SRI News from Eurosif's Member Affiliates
February / March 2009
>> New Member Affiliates
BankInvest joins Eurosif
The BankInvest Group is one of the leading independent asset managers in the Nordic region with head office based in Copenhagen. BankInvest also has a Luxembourg branch from which sale to European clients takes place. The group offers investment expertise in several areas. Among these are the investments in global equities, where we have an unrivalled track record since 1989. BankInvest also invests in emerging markets equities and debts. The rising star is their ethical overlay, which they apply to funds fulfilling the conditions of Socially Responsible Investments (SRI). BankInvest launched the first SRI fund in 2005 and has continuously developed the range of SRI products since. We now offer SRI screened portfolios of both bonds and equity and covers developed markets as well as emerging markets. BankInvest signed UN PRI in February 2008 and is dedicated to further development within the field of responsible investments. www.bankinvest.com
OXFAM
Oxfam GB is an independent organisation, registered as a charity in the United Kingdom and affiliated to Oxfam International. With partners, volunteers, supporters and staff of many nationalities, Oxfam works on finding lasting solutions to poverty and suffering around the world. To achieve the greatest impact, Oxfam works on three inter-linked fronts: Saving lives by responding swiftly to provide aid, support and protection during emergencies; Developing programmes and solutions that empower people to work their way out of poverty; Campaigning and advocacy to achieve lasting change. www.oxfam.org.uk
>> SRI News from Member Affiliates
BankInvest Executes Study on SRI
LEUPHANA University Lueneburg (Germany) and the German branch of Eurosif affiliate member BankInvest (Denmark) are currently co-operating in doing a study on drivers and trend assumptions of institutional investors regarding Socially Resonsible Investments (SRI) in Germany, Switzerland and Austria. The results of the study will be presented at the Sustainability Congress at Bonn (May 5th and 6th, 2009), which takes place at World Conference Center (former Bundeshaus) in Bonn. More than 500 decision makers and opinion leaders will meet and exchange views around the topic of SRI as a driver for innovation and for the capital market in general. An international media conference will be held as well the day prior to the Sustainability Congress. For further information, please contact: Joachim H. Boettcher, MBA (OUBS) - jhb@bankinvest.com
Responsible investing in bonds – ASSET4 Sovereign Supra
Investors are looking for ways to invest responsibly in sovereign bonds. This is why ASSET4 has introduced its Sovereign Supra solution supplying the most important environmental, social, governance information on sovereign entities. To provide an example of the data, ASSET 4 created a graph showing the top 10 countries in terms of Environmental, Social and Strategic Governance performance, which can be viewed here. This system looks at over 150 KPIs when monitoring these issues including emissions, biodiversity, education, health, corruption and innovation. At this moment the Sovereign Supra solution covers over 250 entities (including 67 countries, 31 local authorities, 91 companies, 35 state-owned companies and 30 supranational entities). For more information, please contact sales@asset4.com.
BlueOrchard selected to co-manage Microfinance Enhancement Fund
On 5 February 2009, IFC, a World Bank member, and the German development bank KfW launched a USD 500 million investment fund to support the growth of microfinance institutions that need refinancing since funding became scarcer on the financial markets. The Microfinance Enhancement Fund (MEF) will be managed by BlueOrchard Finance SA and two other leading commercial microfinance asset managers. By funding well-established microfinance institutions, the MEF will provide access to financial services for millions of micro-entrepreneurs. The measure will ensure that microfinance continues to stimulate growth, create jobs and reduce poverty in emerging markets. The IFC and KfW are committed to invest initial amounts of USD 150 millions and USD 130 millions respectively, but the MEF aims at attracting other investors to reach USD 500 millions. More on www.blueorchard.com/jahia/Jahia/newsArchive
CAAM pursues its policy of dialogue with shareholders in the context of the UN Global Compact Investors’ Initiative
CAAM is one of 38 investors in the UN Global Compact Investors’ Initiative who in January sent a letter to 130 of the biggest firms that are signatories to the UN Global Compact. It congratulated some on having fulfilled their reporting obligations regarding the ten principles of the UN Global Compact while encouraging the others to produce the relevant report, entitled “Communication on Progress” as proof of their commitment. Air France, Starbucks and BASF all get good grades; not so GAP and LVMH. In so acting, the sponsors of this initiative seek to safeguard the credibility of the Global Compact which has been damaged by companies limiting their involvement to the mere expression of good intentions. CAAM is active in several of these international initiatives, the aim of which is on the one hand to induce companies to improve their practices and communication concerning corporate social responsibility and sustainable development, and on the other hand to press governments to take measures that encourage such improvement. The areas concerned are climate change and transparency in relations between companies in the oil and mining sectors and the countries in which they operate.
