December 2009 Eurosif Newsletter
EUROSIF RELEASES INVESTMENT CONSULTANTS & RESPONSIBLE INVESTMENT STUDY
CALL FOR SPONSORS FOR 2010 EUROPEAN SRI MARKET STUDY SENT TO EUROSIF MEMBER AFFILIATES
STAY TUNED FOR REMUNERATION REPORT RELEASE FOLLOWED BY FOUR EVENTS ACROSS EUROPE IN JANUARY & FEBRUARY 2010
Eurosif Update
Eurosif Investment Consultants & Responsible Investment study
The first-ever Investment Consultant ESG Survey is now available. The study is sponsored by AXA Investment Managers, Bank Sarasin, SAM and Robeco. It examines the investment consultants' role in shaping investors' strategies, investment practices and asset manager selections, and reports on what extent investment consultancies integrate ESG issues into their offerings with clients. The study found that 89% of investment consultants anticipate an increase of client interest when it comes to environmental, social and governance (ESG) issues. The demand for investment consultants to take into account ESG issues is driven by a mixture of investor reputation, beneficiary pressure and an evolving view on fiduciary duty. All of these drivers create opportunities for ESG advisory services.
Download the Eurosif study.
See the SIF News section to read more about a similar study released by the US Social Investment Forum.
Article published with Le Monde / La Stampa / El Pais / ZEIT online / Le Temps Partnership
The most recent Le Monde article (PDF in French, English version available shortly) was published on December 7th, 2009. The article examines how companies in the industrial sector have reduced, or not, their CO2 emissions since “Le Monde Economie” first covered this topic (with the same companies) in 2006. Data was sourced from Ernst & Young while the French Social Investment Forum assisted with the analysis.
2010 European SRI Market Study open for sponsors
The Eurosif Sustainable and Responsible Investment (SRI) Study has quickly become one of the most important services that Eurosif provides for its affiliate membership as well as many other interested readers on European SRI trends. We are offering Member Affiliates a high profile sponsorship opportunity to be involved in the 2010 edition of this study. Sponsors will receive visibility through all Eurosif communications around the study, including the opportunity to host one of the launch events in Europe. Please contact Eurosif if you are interested.
Eurosif's Remuneration report to be released in January 2010 followed by series of events throughout Europe: stay tuned
This Eurosif theme report has been compiled in cooperation with EIRIS. The aim of the report is to illustrate the challenges and opportunities for companies related to remuneration, incentives and long-term sustainability, and propose recommendations for companies, policy-makers and responsible investors on this issue.For more information please contact us at contact@eurosif.org
Recent Eurosif speeches & events
"Protect, Respect, Remedy", November 10-11, 2009 – Stockholm, Sweden
Eurosif spoke on "The State as a Regulator": the role of the state in holding business to account, at this high-level conference based on the framework of the report "Protect, Respect, Remedy" by Professor John Ruggie.
AXA Investment Managers sponsorship event for Eurosif Investment Consultants & Responsible Investment study, December 2nd, London, UK, with support of UKSIF
Over 50 professionals including asset owners, consultants, asset managers and journalists came together to debate findings from the recent Eurosif study on the role investment consultants currently play in driving the inclusion of sustainability in investment decisions. Melissa McDonald, head of responsible investment at AXA Investment Managers says, “It is clear that there is a lack of understanding around the contribution of ESG investment to the sustainability of returns and a resulting lack of explicit client signals within the institutional investment process.
Bank Sarasin sponsorship event for Eurosif Investment Consultants & Responsible Investment study, December 4th, Frankfurt, Germany
The German investment community gathered at this event with a panel of experts providing insight from the consultant and institutional investor points of view. Frank Wettlauffer, Head Institutional Clients International at Bank Sarasin states, “With increasing numbers of sustainable strategies, asset classes and products, it is becoming easy for institutional investors to invest in attractive products and styles. Consultants screening the financial offerings in the market place therefore play an increasingly important role.”
