Member Affiliates' News
ASSET4 partners with NYSE Euronext to Provide Corporate Transparency Tool to Listed Issuers
NYSE Euronext will provide the ASSET4 assetmasterExecutive™ solution to a number of NYSE-listed companies, enabling them to manage risk, enhance corporate governance practices and increase accountability. This follows a pilot program during which NYSE Euronext-listed issuers successfully incorporated the ASSET4 solution into their corporate responsibility evaluation processes. www.asset4.com
Bank Sarasin’s answer to the financial crisis
The bright side of the financial crisis: In its latest analysis Bank Sarasin is able to answer the question why an investor in corporate bonds should take environmental and social issues into account. The bank could clearly show that sustainable businesses are much less affected by the negative impacts of the financial crisis than companies which do not operate sustainably, and whose corporate bonds have therefore suffered the heaviest price falls. The evaluation of the credit risks for all corporate bond issuers within the banks sustainability research universe (measured as five year credit default swaps) shows that in most sectors of the non-sustainable companies have experienced a significantly higher cost increase in insuring their default risk compared to their sustainable peer group. The difference has increased from a few basis points during the month of February 2007 to average values exceeding 100 basis points on occasion. www.sarasin.ch/sustainability
BankInvest and Leuphana University Lüneburg produce SRI study in German
BankInvest and its academic partner Leuphana University Lüneburg have completed work on the study 'Socially Responsible Investments - Motive und Trends aus Sicht institutioneller Investoren in Deutschland, Österreich und der Schweiz (Socially Responsible Investments - Trends and Motifs of Institutional Investors in ASG Markets)'. An English version of this study should be available soon. Download German study here
BlueOrchard’s microfinance investment vehicles pick-up well in first quarter of 2009
The total assets under management with BlueOrchard, the world’s leading commercial microfinance investment manager, rose to USD 916 million at 31 March 2009 from USD 869 million at 31 December 2008, an increase of almost 5,5% in just one quarter. The main inflows came from institutional investors in Europe and North America - a recognition by investors of the stable performance to-date, and of the reliable management in the microfinance industry in times of crisis. BlueOrchard was consequently able to increase its lending activities with microfinance institutions and disbursed the equivalent of USD 17.2 million to 9 microfinance institutions in Azerbaijan, Kyrgyzstan, Peru, Kosovo, Tajikistan and Moldova in the course of April 2009. www.blueorchard.com
CAAM launches CAAM Funds Clean Planet investing in technologies with a smaller environmental footprint
Its investment universe consists of approximately 700 shares in the clean technologies sector. To be eligible, companies must generate at least 25% of sales in these sectors (if their capitalisation is below one billion euros (20% for the others). They are subjected to rigorous financial and sustainability analysis based on environmental, social and governance (ESG) criteria. The aim of the investment process is to construct a concentrated portfolio of some 60 shares in companies best placed to understand their own ESG risks and seize development opportunities related to sustainable development strategies. CAAM Funds Clean Planet is managed through CAAM’s team of seven global theme fund managers. It benefits from the combined fundamental, quantitative, and ESG analysis capabilities of six sustainability analysts from IDEAM. Read press release
Carbon Disclosure Project report finds Electric Utilities require energy revolution to reduce dependence on fossil fuels
CDP recently released a research report looking into how 110 of the world’s largest publicly quoted electric utilities companies currently measure and manage greenhouse gas emissions. Although many firms understand climate change is a business issue, only a small number of utilities are setting and disclosing absolute targets for reducing greenhouse gas emissions and just under half disclosed electricity generation capacity and production figures by fuel type. Governments are increasingly turning to concepts such as cap and trade and tighter regulations on carbon emissions from electric utilities. Utilities that don’t measure, let alone reduce, emissions expose themselves to possible fines and higher costs from having to purchase carbon offsets when regulation increases. See the CDP Electric Utilities report written by RiskMetrics and sponsored by CalSTRS.
