September 2009 Eurosif Newsletter

Recent Eurosif speeches & events

European Proxy Season Wrap-Up 2009: A Season to Remember?
On September 9th, Eurosif addressed investors at the British Embassy in Paris in a high profile event organised by Manifest to answer the question “Cross Border Voting in Europe – Problems or Progress?” Other attendees included pension funds, asset managers, and diplomatic officials.

Taking ESG into Account 2009 -The Annual EFFAS Conference on Integration of Extra-Financials September 8-9, Frankfurt
Eurosif added to the current debate on how much standardisation for risk and ESG disclosure is necessary at the roundtable dedicated to “Disclosure of Risk, Corporate Governance and ESG”.

Social Responsibility, a model of sustainable management, September 14, 2009 - Menorca
Eurosif provided case studies and group workshops on the topic: CSR during the crisis, current state and trends at this Spanish event put together by member affiliate Forética.

Eurosif/CA Cheuvreux Banking report event, with UKSIF and hosted by CA Cheuvreux, September 17, 2009 – London, UK
Eurosif and CA Cheuvreux presented the results of the recent Banking sector note in London with participation from Dr. Alessandra Mongiardino, VP Global Risk Management specialist at Moody's Investors Service and Penny Shepherd MBE, Chief Executive of UKSIF.

Sustainability without Borders Seminar, September 24, 2009 - Amsterdam
Eurosif took part in this one day seminar with the Dutch Sustainable Investment Forum (VBDO) by discussing “What is the level of responsible investment of Dutch institutional investors compared to other (European) countries? Are there limits to responsible investment? And are there limits to irresponsible investments?”

Upcoming Eurosif speeches & events

Wealth Management & Family Office Summit 2009, October 7 - 8, 2009 – London, UK
Eurosif willl address the issues of sustainable investment at this wealth management conference.

16th Session of the UNECE Committee on Environmental Policy - October 20-23, 2009 - Geneva, Switzerland
Eurosif will contribute to this high-level Committee on Environmental Policy to address environmental priorities across 56 countries of the UNECE region.

Eurosif/oekom Biodiversity report event, with UKSIF, hosted by KBC Asset Management
October 22, 2009 (10.30am to 12.30pm followed by lunch), London, UK

Sustainable Stock Exchanges: How can exchanges address ESG issues in a way that fosters responsible investment and supports sustainable development?- November 2, 2009, New York
Eurosif has been asked to attend this invitation-only gathering to address the urgent need to promote better risk management, good governance and enhanced transparency to protect long-term returns.

"Protect, Respect, Remedy", November 10-11, 2009 – Stockholm, Sweden
Eurosif to speak 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, who will participate throughout the conference. It is organised in cooperation with the European Commission and the Swedish Ministry of Employment.
Read more

Event in association with RI - The Future of ESG Integration, November 11, 2009 – Amsterdam, NL
Eurosif to moderate a panel on the future of corporate ESG data/information in developed and emerging markets. Read more

New Member Affiliates

RiskMetrics joins Eurosif
RiskMetrics Group (RMG) was first established in 1989, when Sir Dennis Weatherstone, the new chairman of J.P. Morgan, asked for a daily report measuring and explaining the risks of his firm. Nearly four years later in 1992, J.P. Morgan launched the RiskMetrics methodology to the marketplace, making the substantive research and analysis that satisfied Sir Dennis Weatherstone's request freely available to all market participants. For nearly twenty years now, RiskMetrics Group has educated a global marketplace, giving financial institutions around the world the tools to make better and more informed investment decisions.
http://www.riskmetrics.com/

SEIU Capital Stewardship joins Eurosif
The Service Employees International Union (SEIU) is a leading voice in North America on responsible and sustainable investment. SEIU members participate in 48 public pension schemes and 19 private pension schemes with nearly $1 trillion in assets, representing over 16% of all U.S. pension assets.
SEIU has advocated greater shareholder rights, good corporate governance and transparency, alignment between executive compensation and shareholder interest, responsible banking and lending practices, regulatory oversight of hedge funds and private equity, and respect for internationally-recognized Conventions and Treaties in the investment process.
More information

SRI News from Member Affiliates

ASSET4 Expands Coverage, Adds New Global Compact Tool
The ASSET4 coverage universe for equities now includes the leading companies from the emerging markets, while their fixed income coverage now covers 100+ countries (foreign sovereign), 50+ local authorities, 200+ companies (private and state-owned) and 50+ supranational entities (80% of iBoxx). In addition, this month ASSET4 introduces their Global Compact Compliance and Monitoring Tool that provides investors an in-depth picture of a company‘s level of performance or exposure for each of the ten principles, which cover human rights, labour standards, the environment and anti-corruption.
Read more.

