News
European companies fail to link executive pay to ESG performance
26 January 2010
EIRIS has partnered with Eurosif (European Sustainable Investment Forum) to publish new research highlighting critical challenges and opportunities for companies and investors in relation to remuneration, incentives and long-term sustainability.
Research highlights and recommendations for investors and regulators include:
• 29% of FTSE Eurofirst300 listed companies have some commitment to linking remuneration to performance on environmental, social and governance (ESG) issues – although concerns exists around the extent to which performance targets are set as ‘soft targets’ thereby guaranteeing a minimum level of bonus
• Financial institutions account for 23% of the FTSE Eurofirst300 index but only 16% of financial institutions have an ESG-linked remuneration system
• Shareholders should engage with companies by voting against unacceptable remuneration packages and calling for and taking part in shareholder dialogue in determining remuneration policy,
• Regulators should promote active dialogue between companies and shareholders by legislating for a binding “say on pay” vote and setting appropriate guidelines to promote good remuneration practices and disclosure.
In the aftermath of the global financial crisis, remuneration policies and specifically the level of
bonuses of senior executives of companies and traders continue to hit the headlines. Investors and regulators have expressed concern that remuneration structures may have contributed to excessive risk-taking and are asking for a stronger focus to be placed on long-term reward schemes and sustainable growth.
Stephanie Maier, Head of Research at EIRIS said “As calls from investors, regulators and
NGOs to link extra financial ESG issues to executive remuneration increase, our research
shows that relatively few European companies are currently doing so. Furthermore,
approximately half of the companies that link remuneration to ESG issues do not clarify which
ESG areas are linked to the remuneration. ESG targets should be quantified, time-bounded,
verifiable and stretching.”
Matt Christensen, Executive Director of Eurosif, said “ESG issues are increasingly recognised as being linked to a company’s long-term financial stability. It is therefore critical that ESG concerns be integrated into a company’s business strategy, including directly in their remuneration guidelines.”
The report was presided over by a steering committee of financial analysts and foundations to
debate the issues and develop concrete ideas for recommendations going forward. The steering committee included representatives from CM-CIC Asset Management, Ethos Foundation, Groupama Asset Management, Henderson Global Investors, MACIF Gestion, PhiTrust Active Investors, Robeco and Société Générale Gestion.
To download a full copy of the research report click here.
Big businesses fail to protect the rights of workers in their global supply chains
17 December 2009
EIRIS' latest research identifies corporate breaches of the International Labour Organisation's (ILO) conventions on child labour, forced labour, trade union rights and equal opportunities in the supply chains of some of the world's biggest companies.
Based on EIRIS' Convention Watch research, the report A Risky Business? Managing core labour standards in company supply chains finds that 45% of companies analysed have no policy or management systems in place to protect labour standards in their supply chain and fail to report on the issue.
However, some companies appear to be responding to pressure from investors, NGOs and consumers on supply chain labour standards. 13% of developed world large and mid-cap companies are assessed by EIRIS as high or medium risk for supply chain labour standards and 66% of those companies are from the consumer industry. This industry demonstrates not only the most advanced response to breaches themselves, but is also the most likely to have been accused of such breaches and to respond to such allegations. Two consumer industry case studies of supply chain allegations are examined in this report, in relation to Gap and Primark.
Key findings:
- 13% of large and medium sized companies in the developed world are assessed by EIRIS as high or medium risk for supply chain labour standards
- Products which have the greatest risk of poor labour standards associated with their manufacture include clothing, footwear, toys, consumer electronic items and some agricultural products
- European and North American companies are the most likely to have been accused of breaching labour standards in their supply chains
- 90% of European companies and 70% of North American companies are rated as 'good' or 'intermediate' in their response to allegations of breaches of labour standards in their supply chains
- Companies in the consumer industry are most likely to have been accused of breaching labour standards in their supply chains
- The consumer industry also has the most advanced response to such allegations, with almost 40% of consumer goods company responses to allegations being assessed by EIRIS as 'good' and none assessed as having 'no evidence' of a response
A breach of supply chain labour standards represents a risk to investors as it can affect company value and performance. EIRIS' research enables investors to identify companies at risk of breaching core labour standards in their supply chain. It includes recommendations and suggestions on how investors can engage with companies to reduce risk and improve performance.
EIRIS' report also identifies the industries and countries at greatest risk, explores stakeholder concerns and examines the implications for investors. Examples of best practice on supply chain management are also included.
Dawn McLaren, report author and Head of Consumer Goods & Services Research at EIRIS said: "To reduce the risk of breaching ILO standards companies should link their management systems for supply chain labour standards with their internal procurement systems but very few are doing this."
"Companies are getting better at providing information on initiatives they have in place to protect labour standards in their supply chains. But more information is needed on what they uncover in their supply chains, such as the level of non-compliance amongst suppliers. This will help investors gain a better understanding of supply chain risk and enable them to track improvements in this area" she continued.
To download a full copy of the research report click here.
CIFs should do more to meet the needs of charity investors
9 December 2009
Common Investment Funds (CIFs) should do more to meet the needs of charities that wish to invest responsibly, according to research released today by the EIRIS Foundation.
Many of the world’s biggest companies are breaching the International Labour Organisation’s (ILO) core labour standards because they lack adequate policies and systems to protect the rights of workers in their supply chains, according to EIRIS’ latest report.
A Risky Business? Managing core labour standards in company supply chains? is based on EIRIS’ Convention Watch research and identifies breaches of ILO conventions on child labour, forced labour, trade union rights and equal opportunities in global supply chains. 45% of companies analysed show no evidence of having any policy or management systems in place to protect labour standards in their supply chain and fail to report on the issue.
Companies appear to be responding to pressure from NGOs on supply chain labour standards. 13% of developed world large and mid-cap companies are assessed by EIRIS as high or medium risk for supply chain labour standards and 66% of those companies are from the consumer industry. This industry demonstrates not only the most advanced response to breaches themselves, but is also the most likely to have been accused of such breaches and to respond to such allegations. Two consumer industry case studies of supply chain allegations are examined in this report, in relation to Gap and Primark.