DeAM launches major NYC climate-change billboard, and accompanying education campaign
Deutsche Asset Management (DeAM), headed by Kevin Parker, has erected a nearly 70-foot (roughly 21-meter) billboard in the heart of midtown Manhattan, New York. The current "teaser" display at 33rd Street and 7th Avenue—outside Madison Square Garden and Penn Station—is the first step in the full-blown launch of a groundbreaking climate-change awareness and education project. The initiative is sponsored by DeAM’s DB Climate Change Advisors unit. The idea that information catalyzes action underpins the billboard's creation. When it comes to climate change, everyone needs to Know the Number. On June 18, 2009, you will, too. www.dbadvisors.com
Domini Helps Lead Global Coalition Managing $372 Billion in Endorsing the Employee Free Choice Act
The Employee Free Choice Act (EFCA), currently pending in both houses of Congress, is considered the most significant piece of U.S. labour law reform in a generation. Human Rights Watch has called it “a human rights imperative,” saying it addresses many inadequacies of U.S. law that have permitted a range of anti-union tactics. The Act faces strong opposition from the U.S. business community. On May 11, Domini joined an international coalition of major institutional investors in endorsing the Act. The group, all signatories to the Principles for Responsible Investment, includes institutions from the U.S., Canada, Australia, and several European countries managing $372 billion. Domini helped to draft the letter to Congress formally endorsing the Act, and assisted in the overall coordination of the effort.
EIRIS research finds Financial institutions fail to manage their environmental, social and governance risks
Latest research from EIRIS finds only a quarter of companies are adequately managing their environmental, social and governance (ESG) risks. At risk? - How companies manage ESG issues at board level focuses on 2,200 companies listed on the FTSE All-Word Developed Index to track their progress on managing non-financial ESG risk issues over a three year period (2005-2008). The report identifies financial institutions as the worst performers: in 2008 almost a quarter of financial institutions failed to disclose any evidence of ESG risk management - which is at least twice that of any other sector. Banks, asset managers and insurers show the weakest performance in board practice with barely a sixth of companies making it into a “good” or “advanced” category.
Ethos “Say on Pay” Campaign Garners Success
Ethos and eight Swiss public pension funds successfully submitted “Say on Pay” shareholder resolutions to the 2009 general meetings of the five largest Swiss listed companies. Four of these companies - ABB, Credit Suisse, Nestlé and UBS - accepted to submit the executive remuneration to a shareholder vote, allowing Ethos to withdraw the resolution. Only Novartis opposed the Ethos proposal. 31% of the votes however supported the resolution at the Novartis general meeting sending a strong signal to the Board of Directors. The shareholders of ABB, Credit Suisse, Nestlé and UBS were asked to vote on the remuneration report/system. Ethos considers that the transparency and structure of the executive remuneration does not meet international best practice requirements. Between 8 and 14% of the investors followed Ethos and refused to approve the remuneration report/system. A signal well received by several Boards that promised to improve their remuneration systems. More information
Foretica launches CSR Europe’s Toolbox in Spain
Foretica launched CSR Europe’s Toolbox in Madrid on May 19th. The event included an official opening launch and five breakout sessions, where participants could get a taste of the different tools and understand how they, as companies, can use these tools to tackle socio-economic and environmental challenges. The event was a great opportunity for participants to understand CSR management tools that have been developed across Europe through the work of the CSR Laboratories facilitated by CSR Europe and its national partners. More information
Groupama AM officially launches a new SRI Bond fund
On April 2nd, Groupama AM launched “Groupama Credit Euro ISR” to complete its SRI products range offering and reinforce its SRI brand. Groupama Credit Euro ISR is designed for investors wishing to add a sustainable development dimension to their investment. Since 2003, the in-house SRI research team worked with the financial and credit analysts to undertake the ESG dimension within the fundamental and credit analysis. Based on risk and opportunity considerations, a security scorecard takes ESG performance criteria into account with adjusted weighting per ESG pillar on a sector basis. The SRI scoring of the issuers was entirely adapted to the credit analysis in order to apply an innovative system of bonus/malus loaded premium (bonus of risk) to each issue. This bonus/malus loaded premium depends on the SRI scoring quality and the duration of the issue. A bonus is applied to the most virtuous issues while a malus is allocated to the least responsible issues. www.groupama-am.fr
Henderson launches an SRI blog
Henderson Global Investors has launched an SRI blog. Seb Beloe, Head of SRI Research says: “The aim of the blog is to create a forum where our investors and stakeholders can access out latest views regarding SRI.” Among the first set of posts are views from team members on: how sustainable the UK’s latest budget is; whether it’s time for nuclear to come in from the cold; how smart the proposed smart grid stimulus package is in the USA, as well as how well SRI is performance in the current economic turmoil. www.henderson.com/sriblog
INrate's commitment to the UNPRI
INrate signed the Principles for Responsible Investments of the United Nations UNPRI. UNPRI is a voluntary investors’ initiative that was launched in partnership with the UNEP Financial Initiative and the UN Global Compact. Their goal is to comply with the ESG criteria (environment, social and corporate governance criteria) within the financial sector. As the largest independent rating agency in Switzerland, INrate is pleased to have signed the PRI. In the category "Professional Service Partners", INrate thus acknowledges the importance of integrating ESG criteria into investment decision-making and is committed to supporting and distributing the UNPRI. INrate’s contribution to each of the six principles is described here.