BlueOrchard significantly disburses loans to microfinance institutions in July/August 2009
In July and August, BlueOrchard Finance disbursed the equivalent of almost USD 39 million in 14 loans to microfinance institutions, of which three loans to new partner institutions, i.e. Shayata in India, MEMCC in Jordan and Al Majmoua in Lebanon. All loans were made from the Dexia Micro-Credit Fund.
www.blueorchard.com

Crédit Agricole Asset Management (CAAM) & French Development Agency (AFD) launch innovative fund to reconcile financial investment and development aid
Managed by IDEAM, CAAM AFD AVENIRS DURABLES is a diversified and prudent fund, applying the principles of Responsible Investment. 70% of its assets are invested in selected funds primarily money market and bonds, and to a lesser extent, equities. 30% of the fund is oriented towards development aid with approximately 20% of bonds issued by the AFD and maximum 10% in co-financed investments for projects in developing countries especially through the subscription of Proparco shares (unlisted), a subsidiary of the AFD.
www.caam.com

Carbon Disclosure Project launches 2009 Global 500 report
The 2009 CDP Global 500 report detailing the climate change actions of the world’s largest companies was released on September 21st. It includes information from 82% of the Global 500, the highest ever number of corporations disclosing their climate change data to CDP. This year CDP also launched its new performance scoring pilot methodology, which scores corporations actual performance in responding to and reducing their contribution to climate change and is intended to complement the Carbon Disclosure Leadership Index (CDLI). Allianz, Consolidated Edison, EMC, Reckitt Benckiser, Siemens along with BASF, Boeing and Cisco Systems were among the global corporations leading efforts to tackle climate change. 51% of the Global 500 companies report emission reduction targets, up from 41% in 2008, yet only 36% of reported carbon reduction targets stretch beyond 2012, pointing to the need for a global agreement in Copenhagen.
Read the report.

Centre Info & INrate’s Sustainability Breakfast - «Sustainable Investments in Emerging Markets: A Chance for Investors», 27 October 2009 in Geneva
Given the rising demand for sustainable investing in emerging markets, Centre Info has developed a specific rating approach for companies in these countries. During the Sustainability Breakfast held together with INrate, Philippe Spicher, CEO of Centre Info, will present this approach as well as the most important rating results and discuss the possibilities and limits of sustainability analysis and sustainable portfolios in emerging markets. Christoph Müller, Chairman of the Board of Directors of INrate, will go into the challenges of sustainable development in emerging markets. Furthermore, Claude Barras, Director of the Swiss Investment Fund for Emerging Markets (SIFEM) will in his presentation explain his experiences with emerging markets. SIFEM is responsible for managing the investment portfolio for developing and emerging markets of the Swiss State Secretariat for Economic Affairs (SECO).
More information

Dexia AM research: Sustainable labelling: there’s more than meets the eye
Sustainable products are not new. One of the first sustainable product initiatives dates back to the late 1980s in the Netherlands with the “Max Havelaar” fair-trade certification. In recent years, the number of sustainable products and associated labels across a wide range of consumer products has proliferated. But what do all these labels mean? And why have they suddenly become so popular? A research paper written in Dexia Asset Management’s in-house sustainability analysis team looks at how sustainable products and their associated labels are defined, looks into consumers’ confusion and identifies the trends that will shape this buoyant market. The retail sector’s response is examined, along with how the sustainable labelling is likely to evolve in the food retailing industry, in light of the current economic downturn.
https://www.dexia-am.com/funds/investment+processes/sustainable/default__ICRDLA_ALL_EN.htm

Domini Marks 15 Years of Shareholder Activism
Since 1994, Domini Social Investments has filed a total of 200 resolutions with 83 companies and engaged in numerous long-term dialogues with corporate management on a range of social, environmental, and governance issues. Together with a variety of committed people and organisations, Domini has worked on its shareholders’ behalf to alleviate poverty among coffee farmers, improve conditions for factory workers, and protect forests. Domini’s Social Impact Update for the second quarter of 2009 reviews highlights of its first 15 years of shareholder activism.
Read more

EIRIS named UK’s best ESG Research House
EIRIS has been awarded top honours in this year’s World Finance Awards. Created in 2007 by World Finance Magazine, the Awards are designed to identify industry leaders, individuals, teams and organisations that represent the benchmark of achievement and best practice in the financial world. This year, the awards highlighted Socially Responsible Investments (SRI) for the first time. The panel of independent awards adjudicators considered a range of criteria including adoption of the UNPRI principles, meeting the Environmental, Social and Governance (ESG) demand of institutional investors and quality of research. Other criteria included innovation, originality and quality of products, as well as proof of market development and excellence in client representation. EIRIS’ extra-financial research is based on a fully transparent and robust methodology and in 2008 EIRIS became the first ESG research house in the UK to be awarded the CSRR-QS 2.1 Quality Standard.
Contact mark.robertson@eiris.org