Key findings:
- 13% of large and medium sized companies in the developed world are assessed by EIRIS as high or medium risk for supply chain labour standards
- Products which have the greatest risk of poor labour standards associated with their manufacture include clothing, footwear, toys, consumer electronic items and some agricultural products
- Industries at greatest risk from breaches include
- European and North American companies are the most likely to have been accused of breaching labour standards in their supply chains
- 90% of European companies and 70% of North American companies are rated as ‘good’ or ‘intermediate’ in their response to allegations of breaches of labour standards in their supply chain
- Companies in the consumer industry are most likely to have been accused of breaching labour standards in their supply chains
- The consumer industry also has the most advanced response to such allegations, with almost 40% of consumer goods company responses to allegations assessed by EIRIS as ‘good’ and none assessed having ‘no evidence’ of response
As labour standards in company supply chains becomes an issue of increasing importance to investors and consumers, EIRIS’ report investigates how the risk of breaching such standards can be managed. The report identifies the industries and countries at greatest risk, explores stakeholder concerns and examines the implications for investors. Examples of best practice on supply chain management are also included.
A breach of supply chain labour standards represents a risk to investors as it can affect company value and performance. EIRIS research enables investors to identify companies at risk of breaching core labour standards in their supply chain. It includes recommendations and suggestions on how investors can engage with companies to reduce risk and improve performance.
Dawn Mclaren, report author and Head of Consumer Goods & Services Research at EIRIS said: “To reduce the risk of breaching ILO standards companies should link their management systems for supply chain labour standards with their internal procurements systems but very few are doing this.”
“Companies are getting better at providing information on initiatives they have in place to protect labour standards in their supply chains. But more information is needed on what they uncover in their supply chains, such as the levels of non-compliance amongst suppliers. This will help investors gain a better understanding of supply chain risk and enable them to track improvements in this area” she continued.
Click here for a copy of the report.
A printable PDF of this press release is available here
Ethical Finance: Does Britain Care?
18 November 2009
44% of the British public are interested in finding out about the ethical credentials of the next financial product or service that they buy, according to EIRIS' latest survey.
The national online consumer survey, conducted by Ipsos MORI on behalf of non-profit research organisation EIRIS, explores post credit-crunch attitudes to ethical finance. The EIRIS survey finds that three-quarters of those interested in finding out more about the ethical credentials of a financial product or service said they are likely to take this into consideration when next buying a financial product or service.
Respondents surveyed felt that banks and financial institutions should prioritise current ethical concerns such as protecting human rights, tackling climate change, protecting the environment and investing in fair trade in their lending and investing activities, more so than avoiding 'sin' issues relating to the manufacturing of alcohol, tobacco and gambling which have traditionally been the focus of ethical investors.
Respondents were presented with a list of issues and asked 'to what extent do you think banks and financial institutions should prioritise the following issues when deciding who they will or will not lend money to or invest in on a scale of 1-10' (with 1 being low priority and 10 high priority). Issues emerging as the highest priority were protecting human rights (67% scoring 7 - 10), investing in fair trade (66%), protecting the environment (62%), avoiding arms manufacturers (61%) and tackling climate change (59%). A smaller proportion prioritised the avoidance of companies involved in the manufacturing of alcohol (22% scoring 7 - 10), tobacco (37%) and gambling (38%).
Key survey findings
Awareness
- 62% of those surveyed could not name or describe in detail any ethical financial products or services
- Awareness is low even among those that stated they were interested and likely to consider ethical credentials when next choosing a product or service; almost half (48%) of those in this sample could not name or describe in detail any ethical financial products or services.
Barriers
- The survey highlights a lack of knowledge as well as a lack of trust as key barriers to people purchasing ethical financial products and services
- 35% of respondents agree that they would not buy ethical financial products and services because they 'do not trust the claims of financial providers'
- 46% of respondents agree that 'there is not enough information available on how they make a visible difference in the world'
- 27% or respondents agree that they would not buy ethical financial products because 'there is no external verification of the ethical claims such products make'
Financial performance
- Only 15% of those surveyed agree that ethical products and services 'are less likely to perform as well as similar standard products'.
The survey is published as EIRIS launches www.YourEthicalMoney.org - 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.
Users can search the website for their bank or building society, as well as their insurance, credit card or mortgage provider, to find out how it measures up against a set of specially-developed green and ethical criteria. Users can also search for investment products, including ISAs and funds that match their green and ethical concerns; learn about how their pension scheme invests or find an ethical child trust fund. The site also features a section dedicated to student finance and guides on financial exclusion and greenwash in financial product marketing.
Mark Robertson, Communications and Development Manager at EIRIS said: 'Our survey provides firm evidence of growing interest in ethical finance, suggesting that the message that it is possible to both make money and make a difference when investing ethically is starting to get through to consumers. But levels of awareness, trust and confidence in ethical finance are low. The industry must respond with greater transparency and provide more information on how saving and investing can make a positive difference'.
'Last week, National Ethical Investment Week highlighted the growing number of green and ethical financial products which are available. EIRIS' new one-stop-shop consumer website will increase the visbility of ethical financial and provides consumers with all the tools and resources they need to choose ethical options as part of their financial planning' he continued.
A presentation featuring key findings from the survey can be downloaded here.
A printable PDF of this press release is available here
North American companies catching up on climate change
27 October 2009
But US and Canadian companies must do much more if they are to manage their carbon risks and play an active part in the transition to a low-carbon economy.
As the United Nations Climate Change Conference in Copenhagen draws nearer, the latest in EIRIS’ series of climate change tracker reports focuses on big businesses in the US and Canada to explore the progress they are making in reducing their climate change impact.
EIRIS 2009 Climate Change Tracker: North America finds that the vast majority of North American companies operating in sectors with a high carbon footprint now have a corporate-wide policy on climate change (91% compared to 93% at the global level). However, North American companies still lag behind their global peers in terms of implementing concrete measures to respond to the challenges of climate change.
Climate change has the potential to seriously impact shareholder value. It affects businesses across every sector of the economy – from aviation to agriculture. Given both the region’s cumulative greenhouse gas (GHG) emissions and the political significance of any steps the US makes to tackle climate change, the rest of the world is increasingly looking to how US companies are performing on climate change. The US had the tenth and Canada the third largest global increase of total GHG emissions from 1990 to 2006 .