Upcoming Eurosif speeches & events
ESADE’s 2009 Observatory for Socially Responsible Investment, December 10, 2009, Madrid, Spain
Prince of Wales Accounting for Sustainability Forum, December 17, 2009, UK
Sponsor events for Eurosif Investment Consultants & Responsible Investment study
SAM: January 25th, 2010, Zurich, Switzerland (invitation only)
Robeco: February 2010 (exact date and location to be decided)
ALFI SRI Conference, Luxembourg, February 9, 2010
EU Update
Eurosif attends 3rd EC Workshop: Civil society and NGOs, consumers, media perspectives on Disclosure of ESG Information: December 4, Brussels
The civil society focused workshop was the most recent gathering at the EC in the series of 5 workshops organised to identify the most efficient ways to promote better disclosure of ESG information. Eurosif presented its investor views with the other participants. The fourth meeting will focus on the trade union perspective, to be held on January 27, 2010. A summary of the workshops will be presented in Spain during their EU Presidency on March 25/26, 2010. View Eurosif’s recommendations on our lobbying page.
Member Affiliates' News
ASSET4 is acquired by Thomson Reuters
On November 30, 2009 Thomson Reuters announced that it acquired the business of ASSET4 AG, a Swiss-based, leading provider of Environmental, Social Responsibility and Governance (ESG) information and tools for professional investors and corporate executives. This deal represents a step forward in the integration of ESG data into mainstream financial analysis and underscores Thomson Reuters commitment to meet the evolving needs of the global financial community. Read the complete press release
Bank Sarasin Releases sustainability Report on Solar Industry
After the setback caused by the global economic crisis, the solar energy business will rally again sharply as early as next year. This is confirmed by the latest sustainability report from Bank Sarasin, just published under the title “Solar industry 2009: the first green shoots of recovery”. Global growth in the photovoltaics (PV) market is forecast to reach 46% in 2010. This corresponds to newly installed PV capacity of 8.5 GW. Annual growth rates for the period up to 2012 are between 45 and 50%. Non-European markets are expected to achieve higher than average growth: China above 130%, and India and the USA both in the region of 100% p.a. Contact gabriela.pace@sarasin.ch
Dexia AM becomes a signatory to the “Copenhagen Communiqué on Climate Change” & to the “Investor Statement on the Urgent Need for a Global Agreement on Climate Change”
Dexia AM pays a lot of attention to climate change and acknowledges its role in investment decisions by integrating it into sustainability analysis. Therefore, we have become a signatory to two major initiatives in this sphere. The first is overseen by the UK-based Prince of Wales’s Corporate Leaders Group in Climate Change which brings together business leaders from major UK, EU and international companies who believe new and longer-term policies for tackling climate change should be developed. It is the definitive progressive statement from the international business community ahead of the UN climate change conference in Copenhagen. It has already secured the support of over 700 companies. The second is a strong call from institutional investors to install a global agreement that will drive the financial flows necessary to address climate change. The statement is supported by 181 investment institutions, which collectively represent assets of $13 trillion. Read more
EIRIS Publishes “Taking stock: how leading stock exchanges are addressing ESG issues and the role they can play in enhancing ESG disclosure”
This includes an analysis of how well stock exchanges manage ESG issues and also makes the following recommendations to stock exchanges: - Incorporate ESG disclosure requirements into listing rules and corporate governance standards; - Implement disclosure requirements on a ‘comply or explain’ basis; - Support the requirement for a resolution on a CSR or sustainability report; - Explore measures to encourage best practice amongst companies e.g. through sustainable indices. Read full report
Ethix SRI Advisors, along with SIX Telekurs, announces launch of sustainability indices for the Nordic region under the name of SIX STAR
Overall, the 260 most actively traded companies in Denmark, Finland, Norway and Sweden have been analysed according to environmental, social and governance criteria whereby the 25 highest ranked in each country and across the Nordic countries are included in SIX STAR. SIX STAR is a family of sustainability indices with low investment costs suitable for investment products and as a benchmark. SIX STAR consists of a Nordic index as well as of four country indices. http://www.ethix.se