KLD Research & Analytics opens first overseas office in London
The London office will support KLD’s ESG services in the UK and Europe. The office is headed up by Peter de Graaf, a former MD with FTSE and Trucost. www.kld.com
Limestone’s Eastern Europe Opportunities fund and New Europe SRI fund survive the storm
The worst seems to be over. The fear of collapse and bankruptcy in Eastern Europe is effectively mitigated. The IMF’s new FCL facility and the trebling of IMF funds to USD 750bn in connection with the G20 meeting in London are a significant boost to liquidity in emerging markets at a time when private capital flows to these markets have dried up. We believe that the level of redemptions during this current financial crisis exceeds what an expectation of weaker fundamentals would warrant and does not reflect efficient capital allocation. Current valuations offer an attractive entry point. We believe the New Europe equities are poised to double in the next 3-5 years. www.limestonefunds.eu
oekom research publishes position paper on GMOs
In its “Position Papers” series oekom research has recently published a study on agricultural genetic engineering. To order a copy free of charge contact info@oekom-research.com.
SAM and Gatehouse Bank Globally Introduce First Shariah-compliant, Water-focused Investment Strategy
SAM, one of the world’s leading asset managers in the field of sustainability investments, in conjunction with Gatehouse Bank, one of the leading Islamic banks, are offering on a global basis the first ever Shariah-compliant investment strategy in the area of water. This investment strategy offers investors with a long-term investment horizon the opportunity to participate in the worldwide growth of forward-looking, sustainability-oriented companies involved in the entire value chain of water, while adhering to Shariah norms. Read press release
Trucost carbon data underpins S&P U.S. Carbon Efficient Index
Standard & Poor's has launched the first in a series of global low carbon indices to meet the growing investor demands for environmentally focused indices. The S&P U.S. Carbon Efficient Index will measure the performance of large cap U.S. companies with relatively low carbon emissions, while seeking to closely track the return of the S&P 500. To reflect its carbon efficiency, the Index is comprised of constituents of the S&P 500 that have a relatively low Carbon Footprint, as calculated by Trucost Plc. Trucost quantifies the environmental impact of over 4,500 companies across different sectors and geographies. Trucost calculates the carbon intensity of companies in the S&P U.S. Carbon Efficient Index by researching and standardising publicly disclosed information and engaging directly with companies to verify its calculations on an annual basis. www.trucost.com
UBS Global Asset Management joins PRI
UBS Global Asset Management is pleased to announce that it has become a signatory to the Principles for Responsible Investment (PRI), a global investor initiative that is designed to provide a framework for better integration of environment, social and governance (ESG) issues into mainstream investment practice. We recognize the impact the Principles are having on the dynamics of the industry and the increasing focus of our clients and their consultants on this important aspect of their investments. As part of our commitment to the Principles, UBS Global Asset Management runs a dedicated range of SRI funds. More information
WestLB publishes "More headwinds through CO2 costs - Assessing the impact of the European Emission Trading Scheme on airlines"
The airline industry will be included in the European Emission Trading Scheme (EU ETS) by 2012. Allowance costs could have a significant impact on airlines’ operating costs; the financial impact of this will depend on their ability to shift costs. Within the range of airline business models, we believe Lufthansa and other legacy carriers will be affected to only a minor extent, but low-cost carriers (LCCs) may be hit the most. The report includes background information on aviation and climate change, the European Emissions Trading Scheme, the impact of the ETS on aviation, our valuation of Lufthansa and a comprehensive ESG portrait of Lufthansa. For more information contact Claudia Volk