As the acknowledged physical and economic impacts of climate change increase, investors need to develop a greater understanding of the extent and impact of corporate response to the issue. Highlights of EIRIS’ latest research into how some of the biggest companies in the USA and Canada are responding to these challenges are listed below:
Limited progress, further changes needed
- Rising CO2 emissions: Canada reported 751,974 gigagram (Gg) of CO2 equivalent emissions in 2006 (a 54.8% increase from base year 1990), whilst the US reported 6,087,487 Gg of CO2 equivalent emissions in 2007 (a 15.8% increase from base year 1990).
- North American companies are on a par with their global peers on climate change policy and short term emission targets: 91% have a corporate-wide climate change policy compared to 93% at the global level.
- Poor disclosure overall: 37% of North American companies have advanced or good disclosure compared to about 50% at the global level; 35% meet external verification of data compared to 51% at the global level. However, encouragingly 80% report absolute emissions compared to 84% at the global level; 72% disclose scope of data compared to 81% at the global level.
- Improvements in short-term targets: 57% of North American companies have made commitments to reduce short-term GHG emission targets, compared to 62% at the global level.
- Lack of integrated strategy: while policy is good, steps towards integration steps to implement the policy is lacking: only 16% of North American companies have made a commitment to link board remuneration to GHG emissions reductions compared to 28% at the global level; 43% have policies committing them to address climate change impact of their products compared to 71% at the global level.
- Product impacts ignored: only 9% have set targets to reduce indirect climate change impacts arising from their products, compared to 19% at the global level.
Given the importance of climate change and the likely impact of it on future long-term corporate financial performance, it is increasingly seen as an investor’s fiduciary responsibility to integrate consideration of climate change into their investment strategy as outlined in the UNEP-FI Fiduciary II report. Against a backdrop of the recent global financial crisis and growing evidence of the significant physical effects of climate change, the outcome of the Copenhagen Conference will set the direction for a financial and policy framework for future climate change investment for governments, corporations and investors.
Stephanie Maier, Head of Research at EIRIS said ‘Our research shoes that North American companies lag behind their European counterparts in some areas, which is not surprising given the existing policy framework and the historic lack of clear governance. But the good news is that recent positive policy developments announced by President Obama are appear to be providing an impetus for companies to act on climate change. There has been some improvement, due to the positive influence of responsible investors and the likelihood of operating in a stricter regulatory environment.’
Stephanie Maier added ‘Investors should focus their attention on engaging with companies to improve disclosure of GHG emissions and ensure that corporate commitments to reduce climate change impacts apply to emissions associated with products – as well as direct emissions.’
As national, regional and international initiatives to regulate GHG emissions move forward, companies will need to better manage their carbon risks and take firm steps to be part of the transition to a low-carbon economy. Therefore investors need to incorporate analysis of the corporate response to climate change into the mainstream financial assessments of the companies in which they invest.
EIRIS has developed a comprehensive suite of products to help investors assess their portfolios and design investment strategies in response to the challenge of a carbon-constrained economy. Click here for further information.
To download a full copy of the research report click here.
A printable PDF of this press release is available here
90% of wealth managers say responsible investment portfolios have performed the same or better than other investments, survey finds
12 October 2009
Today sees the launch of a new report investigating high net worth (HNW) individuals' perceptions of responsible investment (RI) and its implementation across the wealth management industry.
The report Responsible Investment and Wealth Management: Opportunities for the future is written by RI specialists EIRIS and published in association with wealth management newswire WealthBriefing and the leading private bank Kleinwort Benson.
Based on a survey of the global readership of WealthBriefing and featuring comment and analysis from a panel of prominent RI experts, the report explodes the performance myth that responsible investments under-perform. It identifies a growing awareness of environmental, social and governance issues amongst HNW individuals and finds that the financial crisis has had a positive effect on the view that wealth managers take towards RI. Over half of wealth managers included in the survey reported that the current financial situation has lead to them taking governance issues and a potentially tighter regulatory framework into account within their clients' portfolios.
Key findings:
- 90% of wealth managers responding to the survey said that their RI portfolios have performed the same or better than their other portfolios.
- HNW individuals are now more aware than ever of social, environmental and governance issues and how they might relate to their investments than ever before.
- The financial crisis has made 30% of respondents more likely and 60% just as likely to offer RI to their clients.
- 55% of wealth managers are more likely this year to look at governance and impending regulatory issues in their clients' portfolios.
- Wealth managers identified a lack of clarity and information on performance as a key barrier to implementing bespoke RI solutions for their clients.
- Most HNW individual interest in RI is from the entrepreneurial community.
- HNW individuals are increasingly moving between wealth managers, making client retention challenging.
- 70% of wealth managers' clients see a clear link between their philanthropic activity and investing in line with their philanthropic goals.
This is the third year that EIRIS has mapped out the RI landscape within the wealth management industry. This year's report identifies an increased demand for RI, as demonstrated by the 588 signatories who have now signed up to the UN Principles for Responsible Investment initiative, representing funds under management in the region of $18 trillion. The report finds that concerns around climate change and child labour have now become an integral part of the social landscape and examines the extent to which these and other issues are being addressed in constructing investment portfolios.
With many HNW individuals looking to mitigate risk and focus on long-term goals rather than short-term gains, the research identifies a growing number of investors seeking to understand responsible sustainable investment and the value of screened portfolios. The study affirms the extent to which wealth managers should recognise this interest and be putting in place the necessary investment and screening options to cater for any of a client's ethical or investment needs. The panel of RI experts were united in their agreement that as a result of the credit crisis there would be a greater focus on the importance of board structure, accountability, governance and remuneration.
It is hugely significant that RI has made such headway in recent years to include positive and negative screening elements, risk mitigation and the best of sector approaches. The research shows that future generations expect to gain a better understanding of what their money is achieving and using RI ensures that clients' investment activities support rather than undermine their philanthropic aims. Solid foundations have already been laid for the implementation of RI strategies in the UK and there is firm evidence from this report to support RI as having a central role to play in the risk/return analysis of portfolios for HNW individuals.