Ethos Foundation on Climate Change: Swiss Listed Companies Can Do Much More
The Ethos Foundation and Pictet Asset Management published the results of the third survey on the climate strategies of Swiss listed companies (Carbon Disclosure Project). Only 56% of the companies approached agreed to provide investors with the relevant data – a relatively modest participation rate, in line, however, with that of the previous year (57%). Moreover, 37% of responding companies refused to have the information they gave made public. Overall, companies were more inclined to communicate their direct CO2 emissions (72% against 64% in 2008). In contrast, the number of companies which calculate and disclose their indirect emissions (relating to the use of their products and services) remains low. Read more
FEE Releases Discussion Paper on Auditor’s Role in Providing Assurance on Corporate Governance Statements
Based on a survey of its Member Bodies about corporate governance requirements and practices, FEE concluded that, despite the range of legal systems, institutional frameworks and traditions, there is considerable convergence across Europe in the individual issues addressed in national corporate governance codes. They also found that the involvement of a qualified independent auditor can increase the degree of confidence of users of corporate governance information. Read more
Forética Receives Certificate for its CSR Management System
Forética has received the Management Ethics and Social Responsibility certificate by the SGE 21 standard, which establishes the requirements that need to be met by an organisation that integrates social responsibility into their strategy and management. The certification body SGS has independently verified that the Forética management system is consistent with the requirements, and that they have established procedures to maintain control and monitoring of possible contingencies relating to social responsibility and to achieve continuous improvements in these aspects. Some of the requirements are, for example, to define an ethical management and CSR policy, to establish a code of conduct outlining Forética’s values and its commitments to its stakeholders, and to establish an anticorruption policy and an ethics committee. Read more
GES Investor Outreach Pays Off
GES Investment Services has, together with its clients Ilmarinen, KLP and Folksam made important progress in its active engagement with Wesfarmers. In July 2009, a group of investors met with Wesfarmers and its subsidiary CSBP to discuss the sourcing of phosphate from occupied Western Sahara. The trade with phosphates from occupied Western Sahara is a violation against international law, since it funds Morocco’s occupation of the territory and currently takes place in disregard of the wishes and needs of the people of Western Sahara. CSBP has since the meeting in July announced the decision to invest in new technology, which will enable the company to use phosphate rock from sources other than occupied Western Sahara and thus reduce the company’s reliance on phosphate rock from the occupied area. The company estimates that the development of the new technology will take approximately two years, starting before the end of 2009. Read more
Henderson SRI wins awards for its Industries of the Future strategy
The Henderson Horizon Industries of the Fund has been awarded the Novethic SRI label, which is awarded to funds which fully integrate ESG screening and provide exhaustive information on their extra-financial characteristics and portfolio holdings. It also won a specific ‘ESG indicators’ award. Read more about the label. The SRI team has also recently attained a ‘highly recommended’ award under the ‘best climate change fund’ category for its Industries of the Future fund, at the Climate Change Awards 2009 presented at the House of Commons in London. The awards are in their second year and are promoted by Incisive Media and Holden & Partners. Read more
INrate and Centre Info: Sustainability Breakfast “Emerging Markets” & upcoming merger
The Sustainability Breakfast of INrate and Centre Info held in Geneva on October 27, 2009, was a great success. Around 40 asset manager and investor professionals gathered to listen and discuss the theme "Emerging Markets: an opportunity for investors". During the latest research cycle, Centre Info and INrate analyzed 742 stock-quoted companies based in 25 emerging market countries on more than 150 ESG metrics. Results show that despite the existing gap in sustainability integration between emerging market companies and advanced economies, sustainable investment in emerging markets is not only possible but also offers clearly identifiable opportunities. Another topic of the Sustainability Breakfast was the merger between INrate and Centre Info. The merger will bring under one roof 25 years of experience and allow faster time-to-market of next generation ESG analysis. Read more