Ethos 2010 Shareholder Resolutions: “Say on Pay” and “Stop Chairman-CEO”
Ethos and eight Swiss pension funds have filed two shareholder resolutions aiming at improving corporate governance. The first resolution requests the introduction of an advisory vote of the remuneration report by the shareholder general meeting. This resolution was submitted to Holcim, Novartis, Swiss Re and Zurich Financial Services. The second resolution aims at preventing the combination of the positions of Chairman and CEO at Novartis.
Ethos also released its 2008 study on the executive remuneration of the largest Swiss listed companies. Despite a decrease of the remuneration in the majority of companies, in particular in the financial sector, the amounts paid still remain very high. Also, several companies are not in line with international best practice with regard to transparency and structure of executive remuneration.
http://www.ethosfund.ch/e/ethos-foundation/ethos-say-on-pay.asp

FEBEA member Etica Sgr maintains large share of Italian SRI fund subscriptions
Etica Sgr has achieved €300 million of AuM and 13,000 clients as of end of August 2009. Net inflows were particularly strong in the Money Market Fund (+35.4%) and the Bond Fund (+8.8%). Since the beginning of 2009 46% of all SRI fund subscriptions in Italy were with Etica SGR funds.
http://www.febea.org/febea_members.php

FTSE4Good September Review: Reshuffle for leading global responsible investment index series with 33 additions and 15 deletions
Globally 33 companies will be added while 15 companies will be removed from the leading responsible investment benchmark, now in its eighth year. The index series is designed to track the performance of companies meeting international corporate responsibility (CR) standards. Since the launch of the index series in 2001 over 250 companies have been deleted for failing to keep pace with the increasing stringency of the FTSE4Good environmental and social criteria. Despite raising the criteria bar most FTSE4Good reviews have seen more additions than deletions, which indicate a growing adoption of responsible business practices across global industry.
More information

Henderson SRI wins EIA Gold Award for SRI fund transparency
The SRI team at Henderson has again been recognised with a gold award from the Ethical Investment Association (EIA) for its retail fund transparency. The award is for the team’s full compliance with the disclosure requirements for the European SRI Transparency Guidelines. Henderson’s 2008 Statement of Commitment for the Guidelines is now available on the website.

Insight Investment & Ethix SRI Advisors evaluate Scandinavian companies
This publication takes a closer look at how Scandinavian companies are managing climate change risks and opportunities. The report argues that Nordic companies are lagging significantly behind their European peers in their management of these risks and opportunities, and in the integration of climate change related factors into their business strategies.
Read more and download ”Taking the Temperature: Nordic Region” report

KLD launches new research platform
KLD Research & Analytics, Inc. has introduced its new Global Socrates™ ESG research platform. The third generation of KLD’s proprietary Web-based client interface, Global Socrates provides a complete set of customizable ESG research, ratings and screening tools to investment professionals worldwide. Global Socrates profiles thousands of companies in the US, Europe and Asia. It provides investors with hard data, including performance indicators, ratings, and analysis of corporate environmental, social and governance (ESG) performance. This enables clients to objectively compare each firm to sector and global peers.
For more information please contact Peter de Graaf at pdegraaf@kld.com or + 44 20 7043 5177.

Mercer releases paper looking at fixed income and responsible investment
This is the fifth release in a series of white papers covering topical Responsible Investment issues. The paper provides an overview of progress achieved to date in applying RI policies across fixed income portfolios as well as observations on current practices and best practice approaches to the integration of ESG issues. Previous white papers in the series include "Carbon Risk and Carbon Trading: Investment Considerations" and "Cleantech Investment Issues - A Focus on Private Equity".
http://www.mercer.com/ri

oekom research publishes position paper on microfinance
The basic idea behind microfinance instruments is to enable those people who do not have access to conventional banks and insurance companies to obtain financial services. Microfinance is thus designed to help combat hunger and poverty, particularly in newly industrialising and developing countries. More recently, microfinance has gained in importance as an asset class which, due to its positive social impact, is of particular interest to sustainable investors. According to experts, there are currently more than 90 relevant microfinance investment vehicles, i.e. investment funds or structured products, which together account for a total volume of investments of just under six billion euros. oekom research has compiled the facts and arguments relating to micro-credits and micro-insurances in an eight-page position paper which describes how the issue affects the rating of banks and insurance companies.
To order a copy free of charge contact info@oekom-research.com.