'Our study illustrates how the financial crisis has caused real polarisation among wealth managers. Client retention is increasingly a challenge and wealth managers can improve retention rates and gain a competitive advantage by responding to the increasing numbers of HNW individuals who are expressing an interest in responsible investment' explained Victoria Woodbridge, Senior Client Relationship Manager at EIRIS.
Guy McGlashan, Head of Private Wealth Management Services at Kleinwort Benson said 'It is our job as wealth management professionals to be more proactive in the education of both private clients and charities in terms of RI capabilities. The financial landscape has changed immensely since the demise of Lehman and we have a responsibility as wealth managers to understand not only a client's investment outlook but also their philanthropic drivers. We believe wealth management tools will evolve as RI takes on a significantly greater role in mitigating risk and delivering investment goals.'
A copy of the full report for 2009, entitled 'Responsible Investing and Wealth Management: Opportunities or the future' and retailing at £195 is available from WealthBriefing, please contact Philip Harris, on +44 (0) 207 610 8104.
A printable PDF of this press release is available here
Two-thirds of charity advisers now asking the ethical question
1 October 2009
But charity financial advisers could do more to help ensure charities invest in line with their mission, survey finds
Latest research from the EIRIS Foundation Charity project and the Charity Finance Directors Group (CFDG) finds that 87% of UK charities with an ethical investment policy said that their financial adviser has asked them about incorporating ethical issues within their investments. However, for those charities without an ethical investment policy, only 43% of charities said their adviser has asked about ethical investment.
Socially responsible investment (SRI) enables charities to invest in line with their mission, avoiding conflicts with their work and risks to their reputation. Over 90% of the general public believe that charities should invest ethically, but practice still falls a long way short of this.
Investment advisers and consultants can play a crucial role in the decisions that charities make about their investments and whether to consider social, environmental, ethical or governance factors. However, some advisers have been criticised for discouraging charities from considering ethical or socially responsible investment (SRI) and linking their investments with mission.
Are Charity Consultants Helping or Hindering the Development of SRI probes charity advisers' current thinking on SRI, how they see their role in the evolving SRI market and what would increase the take up of SRI by charity investors. It compares the views of charities and evidence from the wider SRI sector to explore the real and perceived barriers to change.
Key findings:
- 15% of charities without an ethical policy said that advisers were discouraging or very discouraging. This compares to 4% of charities with an ethical policy
- Some advisers do not see it as their role to ask charity investors about SRI particularly if it is a charity with broad aims and objectives
- Advisers are less likely to ask charities about SRI if they don't already have an ethical investment policy - and may be more likely to be discouraging where no such policy is in place.
- Advisers agree that the consideration of social and environmental risks should not harm returns in the long-term, and could improve them. But many focus charity clients' attention more on short-term potential risks of under-performance and volatility, even though studies repeatedly show that investing ethically does not mean that financial performance has to be sacrificed.
- Advisers identified a lack of appropriate products as a key limiting factor to the promotion and take-up of SRI.
Advisers also feel that some trustees are uncertain about their role in 'imposing ethical considerations'. But as one adviser commented, 'Trustees need to change their view of their obligations - they are not in a moral vacuum and they can go beyond their governing documents.'
Report author Sam Collin said 'Many of the challenges raised by advisers could be easily overcome. The intermediary role of advisers means that they could be doing more to breakdown the perceived barriers, provide clear and up to date information to trustees and communicate gaps in unmet demand to service providers.'
'Issues such as corporate governance and climate change have a higher profile than ever before in the investment community. As the significance of ESG issues is increasingly recognised by mainstream investors the market for advice on responsible investment is also set to grow. Being at the forefront of new developments could help advisers take advantage of this growth' she concluded.
The report recommends that advisers could do more to:
- Raise SRI issues with all charities
- Provide information and training to trustees
- Include environmental, social and governance (ESG) issues in standard reviews of investment managers
- Keep informed of the latest developments
- Communicate market gaps to fund managers
Click here to download a full copy of the research report.
A printable PDF of this press release is avilable here
EIRIS named UK’s best ESG Research House
14 September 2009
Global responsible investment specialists 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.
Over the last few years, EIRIS has continued to develop the scale and scope of its research to match the needs of investors wishing to mitigate ESG risks and maximise investment opportunities. 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.
EIRIS' global extra-financial research is used by more than 100 institutional investors around the world. Developed with direct input from investors, EIRIS has recently launched a new Climate Change Toolkit to enable investors to fully integrate climate change, as well as a UN PRI Toolkit to help asset owners and asset managers implement their commitments to the Principles for Responsible Investment.
Peter Webster, EIRIS' Executive Director said 'We welcome this award as a reflection of EIRIS' dedication to producing high-quality, relevant research on a broad range of environmental, social, governance and other ethical issues.'
For more information on the 2009 World Finance Awards visit www.worldfinance.com
A printable PDF of this press release is avilable here.
One-third of the world's biggest firms not addressing climate change
London, Monday 5 August 2009
In the run up to the United Nations Climate Change Conference in Copenhagen, latest research from EIRIS focuses on 300 of the world's largest companies to examine the progress they have made over the last 12 months in responding to the challenges of climate change.
Climate Change Compass: The road to Copenhagen analyses the 300 largest companies listed on the FTSE All World Index and finds that just over a third are failing to address the risks they face from climate change - although the quality of companies management response to climate change has improved overall.
Climate change has the potential to seriously impact shareholder value, especially in the medium to long term. As the significant physical and economic impacts of climate change increase, investors need to develop a greater understanding of the extent and impact of corporate response to the issue. Highlights of EIRIS' research into how some of the world's largest companies are responding to climate change challenges are listed below:
Some improvements, but further momentum needed
- Over a third (35.6%) of global 300 companies have a high or very high climate change impact1. Of these, 33% are failing to mitigate their climate change risk (down from 34% in 2008)
- 99% of companies with a high or very high climate change impact has a corporate-wide climate change commitment (in comparison with 84% in 2008). This improvement can be explained by a number of drivers coming into play including the increasing activity of investors
- Almost three quarters of companies (73% compared with 61% last year) have referenced the wider policy context by referring to international targets, regulations or the scientific imperative
Opportunities at Copenhagen
- The UN Climate Change Conference may create significant opportunities for companies - linked to the development of green stimulus packages or a clearer regulatory framework.