Carbon Disclosure Project issued its 2009 annual Information Request for climate change data & Ecodes first time participation this year
The Carbon Disclosure Project has issued its 2009 annual Information Request for climate change data to more than 3700 listed companies. The number of investors that signed this year’s annual request rose by almost 25 percent to a record 475, reflecting the rising importance of climate change within financial institutions. CDP has also released preliminary findings from an investor research report, analysed and compiled by Mercer, which will be available early March 2009 on the CDP website - www.cdproject.net. The research included responses from 80 of CDP’s signatory investors across the globe and revealed that three-quarters factor climate change information into their investment decisions and asset allocations. It also indicated that some institutions are willing to go beyond requesting disclosure on climate change, such as asking companies to reduce their greenhouse gas emissions. www.cdproject.net For the fist time in Spain, listed companies in IBEX35 were researched through the CDP6 questionnaire delivered for 2008. The past 12 February, Carbon Disclosure Project and Ecología y Desarrollo - a Eurosif’s member Affiliate - presented the first report fully integrated by information provided by Spanish companies - http://www.ecodes.org/pages/documentos/documento.asp?Id_Doc=137
cru -Africa Invest Malawi Ltd meets World Leaders
During the latest The World Economic Forum in Davos, Africa Invest Malawi Ltd and cru Investment Management plc Chairman, Jon Maguire spoke about his experience of investment-led business enterprise. At a select gathering of world leaders, senior government representatives and international business leaders, discussions centred around developing business strategies for sustainable food production. Kofi Annan, Chairman of the Board of the Alliance for a Green Revolution in Africa (AGRA), charged the group with finding solutions to the growing issue of hunger in the world today. MP Douglas Alexander, the Minister for the British Government's Department for International Development (DFID) highlighted the successful work of Africa Invest Malawi Ltd, and acknowledged its contributions and endeavours in alleviating hunger and poverty through agricultural investment. The Africa Transformational Agri Fund launches in March 2009, offering investors an opportunity to contribute to a solution for global food security, as well as earning an expected return on capital of 15–20% per annum. Further details are available by contacting Duncan Parker via email dparker@cruim.com - www.cruim.com
Dexia Asset Management enlarged its Country analytical framework
Recently, as a result of massive investor interest for SRI bond funds, Dexia Asset Management’s in-house sustainability research team has decided to enrich the Norms-based selection of public issuers with a Best-in-class Analysis. This new country analytical framework aims at selecting the countries that manage their human, natural and social assets in the most sustainable way. It hinges on the conviction that investing in their human capital while properly managing both natural resources and social capital enables countries to develop themselves in a sustainable way, finally resulting in stronger economic growth and wellbeing on the long term. Denmark is among the top scoring AAA rated countries as it scores well above average with regard to human capital. For example, the Danish 'flexicurity' model shows very positive results with regard to rates of youth unemployment, unemployment in general and long term unemployment that rank among the very lowest. More information on Dexia Asset Management’s product range, including SRI government bond funds, can be found here.
Domini Social Investments and Social Investment Forum Release Report on CSR Disclosure
Innovations in a number of countries are providing publicly traded companies with strong incentives to report on their social and environmental performance. The new report “Innovations in Social and Environmental Disclosure Outside the United States”, written by Domini Social Investments, presents case studies of five countries where governments and stock exchanges have taken the lead in social and environmental disclosure: Brazil, France, Malaysia, South Africa, and Sweden. It also details actions that have been taken in Australia, China, Denmark, Israel, the U.K., the city of Buenos Aires and elsewhere. Domini submitted the report to the SEC along with recommendations that the Commission consider mandating social and environmental disclosure. The report is available at www.domini.com
ECPI published report: “Sustainability Due Diligence To Enhance Hedge Fund Analysis: The Madoff Case”
The report explains how a sustainable approach to hedge fund analysis, such as the MARS® methodology (Manager Alpha and Risk Score) developed by ECPI, can be useful to prevent investing in opaque structures, like Madoff. Back in 2005 their lack of transparency - according to the proprietary HF/FoHF due diligence methodology MARS® - led ECPI to rate two Madoff Feeder –funds, Kingate Global Fund Ltd and Kingate Euro Fund Ltd as Not Eligible. Link Report: http://www.e-cpartners.com/news_zoom.asp?IdART=516
EIRIS celebrates the opening of its new French office with new business wins
Global responsible investment specialist EIRIS has been selected by the Fonds de Réserve pour les Retraites (FRR) – one of Europe’s biggest state pension funds – to provide extra-financial risk analysis services for its global equity portfolio. The FRR will use the EIRIS Convention Watch service and controversial weapons screening service to track and mitigate extra-financial risks that could impact on the fund’s reputation. Additionally, Natixis Asset Management will use EIRIS’ Country Sustainability Ratings tool to monitor the environmental, social and governance aspects contributing to the overall sustainability of countries. In the UK, Kleinwort Benson will use EIRIS research to develop a pool of listed FTSE350 companies which can be tailored to include only those companies making positive social contributions, for example companies which have strong human rights or environmental policies. To help better serve the French market EIRIS has opened a new office in Paris - contact nadia.laine@eiris.org, +33 1 48 03 92 24 for further details.