SEIU & LAPFF sponsor PRI Clearinghouse webinar: Progress Report on the G4S-UNI Ethical Partnership Agreement: October 5th, 9:30 EST
This webinar will offer a unique progress report on the Partnership, including perspectives from management, labour and institutional investors. The progress report will provide examples of how the G4S and UNI Partnership is working in key markets such as India and Southern Africa.
Speakers will include: Jenni Myles, Director of Employee Engagement & HR at G4S, Christy Hoffman, former Organizing Director at UNI Property Services; currently Director of Global Organizing Partnerships at SEIU, Councillor Ian Greenwood, Chair of the LAPFF.
To register
Contact: Michael.Laslett@unitetheunion.org

SGAM trains staff in SRI
Société Générale Asset Management (SGAM) and the Société Générale network have joined forces this autumn to train bank branch staff in the field of socially responsible investing (SRI). A roving SRI unit is travelling around France, stopping off at some twenty venues in an effort to train between 2,000 and 2,500 customer service officers (CSOs). SGAM asset managers will outline the basics of SRI and the mechanisms for analysing Environmental, Social and Governance criteria, and will also present two flagship funds from the company's range. The 30-minute training sessions start with a quiz and end with a Q&A with the CSOs.
www.sgam.com

Sustainalytics and Jantzi Research Inc. announce merger
Sustainalytics and Jantzi Research Inc. announce the merger of their two companies. The new entity will operate as Sustainalytics globally and as Jantzi-Sustainalytics in North America. The merger combines two trailblazers in responsible investment (RI) research. The new company responds to an increasing appetite for international environmental, social and governance (ESG) research coverage underpinned by local expertise.
www.sustainalytics.com

Vigeo has partnered with Société Générale Securities to offer investors an innovative risk assessment approach
Corporate restructuring, which has become a permanent feature of the industrial landscape, has been exacerbated by the current economic downturn. Managing restructurings in a socially responsible manner enables companies to better control related risks in terms of human capital, reputation and operations. For this new study, Vigeo has partnered with the sell-side SRI research team of Société Générale Securities to offer investors an innovative risk assessment approach, combining both a social and financial perspective.
To obtain a copy of this study, please contact Vigeo.

SIF News

Belgian SIF: Belsif’s Sustainable Investment Week: October 17 to 23, 2009
Belsif will be holding its Sustainable & Socially Responsible Investment Week from October 17th to October 23rd 2009. More than 17 activities (seminars, info-sessions, study release, etc.) will be organised by Belsif members in the main Belgian cities.
Download programme

French SIF: A strategic turning point for the FIR
Last spring, after a 9 month consultation process, FIR General Assembly has adopted new statutes and internal rules, elected a new board and defined new strategic objectives. The FIR refocuses on advocacy with topics and working groups such as: Transparency and Labels, Reporting, Retail and General Public, Engagement, NGOs and Trade Unions, Islamic Finance, etc. CorDial for Corporate Dialogue, a new engagement tool will shortly be launched. In order to support these changes, a new Operations Manager was hired and Grégoire Cousté joined the FIR in June. A blog on SRI, open to many contributors and moderated by the FIR will be launched in October. The FAIRE that will take place in 2010 will be completely redesigned to fulfill expectations of all FIR members.

FIR Finance and Sustainability European Research Award 2010 is launched
The French SIF is inviting students and academics to submit their research work before November 1, 2009. FIR Award accepts submissions from students or researchers enrolled at European Universities or graduate schools, written in French or English. Three 5,000 € awards are given for Master’s Thesis award, PhD Thesis award and Academic Article award for the best-published article. Three 3,000 € research grants are rewarded for topics related to “financial instruments”, “social issues” and “Marketing SRI”. The FIR Award Ceremony for this 5th edition will take place January 18, 2010.
www.frenchsif.org or award2010@frenchsif.org

Italian SIF: Economics and Ethics
“Economy and ethics” is the title of the seminar organised by FFS, together with Fondazione Corriere della Sera and Impronta Etica, on September 28th in Milan – with the support of the Cooperative Banks. Starting from the contents of the recent Pope Benedict XVI’s encyclical Caritas in Veritate, outstanding speakers from the financial community, academia and religion have argued on how values influence economic activities. These topics of universal significance have acquired special significance in the light of the financial crisis.
http://www.finanzasostenibile.it/eventi/ (in Italian only)