Engagement is key
- Many large cap companies face significant climate change risks and opportunities. Investors must understand the impact these issues will have on their portfolios and integrate climate change into their engagement strategies or when exercising voting rights.
Cliamte change affects businesses across every sector of the economy - from aviation to agriculture. EIRIS' latest research outlines the various risks and opportunities for companies and their investors which climate change presents, including:
- Regulatory challenges - Copenhagen may bring about a number of changes in national and international legislation for reducing green house gas (GHG) emissions. Potential environmental taxes and compliance costs must therefore be factored into company valuation
- Changing market dynamics - relating to higher and fluctuating energy costs, especially for energy intensive sectors. Changing consumer attitudes and demand patterns also open up opportunities for new technologies, products and markets
- Changing weather patterns - security and cost of water and energy supplies, plus the physical risks of climate change, including the damage of assets as a result of extreme weather events all have cost implications
- Reputational - customer, employee, investor and societal perceptions are having an increasing impact on brand value
Given the importance of climate change and the likely impact of it on future long-term corporate financial performance, it is increasingly seen as an investor's fiduciary responsibility to integrate consideration of climate change into their investment strategy as outlined in the UNEP-FI Fiduciary II report2. Against a backdrop of the recent global financial crisis and growing evidence of the significant physical effects of climate change, the outcome of the Copenhagen Conference will set the direction for a financial and policy framework for future climate change investment for governments, corporations and investors.
Stephanie Maier, Head of Research at EIRIS said 'Our research identifies a number of improvements in the strategies that companies have put in place with regard to their climate change impact. It is encouraging to see some evidence that regulation and the increasing engagement activity of investors on climate change is driving companies to focus more attention on the climate change risks and opportunities they face.'
However, there are areas where further progress can be achieved. Stephanie Maier added 'Board level responsibility and ownership of a company's response to climate change is crucial. Linking remuneration to performance in this area will help ensure companies remain focussed on the issues. Likewise the increased use of verification for GHG emissions data will provide investors with further reassurance on the reliability of the information published. These are key areas where investors should exert influence so as to help them minimise their risk.'
EIRIS has developed a comprehensive suite of products to help investors assess their portfolios and design investment strategies in response to the challenge of a carbon-constrained economy. Click here for further information.
The full research report is available is here.
A printable PDF of this press release is available here.
Major emerging market investors want more disclosure on ESG issues, global survey finds
June 22, 2009
Brazil and South Africa Recognised for Most Progress on ESG disclosure; Survey Respondents Represent $130 Billion in Emerging Market Assets
Seven out of ten major asset managers and institutional investors collectively representing $130 billion of emerging market investments cited lack of environmental, social and corporate governance (ESG) disclosure as the key challenge to investing in emerging markets. That is the main finding of a new survey from the Emerging Markets Disclosure (EMD) Project, an international coalition of investors and organizations working to improve sustainability disclosure by companies in emerging markets. The survey was analysed by EIRIS and sponsored by the International Working Group of the Social Investment Forum, which provided organizational support for the project.
The survey shows that at a time when increasing numbers of institutional investors are demanding more openness and transparency, poor ESG disclosure by emerging market companies threatens to undermine investor confidence and could potentially reduce investment allocations to emerging markets.
Survey respondents commended two emerging market countries - Brazil and South Africa - for having made the most progress towards greater ESG disclosure. Both countries have developed a sustainability index to which their listed companies can aspire through improved disclosure. The full survey findings report will be released on June 25th in New York City at the 'Integrating ESG into Portfolios' conference sponsored by Responsible Investor and the Social Investment Forum.
Survey Highlights
Brazil was the top country allocation and Petrobras (Brazil) was the top emerging market holding for investors who responded to the survey. The top five country allocations after Brazil also included China, India, Mexico and South Korea, respectively. The top ten individual company holdings were Petrobras, (Brazil), Samsung Electronics (South Korea), China Mobile (China), Taiwan Semiconductor (Taiwan), Teva (Israel), Vale Do Rio Doce (Brazil), America Movil (Mexico), Gazprom (Russia), Posco (Korea), and Ambev (Brazil).
Challenges, drivers and opportunities
- The biggest challenge of investing in emerging markets identified is a lack of corporate disclosure on ESG issues in emerging markets Key drivers for improved ESG disclosure include development of national sustainability indices, ESG listing requirements and influences of global standards and norms
- Improved corporate disclosure on ESG issues could persuade more responsible investors to increase their allocation to emerging markets
Differing approaches
- Europeans' allocation to emerging markets is nearly double that of North Americans in the sample
- Europeans are also much more likely to focus on corporate governance criteria and corruption issues within their responsible investment approach, while North Americans favour negative screening (e.g. screening out tobacco producers, divesting from Sudan)
Shared characteristics
- Three-quarters of respondents are members of at least one organization devoted to corporate social responsibility or responsible investing issues, most commonly the UN Principles for Responsible Investment
- Nearly two thirds had at least six years of experience in emerging markets
The investors who commissioned the survey encouraged emerging market companies, stock exchanges and regulators to respond to the challenge laid by the survey results. "While the results are encouraging, the survey demonstrates the continued need for greater ESG transparency in emerging markets. Analysts need ESG disclosure in order to identify the most sustainable companies in which to invest," said Mike Lombardo, Senior Sustainability Analyst of Calvert Investments, who is EMD Project's South Africa country team lead.
Lauren Compere, Senior Vice President of Boston Common Asset Management and the EMD Project's Korean country team lead, said, "As a global responsible investor, Boston Common would like to increase our investment opportunities in emerging markets. We are encouraged by the initiative taken by some of our emerging market holdings, including Samsung Electronics and Posco, to increase their level of ESG reporting. We hope that the survey findings will help articulate the need for better ESG disclosure by a broader set of emerging market companies."
Sonia Wildash, report author and Senior Researcher at EIRIS, said "Emerging markets hold significant opportunities for responsible investors. But if they are to better understand emerging market company ESG risks and opportunities, then corporate communication to investors clearly needs to improve. An engagement approach among emerging market investors should seek to improve the corporate responsibility and disclosure practices of companies."