Insight Investment and other major investors publish climate change research paper
Henderson Global Investors, Railpen and the USS - with specialist input from the consultant Acclimatise - have published the results of a two year research project into the investment implications of climate change adaptation. The final report, ‘Managing the Unavoidable: investment implications of a changing climate” together with four sector specific reports (for the Electric Utilities, Water Utilities, Real estate and Oil and Gas), identifies key risks and opportunities for these sectors, reviews current approaches to managing these risks and opportunities and presents a framework for investors seeking to build adaptation into their investment analysis and engagement activities. Access reports. For more information, contact Rory Sullivan at Insight or Seb Beloe at Henderson
Living Planet Fund extends its SRI product range
The good results and the success showed by the first compartment of WWF International's investment fund leads to the launch of two new sub-funds before year end: The Living Planet Fund – Bonds, a fixed income SRI fund investing in sovereign and corporate bonds enlarges the investment choice since November. This fund has an investment horizon of 6 to 8 years and manly invests (at least 60% of its portfolio) in Euro zone bonds. The Living Planet Fund – Energy, is a thematic equity fund with a long term investment strategy. It constitutes its portfolio by selecting companies belonging to value chain of the energy sector: manufacturers, distributors or best practice consumers. To spread the risk inherent to a thematic approach, the fund invests in different technologies: mainly large cap companies active in renewable energies such as solar energy, geothermal, water, biomass and wind power. http://www.livingplanetfund.com/
Mercer publishes “Shedding Light on Responsible Investment: Approaches, Returns and Impacts”
Academic research continues to support the hypothesis that specific environmental, social and corporate governance (ESG) factors can make a positive contribution to investment performance. This report summarises and comments on sixteen academic studies—ten of which show a positive relationship between ESG factors and financial performance. Read more
oekom climate risks handbook: analysis of climate risks in 35 sectors
The direct physical impacts of climate change and the indirect consequences for climate policy and the markets are of varying relevance to companies. Many sectors find themselves exposed to risks. The early and full recognition of the various risks forms the basis of proactive climate risk management. This is true both for manufacturing companies and service providers as well as for companies in the financial sector, which is linked through financing and insurance to all other sectors and is thus affected by their climate-related risks. In cooperation with HypoVereinsbank, oekom research has developed a climate risks handbook. oekom research describes and evaluates clearly and concisely the climate risks specific to each sector based on six categories of risk. The publication also provides important background information on effective climate risk management, on the key concepts of international climate policy and on the major anticipated impacts of climate change. Contact: Rolf D. Häßler
Oxfam’s third ‘Better Returns in a Better World’ workshop hosted by Aviva Investors in London
This third meeting of the joint initiative between Oxfam and the investment industry focused on the issue of decent work in global supply chains. The objective of the workshop was to examine whether and how employee wages can be factored into investment analysis and the implications of such analysis for efforts to encourage companies to ensure that a living wage is paid throughout their supply chains. The discussion was based on one of the first attempts by investment researchers to derive information on wages paid in the supply chain from information that is known or can be derived about product sales, retailer and intermediary margins, and input costs. Read more
RiskMetrics Group announced on 3rd November that it had acquired KLD Research & Analytics, Inc.
The combined firms will deliver increased coverage, more robust data, expert insights, and user-friendly tools to enable more investors to uncover the ESG risks and opportunities of thousands of companies worldwide. For COP15, the UN Climate Change Conference in Copenhagen December 7 – 18, RiskMetrics has launched a Climate Change Resource Center. An essential collection of need-to-know climate change information for institutional investors, sharing a wealth of information on climate change risks and opportunities. Read more on the acquisition of KLD Research & Analytics, Inc.