UKSIF: National Ethical Investment Week, November 8-14, 2009
National Ethical Investment Week (NEIW) is a campaign to ensure that everyone knows that they have green and ethical options when it comes to their finance and investment decisions. NEIW brings together Advisers, Charities and Trusts, Financial Organisations, Faith Groups, NGOS and Community Groups to spread the word about green and ethical investing.
www.neiw.org

SRI Initiatives

92 funds receive approval to use first Novethic SRI Label
Novethic recently released the list of the first SRI labelled funds validated by its research house. The label is given to funds that use a complete environmental, social and corporate governance (ESG) analysis and have detailed information on the extra financial characteristics of the fund and how it is put together. By creating this label, Novethic can act as a reference which may encourage fund managers to more openly communicate on their SRI management procedures.
Eurosif is part of the expert committee which was consulted by Novethic regarding their methodology.
Read more

Largest Group Ever of World Investors Calls for Strong Global Climate Change Treaty
The world’s largest global investors recently issued a joint call for strong action this year from U.S. and international policy makers in the fight against global warming. Amid growing focus on upcoming international climate treaty talks and Congressional debate of climate and energy legislation, global investors issued a major policy statement calling for a strong and binding international treaty that will reduce pollution and catalyse massive global investments in low-carbon technologies. Signed by 181 investors collectively managing more than $13 trillion in assets, this investor statement is the largest of its kind on climate change in world history.
Read press release

Forest Footprint Disclosure engages investors
The Forest Footprint Disclosure Project (FFD) is a new UK government-supported initiative, created to help investors identify how an organisation’s activities and supply chains contribute to deforestation, and potentially link this 'forest footprint' to its value. The FFD will enable investors to obtain disclosure on the environmental and social issue of deforestation. Launched on June 15th at the UK Government’s DFID Headquarters the project has so far obtained support from 25 institutional investors with combined assets under management of over US $2.8 trillion. It is now receiving responses from the 218 major companies written to in July 2009 concerning their management of the forest impact of their supply chains. FFD is currently seeking to engage with additional asset owners and managers on these issues.
Contact c.harwood@forestdisclosure.com.
www.forestdisclosure.com

Impact Reporting and Investment Standards (IRIS): Creating a Common Language for Social and Environmental Impact
In the last few years, a proliferation of investment dollars has been allocated to funds and enterprises seeking to generate social and/or environmental impact as well as a financial return. In addition, close to 150 organizations are providing approximately $4B in capital and services to small and growing businesses in developing countries. And areas like Clean Tech and Socially Responsible Investing have seen double-digit growth year-over year, despite challenging economic conditions. Within the next 10 years, Impact Investing has the potential to grow to about 1% of total managed assets, which would result in about $500B of capital channelled toward social and environmental impact.
A second phase of work for the IRIS initiative began in late June 2009 with the aim to release Impact Reporting and Investment Standards Version 2.0 for 2010. Follow progress and submit feedback through their website: www.iris-standards.org

Swedish AP funds join sustainability initiative
The four Swedish AP pension buffer funds are among 13 institutional investors that have signed up to the Sustainable Value Creation Initiative (SVC) to encourage companies to adopt good governance of sustainability issues.
www.svcinitiative.com

Events

Europe's Microfinance Investment Summit (discount for Eurosif member affiliates)
October 6-7 2009, London UK
View programme *Eurosif Member Affiliates wishing to benefit from discount please contact us

Wealth Management & Responsible Investment: Opportunities For The Future
October 8, 2009, London UK
victoria@eiris.org or zita.moran@eiris.org

Eurosif’s Advisory Council Meeting
October 16, 2009, Paris
contact@eurosif.org

Belsif's Sustainable & Socially Responsible Investment Week
October 17-23, 2009, Belgium
www.belsif.be

Eurosif/oekom Biodiversity report event, with UKSIF, hosted by KBC Asset Management
October 22, 2009 (10.30am to 12.30pm followed by lunch), London, UK
contact@eurosif.org

UNEP FI 2009 Global Roundtable 'Financing change, Changing finance'
October 22-23, 2009, Cape Town, South Africa
http://www.unepfi.org/events/2009/roundtable/

International Working Group Fall 2009 Symposium
October 24-25, 2009, Arizona, USA
http://www.socialinvest.org/projects/iwg/events.cfm

SRI in the Rockies
October 25-28, 2009, Arizona, USA
www.sriintherockies.com

Sustainable World Capital & VB Research present: The Five Fund Forum, A Cleantech & Sustainable Showcase
October 27, 2009, London, UK
fivefundforum@vbresearch.com

Jobs

Please see our SRI Jobs page on the Eurosif website.
To post a vacancy please follow the instructions here.