Seth Freeman, CEO & Chief Investment Officer of EM Capital Management and the EMD Project's India country team lead, noted, "In light of India's high domestic economic growth and increasing global impact, the opportunities and potential outcomes of expanding ESG reporting in India are as diverse and large as the India Story itself." Melissa Brown, Director of IDFC Global Alternatives, LTD and former Executive Director of ASrIA, also noted that, "Asian companies are slowly, and sometimes impressively, building the structures they need for ESG reporting. Unfortunately, it is an iterative process. They need more stakeholder feedback in order to target their efforts. In order to get more investor feedback, they need to start reporting. This is where the EMDP can play a critical role. By providing engagement with local and foreign investors, the EMDP serves as a valuable catalyst for better ESG disclosure."
Click here to download a copy of the full report.
For a printable PDF of this press release, click here.
Investors urged to focus attention on rights of indigenous peoples
Boston, 26 June 2009
Global responsible investment research specialist EIRIS and survival international are supporting a United Nations Principles for Responsible Investment (UN PRI) programme to facilitate engagement between investors and their investee companies to promote and respect the rights of indigenous peoples around the world.
The UN PRI collaborative engagement draws on latest research from EIRIS which explores the challenges and opportunities faced by major companies operating in parts of the world where the rights of indigenous peoples are threatened.
According to the United Nations there are 370 million indigenous people in the world and 5,000 distinct indigenous cultural identities in more than 70 countries. There are believed to be more than 100 uncontacted groups in the world. Although indigenous people only account for 5% of the world's population, they account for over 15% of the world's poor.
Companies engaging in activities that may infringe the rights of indigenous peoples, as enshrined within the UN Declaration on the Rights of Indigenous Peoples, face increasing reputational risks potentially leading to issues with access to capital, damage to brand, licence to operate, and operational risks such as the threat of litigation and increased regulation.
The EIRIS report Indigenous rights: risks and opportunities for investors highlights the rights of indigenous peoples as a key human rights issue that companies and their investors should take into account. It covers companies operating in sectors (mining, oil & gas, agricultural producers and forestry paper) and countries considered to be high risk for indigenous peoples. The research also highlights key risks areas which investors should consider when engaging with companies on indigenous rights issues such as access to investment capital; increased regulation; litigation and reputational risk.
Key findings:
- Big companies at risk: 250 companies (with a total market value of GBP 1.7 trillion) have been identified as having an exposure to indigenous rights. 17% of companies have a high risk exposure to indigenous rights issues.
- Few companies report on indigenous rights issues: The quality of reporting is generally poor: whilst most companies provide a response to allegations of breaches of indigenous rights few report voluntarily on areas of non-compliance.
- Fewer than 20% of companies have adopted a policy supporting free prior informed consent for indigenous peoples: 19% of these companies have a corporate-wide indigenous rights policy. Only 15% of companies have a corporate-wide policy supporting free prior informed consultation.
- Only a fifth of companies disclose employment data on indigenous people: 19% of companies disclose employment data on indigenous peoples.
- Fewer than 10% of companies have a policy for involuntary resettlement: Just over 6% of companies have a policy covering involuntary resettlement.
Given the level of NGO and media attention to the issue of indigenous peoples' rights and the introduction of laws and regulation in many countries, companies with strong commitments and effective engagement processes will undoubtedly benefit in an environment where access to land and resources is becoming increasingly restricted.
Stephanie Maier, Head of Research at EIRIS said 'Indigenous rights is a complex issue that companies and their investors need to address and is especially important for extractive companies as they seek to expand and gain access to land. Our research explores the challenges and opportunities faced by major companies operating in parts of the world where the rights of indigenous peoples are threatened. We are very pleased to be working with the UN PRI and Survival International on this important area of engagement'.
For a printable PDF of this press release, click here.
Japanese companies lead in responding to challenge of Climate Change
28 May 2009
Global responsible investment specialists EIRIS today released research analysing the current state of Asian companies' response to climate change in comparison with their global peers.
Climate Change Tracker: Asia focuses on Asian (Japan, Hong Kong, South Korea, and Singapore) companies listed on the FTSE All World Developed Index.
Climate change is widely recognised as one of the most significant challenges facing the global economy. China has reportedly now overtaken the USA as the world's biggest CO2 emitter and continued economic growth in Asia will give rise to significant increases in greenhouse gas (GHG) emissions. Energy use in all Asian countries accounted for approximately one quarter of the global energy use in 2006 and mainland China accounted for 16% of global energy use..
Carbon management by Asian companies is undoubtedly a critical theme for asset owners and asset managers. Climate Change Tracker: Asia sets out the national climate change policy context in different Asian Countries. It analyses corporate response performance on climate change in the key areas of governance, strategy, Greenhouse gases (GHG) targets and disclosure, and examines the implications for investors.
Key findings for investors:
- Climate change risk profile of Asian companies is similar to those elsewhere: about a third of companies in both Asia (32%) and the FTSE All World Developed Index (34%) and are classified as very high or high impact for climate change. This represents GBP 523 billion and GBP 3.8 trillion market cap respectively as at the end of March 2009.
- Japanese companies are top in overall performance: 85% of Japanese 'high climate change risk' companies have either 'good' or 'intermediate' climate change response. But only 77% of their global peers and 24% of other Asian companies display an equivalent response. This strong performance is driven by Japanese regulations and initiatives which have had a positive impact on companies' performance against global peers and other Asian companies.
- GHG targets: Targets are an important component of corporate climate change strategy and a key indicator of a company's commitment to achieving GHG emissions reductions. Over two thirds (70%) of Asian very high and high risk companies have short-term targets. However, Asian companies perform less well on long-term targets, where only 5% of companies have long-term targets. This compares to over three fifths (63%) and almost one third (32%) of global companies have short-term (less than five years) and long-term (at least five years) targets respectively.
- Japan matches global emissions disclosure, particularly on risk quantification: 88% of Japanese 'high risk' companies disclose either absolute or normalised emissions data. This matches average levels of emissions disclosure displayed by the FTSE All World Developed Index constituents. Moreover, 62% of Japanese companies clearly quantify the climate change risk they face.
