E-newsletter of Investing for the Soul May 30, 2011
Top ethical investing news for May 2011
Links may only be valid a limited time Commentaries by Ron Robins
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Spectrum Group Reports 48% Of US Investors With $100,000 In Investments Favour SRIs. - [COMMENTARY] "Forty-three percent of investors with a net worth of $100,000 and $1 million (not including primary residence) consider a company′s corporate responsibility and societal concerns as an investment factor. This is up slightly from 2010. Socially responsible investing is a greater priority for younger investors ages 54 and under with nearly half (48 percent) considering it as an investment factor versus 36 percent of investors ages 65 and up. While this age group is the least likely to consider the social responsibility of their investments, this number, too, is up from last year."
SRI-ethical investing continues to gain ground in the
US. With the unresolved unethical practices in business and finance,
SRI-ethical investing is likely to continue to gain momentum.
FTSE4Good Says Assets Under Management Incorporating
ESG Now $10.1 Trillion. - [COMMENTARY]
"The growth in assets under management that incorporate ESG is hard
to ignore, currently over $10.1 trillion, a four-fold increase since
2006. This growth has been driven by institutional investors, government
regulation, transnational investor-led initiatives, increased retail
investor interest, and heightened external scrutiny, such as NGOs and
the media." Well done FTSE4Good on your 10th anniversary! Their
report is a useful read for all ethical investors.
41% Of Canadians Prefer An Ethical Portfolio, Even If It Delivers Lower Returns. - [COMMENTARY] "We asked respondents to review three types of portfolios: one that was more ethical with a lower return (Portfolio 1), one with lower ethics and a higher return (Portfolio 3), and another balanced between the two (Portfolio 2). Overall, Canadians were fairly split between Portfolio 1 (41%) and Portfolio 2 (46%), with slightly more Canadians choosing the balanced investment option. Only 13% chose more money over less ethical behavior."
It is clear the majority of Canadians continue to desire
ethical investments. In practice though, not many ’follow what they
preach.’ So there is still a big job to actualize their desire with what
they actually invest in.
UK Charities Ethical Investing Assets Lower. - [COMMENTARY] "A survey into the financial management of 64 charities with an annual income over £1m has found that those charities have reduced their ethical and socially responsible investments from one-third to one-fifth."
The reason for this, apparently, is that the fund managers believe they will get lower returns from ethical investments. Quite likely the UK charities are under enormous financial pressure and forcing their fund managers into looking at short term, frequently ’non-ethical’ assets, for relatively quick gains. Such short sightedness is very sad. There are recycles to all investment classes and styles, and ethical investments over the long term have been shown to be as profitable as their conventional counterparts.
This also indicates to me a weak moral attitude in UK
Potential Opportunities In Water Industry.
- [COMMENTARY] "At this year’s H2O
Global Water Summit in Toronto, Canada, two hundred of the world’s
leading water companies and authorities gathered to assess the latest
market developments. The event provided a telling barometer of
opportunities and challenges in the water industry." Issues and even
investment opportunities in everything ’water’ might surpass that of
energy by 2025. One can reduce energy usage. But you cannot live without
Corporate Sustainability Spending Could Rise 50-100% By
2013, Says Verdantix. - [COMMENTARY]
"Firms in the U.S., U.K., Australia and Canada with $1 billion-plus
revenue will dole out roughly $60 billion in 2013 on workers, equipment
or implementation of strategies directly related to sustainability,
climate change, carbon management or energy efficiency." Firms are
finally grasping the fact that sustainability can mean big savings, thus
SRI Poised For Evolution, Bank Says.
- [COMMENTARY] "Socially responsible investing has
undergone a ’spectacular’ transformation in recent years and is ready to
move to the next level, according to a report from German commercial
bank WestLB. The 120-page report states that the SRI market continues to
grow strongly in both absolute and relative terms." This is a great
report for all investors.
Nike’s Sustainability Report Wins Top Ceres-ACCA Award. - [COMMENTARY] "Nike′s report addresses the new context within which business must operate—one with a rising global population, decreasing natural resources, and an unstable climate—and reveals how Nike, in an effort to take a competitive advantage, is shifting to a more sustainable business model."
Congratulations to Nike! There are
other winners too that ethical investors might want to look at.
Installed Global Renewable Energy Output Now Greater
Than Nuclear. - [COMMENTARY] "For
the first time in 2010 total renewable energy from three specific
sources - wind turbines, biomass and waste-to-energy plants, and solar
power - exceeded the total global nuclear power generation capacity."
This is great news, especially when you consider how enormously
subsidized is nuclear. I’ve read that for every dollar of government
subsidy for renewables, governments give $40 to nuclear! Eliminate all
subsidies to nuclear, oil and gas, etc., and renewables will reign
Canadian SRI Assets Hold Steady. -
[COMMENTARY] "Socially responsible assets in Canada
dropped marginally to $531 billion as of June 30, 2010, compared with
$579 billion in 2008, according to the biennial SRI review, released
today by the Social Investment Organization. However, SRI still
represents about one-fifth of total Canadian assets under management,
about the same level as 2008." Most SRI assets in Canada are held by
pension funds. A substantial breakthrough in the retail market would be
really great though.
Ernst & Young Report Shows Increasing Number Of CSR
Related Shareholder Resolutions. - [COMMENTARY]
"The report tracks a nearly 40 percent growth in the number
of environmental and social sustainability resolutions filed since 2000,
and projects that fully half of all shareholder resolutions filed in
2011 will be CSR-related." These resolutions are also gaining
increased shareholder support. And that is good news too!
Latest Commentaries by Ron Robins on Alrroya.com
Does Corporate Social Responsibility Increase Profits? May 12, 2011.
Proposed Healthcare Surgery Won′t Heal America, May 18, 2011.
ESG Yields Profits, May 24, 2011.
Force of Nature: The Unlikely Story of Wal-Mart’s Green Revolution, by Edward Humes, HarperBusiness 2011.
Note: Articles are linked to the original source. Some sites may require registration, and may, or may not, archive stories. All links were active at the time of publication.
Disclaimer: Neither The Soul Investor nor Ron Robins make investment recommendations. Nothing in this newsletter should be interpreted as a recommendation or solicitation to buy/sell any securities or investments. The Soul Investor is a source of general information and resources for spiritual investing, ethical investing, and socially responsible investing (SRI). Investors should consider their actions thoroughly and consult their professional advisers prior to taking any investment action. The Soul Investor does not necessarily agree with the opinions expressed in articles in its newsletter or offered on the web pages to which it might be linked. Such opinions are the responsibility of the writers themselves. Furthermore, The Soul Investor does not offer or provide any warranties, representations, guarantees, implied or otherwise, as to the accuracy, legality, copyright compliance, timeliness or usefulness of the information, materials or services in this e-newsletter, or other sites, to which it might be linked. Also, Mr. Ron Robins is not an investment advisor, nor is he licensed with any professional investment related body, and thus is not able to, nor does he make, any investment recommendations.
The Soul Investor is a publication of Investing for the Soul, a registered business name in Ontario, Canada. Copyright © 2011 Ron Robins. All rights reserved.