Third Link Investment Managers Pty Limited from managing the Fund’s investments, net of expenses incurred, will go to support the non-profit sector. The Fund’s name signifies this important connection between the third sector and you.
New Responsible Investment Report Reveals Wide Variation in Fund Manager Competencies and Practices
Responsible investment specialists RImetrics published ’Responsible Investment 2008: an analysis and measurement of the competencies and practices of leading asset managers’. This report reveals that many mainstream fund managers are improving their understanding of environmental, social and corporate governance ESG issues and are beginning to integrate this knowledge into their investment processes. However the report also shows the industry as a whole is a long way from best practice, with competencies and practices varying greatly from manager to manager.
FRR Adopts New Responsible Investment Strategy
The Supervisory Board for FRR’s investment decisions recently adopted a responsible investment strategy for the five years to come. In particular, this strategy requires that all of the asset classes in which the Fund invests be subject to a preliminary examination on the basis of social, environmental and corporate governance criteria. This systematic review will help to determine if all or some of these criteria can be incorporated into the financial management of investment portfolios, which the FRR has begun to do for European equities.
EXANE and ALTEDIA launch a responsible funds index
Exane Derivatives has partnered with Altedia Investment Consulting, a European index that manages responsible and sustainable investment funds, to launch the ALTEXA Responsible Funds Index. It consists of two indices. The first Best in Class index consists of a quantitative selection of the 8 best funds, with an adjusted score for long-term risk. The second Thematic index covers a quantitative selection of the 8 best specialised funds (renewable energy alternatives, water, etc.), also with an adjusted score for long-term risk.
www.exane.com & www.altedia.fr
Oxford University report on SRI Fund Performance
A survey conducted by independent investment consultants Jewson Associates has reported that investment in ethical funds does not automatically lead to poor performance. The survey, commissioned by Oxford University, found that SRI funds can perform better than non-SRI funds, but levels of volatility or risk may be higher. The review compared UK, US, European and global equity SRI funds with non-SRI funds over a ten year period.
www.jewsonassociates.com & www.ox.ac.uk
Investors Applaud CVS/Caremark’s New Cosmetic Safety Policy
The policy, published in CVS/Caremark’s 2007 Corporate Social Responsibility Report, commits the company to “developing action plans to replace ingredients of concern” in its branded and private label products “when safer alternatives are available”. The company will encourage its manufacturing partners to do so as well. This comes in wake of shareholder resolutions and dialogue with investors led by Boston Common Asset Management. Most of the resolutions on toxic chemicals and product safety have been filed this year by investment managers working collaboratively as IEHN.A running list of resolutions, their filers, and outcomes is available at http://iehn.org/resolutions.shareholder.php.