Peter Webster, Executive Director at EIRIS said 'Many investors are still focussed on greenhouse gas emissions when assessing corporate performance on climate change. But what's equally important is the extent to which company management are responding to the challenges through strong governance, strategies, emissions targets and disclosure. As the Copenhagen Climate Change Summit approaches its vital that investors fully understand the risk and opportunities which climate change presents'.
In order to facilitate effective management of carbon risk, EIRIS developed a Climate Change Toolkit to assist investors with identification, engagement and integration of carbon risk of your portfolio. Further information on EIRIS Climate Change Toolkit is available here.
Click here to download a copy of the full research paper.
For a printable PDF of this press release, click here.
Trusts and foundations should think again on financial risks
Monday 18 May 2009
Trusts and foundations should consider environmental social and governance (ESG) risks and opportunities in their investments to safeguard the value of investments and protect the interests of future beneficiaries - according to new research released today by the EIRIS Foundation.
Sustainable returns: The value of environmental, social and governance factors for foundation investments examines why issues such as climate change and corporate governance pose financial risks and opportunities for trusts and foundations.
Despite their role in supporting pioneering social and environmental projects through grants, many trusts and foundations are still lagging seriously behind other asset owners when it comes to responsible investment. This can lead to significant conflicts between mission and investments.
The financial crisis has exposed the risks that all investors, including trusts and foundations, are exposed to and highlighted the significance of accountability, transparency, the consideration of 'extra-financial' research in investment processes, responsible ownership and long-term investing.
The EIRIS Foundation's latest research sets out why these values make sound financial sense for trusts and foundations. It explores the growing body of evidence to show how the integration of ESG risks and opportunities into investment processes can safeguard and enhance value for shareowners.
The paper also highlights the following steps that trusts and foundations should take to ensure they are managing investments in a responsible and sustainable way:
Key findings:
- 1) Agree a position on responsible investment
- 2) Research investment manager's expertise and practice in ESG integration
- 3) Include ESG integration in the investment mandate
- 4) Join collaborative initiatives, such as the Carbon Disclosure Project
- 5) Vote shares on ESG related issues
- 6) Engage with companies directly or via investment managers
- 7) Invest in sustainability-themed funds such as greentech, microfinance or timber
- 8) Invest in responsible investment funds that use ESG integration
Report author Sam Collin, Charity Adviser at the EIRIS Foundation, said 'Responsible investment is nothing new - some charities have been doing this for decades. There is compelling evidence that ESG issues have a financial impact and this shouldn't be ignored by trusts and foundations. This fits clearly with the fiduciary duties of trustees and with Charity Commission guidance. Trusts and foundations that fail to take ESG issues into account could be seen as acting imprudently and failing to secure their long term financial sustainability.'
Alastair Hanton, Chair of the EIRIS Foundation, said added 'The integration of ESG factors into investment processes is now recognised by the mainstream as a way to enhance value - as demonstrated by the $18 trillion worth of signatories to the United Nations Principles for Responsible Investment. It's not enough to just assume that ESG issues are being integrated into the investment process. Acting as responsible owners, trusts and foundations should question and encourage their asset managers to adopt and implement best practice in responsible investment.'
For a printable PDF of this press release, click here.
Financial institutions fail to manage their environmental, social and governance risks, global survey finds
20 April 2009
Latest research from global responsible investment specialist 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).
ESG risks vary from sector to sector and from company to company. They can stem from issues as varied as human rights, discriminatory practices, child labour, bribery and corruption, climate change, pollution and environmental issues, obesity and product safety.
In assessing each company's ESG risk management system EIRIS' research takes the following components into account:
- Board responsibility for ESG issues
- Risk management systems to address ESG risks
- Identification of ESG risks
- Potential ESG liabilities and ESG opportunities
At the recent London Summit the G20 leaders released a statement that included pledges 'to build an inclusive, green, and sustainable economic recovery'. By incorporating ESG criteria into their investment decision-making and ownership practices investors can directly influence companies to improve performance in these areas. EIRIS' latest research shows that many companies are not managing their ESG risks effectively and, as such, is a wake-up call to investors.
Key research findings:
- Financial sector worst performer: 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. This is in part a result of poor disclosure and a failure to recognise the importance of ESG issues.
- Limited progress: companies have demonstrated a small improvement in ESG risk management. Between 2005 and 2008 the number of companies achieving an 'average' overall score for their risk management systems has increased by 7.4%. However, considerable room for improvement still remains.
- Japanese companies show biggest improvement: 19% showed an improvement in their risk management systems. In contrast, companies in Australia and New Zealand showed very little progress on ESG (only improving by 0.4% overall).
- Resources sector best performer: partially a reflection of the very public ESG issues that these companies have had to deal with such as environmental damage in the Niger Delta or the 2005 Texas City refinery explosion.
Initiatives such as the UN Principles for Responsible Investment (PRI) and the UN Global Compact have helped push ESG issues up the investment agenda. There is also increasing scrutiny of these issues by regulators; the Danish government has announced that companies will be legally bound to report on CSR issues and the Norwegian government is also urging companies to do the same.
In this context there is likely to be increased pressure on companies to provide evidence that they are managing their ESG risks. Those companies that are not already doing this are at risk of incurring significant costs to their business.
Stephanie Maier, Head of Research at EIRIS said 'There is a growing view among investment professionals that ESG issues can affect the performance of investment portfolios. This latest research highlights the big disparities that exist in the extent to which companies around the world are effectively managing the various ESG risks they face. Our new global ESG risk management criteria will enable investors to build a comprehensive picture of how well a company is managing the issues and opportunities presented by ESG risks.'
Recognising the challenges that committing to the UN Principles for Responsible Investment represents for investment managers and asset owners, EIRIS has recently launched a PRI toolkit that offers practical solutions for investors looking to implement the UN PRI.
Click here to download a copy of the research
A printable PDF of this press release is avilable here.
EIRIS' methodology is awarded AI CSRR certification
Monday 30 March 2009
Global responsible investment specialist EIRIS has been certified against a new international Voluntary Quality Standard (VQS) for Corporate Sustainability and Responsible Investment research.