Ethos Calls for Vote on Swiss Say on Pay
Last autumn, Ethos and eight Swiss pension funds tabled a shareholder resolution requesting ABB, Credit Suisse, Nestlé, Novartis and UBS to submit their executive remuneration reports to an advisory vote by shareholders. Following dialogue with Ethos, Credit Suisse, Nestlé and UBS have accepted to submit their remuneration system or report to an advisory vote at their upcoming shareholder meetings. For these companies Ethos has withdrawn the resolution but will carefully analyse the remuneration reports or systems and elaborate voting recommendations. As Novartis and ABB have so far not agreed to submit their remuneration to a vote, the Say on Pay resolution is maintained for the shareholder meetings of these two companies. Ethos reminds non Swiss shareholders of the necessity to re-register shares to be able to vote at the four remaining shareholder meetings: UBS (15 April), Nestlé (23 April), Credit Suisse Group (24 April), ABB (5 May). More information: http://www.ethosfund.ch/e/ethos-foundation/ethos-say-on-pay.asp
Henderson SRI appoints Gwen Ruta to its Advisory Committee
The SRI team at Henderson Global Investors has announced a new member to its Advisory Committee. Gwen Ruta will join existing members, Paul Hohnen and Ram Gidoomal on the committee, which is an independent panel providing guidance and accountability to the team, primarily in terms of its research and engagement activities. Gwen Ruta is Vice-President, Corporate Partnerships at US charity Environmental Defense Fund (EDF), where she directs its programme working with companies to develop innovative, business-based solutions to environmental challenges. Read the press release here: http://www.henderson.com/content/sri/publications/sripressreleases/gwenrutaonadcom.pdf. The 2008 annual statement by the Advisory Committee is also now available on the SRI website.
MACIF Gestion announces a CSR conference-breakfast on 26th March, entitled “Sustainable development: the emergence of a new economic model?”
This event is aimed at presenting the results of a survey conducted on the sustainable development strategy within the 40 biggest French companies. For further information, please download the invitation.” http://macifgestion.fr/doc/doc-5_fr.pdf
oekom research’s latest country rating: potential for improvement in the US
The US is one of the largest bond issuers worldwide. Nonetheless, institutional investors often feel uneasy when they decide to invest in US bonds, especially if they wish to take sustainability criteria into account in the selection of their securities. If President Obama means what he said in his announcements, then US bonds look set to become increasingly attractive for sustainably-oriented investors. The list of recommendations on how a far better ranking could be achieved broadly coincides with Obama’s package of measures: closing the detention centre at Guantánamo Bay, abolishing torture, ratifying the Kyoto Protocol, expanding the use of renewable energy sources and investing in infrastructure. The US currently comes way down in 40th position, out of a total of 50 countries analysed. The top performers were Norway, Sweden, Finland and Denmark. oekom research’s country rating comprises 150 social and environmental indicators. For more information on the oekom Country Rating please compare www.oekom-research.com
Oikocredit increases investments in turmoil of credit crisis
In a time when the financial markets have been battered by the credit crisis, Oikocredit – one of the world’s largest private financier of the microfinance sector* - managed to increase its field investments by 32% to no less than €365 million. In microfinance alone Oikocredit invested €287 million in small, medium and large microfinance institutions. Meanwhile, the ratio of their microfinance projects at risk dropped to the lowest level in their history: 1.5% **. * MicroRate’s ‘2007 Microfinance Investment Vehicles Survey’ **Preliminary, not yet audited figures as per 31 December 2008)www.oikocredit.org
Sarasin Group starting business with institutional clients in Denmark, the Netherlands and Sweden
The Sarasin Group has started business with institutional clients in Denmark, the Netherlands and Sweden. In order to meet the high but nevertheless still increasing demand for sustainable and responsible investments, the businesses will be operated locally by staff of Bank Sarasin AG, of Frankfurt, Germany, the Sarasin Group's European hub office. The responsible persons are Thomas Huusom for Denmark, Johan Langerak for the Netherlands as well as Eric Gelfgren and Mats Eltoft for Sweden, Norway and Finland. www.sarasin.ch
Shareholder advocates equipped with Trucost carbon data
The Interfaith Center on Corporate Responsibility (ICCR), a coalition of nearly 300 faith-based institutional investors representing over $100 billion in invested capital, is using data from Trucost to help investors identify exposure to risks associated with companies that emit high levels of greenhouse gases. Trucost’s carbon data underpins independent “climate risk profiles” on more than 150 companies that are the subjects of 2009 shareholder resolutions filed by faith-based investors, public pension funds and other responsible investors in the US. The shareholder resolutions cover a wide range of issues, including climate change. The climate risk profiles use climate change indicators which take into account whether or not a company discloses greenhouse gas emissions from its operations, and the percentage of the company’s deviation in GHG emissions from the sector average compared to industry peers. Climate profiles of all 150 companies are available online at http://www.iccr.org/shareholder/trucost/index.php.
SNS Asset Management launched ‘Sense- Responsible Investing Magazine’
‘Sense’ is dedicated to innovative social investments: it reflects the growing interest from financial investors to select innovative products that fulfil their demand to combine a healthy financial return with a good social return. To read the magazine on line go to http://www.snsam.nl/index.asp?NID=7617 .