SAM named "Best Asset Manager Investing in ESG" second time in a row
On November 12, SAM received the “ESG Leaders Award” in the “Best Asset Manager Investing in ESG” category for the second time in a row at the TBLI Conference in Amsterdam, which was organised by Investment and Pensions Europe and the Triple Bottom Line Investing Group. This award underscores SAM’s strong market position as one of the leading asset managers for sustainability investments. Read more
Sustainalytics Expands Options for Responsible Investors in U.S. Market
Sustainalytics announced it is expanding into the United States to provide responsible investors with high quality global environmental, social and governance (ESG) research rooted in regional expertise. Leading the firm’s U.S. presence from the new office in Boston, Massachusetts is Darragh Gallant, who joins Jantzi-Sustainalytics, the North American division, as the Director of U.S. Operations. Read more
Threadneedle publishes quarterly ESG report
The report is part of Threadneedle’s development to become more transparent around their activities within both SRI and Corporate Governance areas, reflecting their overall commitment to improve communications with stakeholders and raise standards around disclosure and transparency of activities in the field. Highlights from the report include their strategy, recent engagements, proxy voting and other news and updates. Read an issue
Trucost Notes Power Utilities Struggle To Measure Carbon
Electricity generators are finding it difficult to account for greenhouse gas (GHG) emissions accurately. This means that investors could be using incorrect publicly disclosed carbon data to understand exposure to carbon costs under the EU Emission Trading Scheme (EU ETS). Trucost spotted the problem in the 2009 carbon disclosure of one of Europe’s largest power generators, RWE AG, which paid over €1 billion in carbon costs under the EU ETS in 2008. RWE Group incorrectly reported 70 million tonnes of GHG emissions to the Carbon Disclosure Project. RWE did not account for these emissions from electricity that they purchase for resale to end-users under Scope 3 of the Greenhouse Gas (GHG) Protocol, as recommended by the international accounting standard. Scope 3 emissions are indirect from sources not owned or controlled by the company. Instead, RWE, like many power companies, reported these emissions under Scope 2. Under the GHG Protocol, companies should only report indirect emissions from electricity purchased for their own consumption under Scope 2. www.trucost.com
Vigeo presents the 9th review of “Green, Social and Ethical Funds in Europe”
Vigeo contributed to the National Ethical Investment Week by presenting in London the “Green, Social and Ethical Funds in Europe” 2009 review. The study, carried out with Morningstar, shows that green, social and ethical funds in Europe have grown considerably in number and size over the past year, in spite of the fall-out from the financial crisis. If you wish to receive an electronic copy of the study, please contact antonio.celeste@vigeo.com.
WestLB publishes new report: “The big leap – Approaching the ESG challenges of tourism”
Climate change and tourism? So far, this issue has not played a major role – as far as investors are concerned. We are sure that this will change – and not merely due to the inclusion of aircraft into the European Emissions Trading System from 2012. The new WestLB report concludes that the full implications of climate change have yet to be completely understood by the tourism industry – despite all its efforts on this front. The no.1 challenge for the sector is unquestionably climate change – and this topic clearly has the potential to become an important catalyst to a more sustainable tourism industry. However, there are also other material ESG issues along the sector’s value creation chain that should not be forgotten. Surveys confirm that customers’ preferences are shifting towards sustainability, which are expected to move from a niche to a mainstream issue in the coming years. Tour operators that position themselves accordingly might gain a crucial advantage for the future. The WestLB report assesses how the big three tour operators TUI Travel, Thomas Cook and Kuoni, are progressing on sustainability. Contact: Dr. Hendrik Garz, Claudia Volk
SIF News
The French SIF is launching a blog on SRI
This blog will be open to many contributors and moderated by the FIR. The idea is to offer a platform of dialogue to the French speaking SRI community. Short contribution should encourage debate and interaction: www.blog-isr.com
Reminder: Finance and Sustainability European Research Award In 2009, 28 candidates are representing universities in Belgium, Bosnia and Herzegovina, Denmark, France, Spain, Switzerland, the UK and the USA. The Award Ceremony will take place January 18, 2010 – Allianz, 87 rue de Richelieu 75009 Paris. Eurosif and PRI are supporters of the Award
http://www.frenchsif.org
National Ethical Investment Week 2009
UKSIF would like to share a few highlights from National Ethical Investment Week 2009, which ran from 8-14 November:
- Parliamentary receptions in London and Edinburgh, with keynote speeches from Rt Hon Stephen Timms MP, Financial Secretary to the Treasury speaking at Westminster, and John Swinney MSP, Cabinet Secretary for Finance and Sustainable Growth, speaking at Holyrood
- Wide media coverage included opinion pieces by Penny Shepherd in The Times and Money Marketing, as well as personal finance stories in the Sunday Mail, the Sunday Times, The Independent and the Guardian
- 63 organisations supported National Ethical Investment Week, three times as many as last year
- UKSIF members and NEIW supporters organised more than 30 events in 14 towns and cities across the UK.