Launched by the Association of Independent Corporate Sustainability and Responsibility Research (AI CSRR) the robust VQS has been developed to drive high quality research and analysis for organisations in the field.
The Standard is a direct response to growing investor and company demand for research groups to incorporate the key principles of integrity, transparency and accountability into their research on the environmental, social, governance (ESG) and ethical performance of companies. It is designed to enhance quality within the research process of each provider without redetermining and dictating the precise research output.
The VQS assessment and auditing process requires research groups to:
- focus on continuous quality improvements and develop an action plan to drive quality across all research areas
- develop and implement best practice and codes of conduct to ensure independence, integrity, probity, transparency and accountability within each research group as well as in the research process
- ensure the robustness of each group's research processes and embed continuous monitoring of quality in their work
- reassure clients and other stakeholders that research groups 'do what they say they do'
- publish an externally verified Transparency Matrix that reveals the data necessary to reinforce trust and confidence in each research group's methodology
The launch of the new VQS follows a European Commission funded development process which included consultation with key stakeholders including investors, civil society, and responsible investment sector experts, led by AI CSRR.
AI CSRR welcomes applications from other research groups who wish to achieve certification.
Peter Webster, Executive Director at EIRIS, said 'Our clients rely on our research to make better informed investment decisions. Quality, in terms of accuracy, timeliness and relevance is core to EIRIS. Participating in the VQS has driven a thorough review of our quality management systems and helped focus our organisation on where we can improve on already robust quality standards. We welcome the VQS as part of our commitment to continuous quality improvement'.
Sue Bird, Policy Co-ordinator - Local Employment Development and Corporate Social Responsibility at the European Commission, said 'The completion of the CSRR-QS 2.1 Voluntary Quality Standard for CSR research comes at a key time in the development of the interface between companies and socially-responsible investors. More than ever, investors need quality information on which to take decisions in relation to companies' CSR activities, and the current economic and financial crisis sharpens the need for ethics and responsible practices in and by businesses. I am confident that CSRR-QS 2.1 will make a valuable contribution to furthering SRI and CSR'.
Matt Christensen, Executive Director at Eurosif, the European Sustainable Investment Forum, said 'We welcome the new VQS as a key initiative to further enhance the credibility of the corporate sustainability and responsible investment research sector. The Standard will help to ensure that research groups practice what they preach when demanding corporate and investor transparency. It will help them to remain focused on delivering the quality research that is needed in the rapidly evolving world of responsible investment'.
James Gifford, Executive Director of the UN Principles for Responsible Investment, said 'The principles of integrity, probity, transparency and accountability have never been so important. The development of quality standards should help further increase confidence in ESG research providers at a time when openness and accountability are valued by an ever increasing number of responsible investors'.
Click here for further information on the CSRR-QS 2.1 Standard.
A printable PDF of this press release is avilable here.
EIRIS celebrates opening of its French office with new business wins
6 March 2009
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.
A printable PDF of this press release is available here.
Companies in emerging markets catching up on environmental, social and governance issues
2 March 2009
Some emerging market companies now match the performance of their peers in developed countries on environmental issues, but many more lag behind on human rights
Corporate responsibility, long seen as the preserve of companies in developed economies, is gaining ground in developing countries according to a review of ESG practices in 40 large emerging market companies - a new report published by Sustainable Investment Research Analyst Network (SIRAN), a working group of the Social Investment Forum (SIF).
SIRAN has partnered with global sustainable investment specialists EIRIS to assess 40 leading companies in ten emerging markets against key environmental, social and governance (ESG) criteria, including indicators on board practice, bribery, human rights, labor standards in the supply chain, health and safety, environment, climate change and biodiversity. Countries assessed in the study include Brazil, China, India, Indonesia, Israel, South Korea, Malaysia, Mexico, Russia and South Africa.
This report illustrates how the largest corporations in developing economic markets are addressing ESG issues and highlights the risks and opportunities these issues present to investors in emerging markets.
Key findings include:
- Progress - most companies show evidence of addressing at least some environmental, social and governance issues. This highlights opportunities for investors to encourage further progress by engaging with companies to seek better corporate disclosure.
- Best performers - the South African and Brazilian companies in the sample stood out overall as consistently having the highest assessments. One reason may be that their local stock exchanges have each launched a responsible investment index.
- Climate change - in analyzing companies by sector, disclosure related to climate change was strongest amongst companies in the resource sector, but even so, half of the 12 resource companies had no evidence of climate change disclosure.
- Human rights - almost all (93%) of companies assessed on this issue received only a 'limited' grade for their human rights policies. No companies achieved a grade higher than 'limited' for their human rights systems or reporting.
- Health and safety - all but two of the 12 companies in the resource sector, where health and safety is a major concern, showed some evidence of policies in this area.
- Bribery - most companies publicly disclosed some kind of anti-bribery policy. However, a majority of companies did not have a clear anti-bribery system nor showed evidence of reporting on their anti-bribery initiatives and only disclosed limited details of their management systems and performance.
- Board governance - more than 80% of the companies disclosed their remuneration to directors, and 70% separated the positions of board chair and CEO, but fewer than half had boards where one-third of the directors were independent.
Emerging markets are becoming the focus of international corporate responsibility initiatives. Emerging Markets Disclosure Project (EMDP), an international initiative spearheaded by SIF has surveyed the state of sustainability reporting in several emerging markets and has a sign-on statement for investors encouraging emerging market companies to improve sustainability reporting.
Meg Voorhes, Research Director of the Social Investment Forum, said: 'This report demonstrates that the demand for corporate responsibility and disclosure is truly global, and that companies in emerging markets are beginning to respond and, in some cases, leading the way. Socially responsible investors should take to heart the report's call for thoughtful dialogue with emerging market companies.'
Stephanie Maier, Head of Research at EIRIS said: 'Increasingly, responsible investors are focusing on emerging markets as they seek to diversify their equity investments. This research will help investors to identify ESG risks and opportunities which exist beyond developed markets when constructing their responsible investment strategies.'
Click here to download a copy of the report
A printable PDF of this press release is available here.