Thanks to all UKSIF members and sponsors Aviva Investors, CCLA Investment Management, The Co-operative Financial Services and Henderson New Star for helping to make the week a success. http://www.neiw.org
Social Investment Forum: Nearly All US Investment Consultants Surveyed Agree Responsible/ESG Investing is Here to Stay
U.S. investment consultants believe that the growing interest of their clients in environmental, social and governance (ESG)/responsible investing issues is not going to be a short-lived phenomenon: Nearly nine out of 10 (88 percent) believe that client interest in ESG will continue to grow over the next three years, and none believe it will decrease, according to a new survey conducted by the Social Investment Forum and Pensions & Investments. Read full report
SRI Initiatives
Investor Statement regarding Conflict Minerals from the Democratic Republic of the Congo
For over two decades, faith-based institutional investors, socially responsible investors and others in the investment community have addressed some of the most egregious human rights violations in the developing world. Working in tandem with constituents on the ground, we have witnessed the consequences of civil war, poor governance and extreme poverty. Sadly, perhaps no situation has been more severe than the civil war that continues to plague the Democratic Republic of the Congo (DRC). The SRI and faith-based investment community has drafted an Investor Statement condemning the global trade of conflict minerals originating in the Democratic Republic of the Congo. Over 50 investors have already added their signature to this statement, which will be sent to many of the world’s largest electronics companies, as well as other non-electronics companies that source significant amounts of coltan, tantalum and tungsten. The final date to add signatures is December 15 2009, and a press release highlighting this issue and the investor statement will be released on December 17 2009. To know more about this initiative and add your signature, please contact Dan Fibiger.
FairPensions calling on investors to pressure BP and RDS to report on tar sands issues
FairPensions is currently co-ordinating the process of filing AGM resolutions at BP and at Royal Dutch Shell calling on the boards of the companies to report to shareholders on the management of the varied risks associated with extraction of oil from tar sands. The deadline for filing with Royal Dutch Shell is December 31st 2009, and with BP it is January 21st 2010. If individual or institutional shareholders would like to know more or would like to sign onto the resolutions please contact FairPensions’ Director of Investor Engagement, Louise Rouse.
Ethical Money website launched
www.YourEthicalMoney.org is the UK's first consumer website dedicated to green and ethical finance. EIRIS' new website aims to empower consumers to make green and ethical product choices that will help build a more sustainable financial future. It provides free, independent and unbiased information on all aspects of ethical finance.
Events
United Nations Framework Convention on Climate Change
December 7 - 18 2009, Copenhagen, Denmark
http://en.cop15.dk
Finance and Sustainability European Research Award
January 18, 2010, Paris, France
www.frenchsif.org
ALFI SRI Conference, supported by Eurosif
February 9, 2010, Luxembourg
www.alfi.lu
Clear Profit '9/10
February 25, 2010, London, UK
www.clear-profit.com
The Third Annual Sustainability Summit: After Copenhagen: How can business face the climate change challenge?
February 25, 2010, Raddison Blu Portman Hotel, London, UK
www.thesustainabilitysummit.com
CleanEquity Monaco 2010
March 4-5, 2010, Monaco
http://www.cleanequitymonaco.com/
Financial Times: Investing in a Sustainable Future Conference
March 24, 2010 - The Hudson Theatre, New York City
http://www.ftconferences.com/csr2010
Biennale Européenne de la Finance Responsable et Durable
April 8 – 10, 2010, Montpellier, France
http://www.befrd.org
One Planet One Leader: Spring 2010
Workshop I – Business Dependencies, March 3-5, 2009 Workshop II – Business Transformation, April 14-16, 2009
Workshop III – Business Change, May 19-21, 2009
The closing date for Spring applications is January 31st 2010.
SAVE 10% by applying before 30 November 2009. www.panda.org/business/training.
You can contact Carolina Moeller on +41 22 364 9035 or Melissa Whybrow on +44 1444 811 273 or email opleaders@wwfint.org
Jobs
Trucost, Internship, London, UK
Norges Bank Investment Management, Senior Analyst, Oslo, Norway
EIRIS, Client Relationship Manager, Paris, France
Sustainable Capital Ltd, Sustainable Investment Analyst, Cape Town, South Africa
