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Morgan Stanley Embraces Impact Investing.
- [COMMENTARY]
"Morgan Stanley, a global financial services firm
with 1500 offices around the world, just announced
they were offering a new set of investment options
for clients interested in the triple bottom line.
The 'Investing with Impact Platform' is the first,
to my knowledge, impact investment portfolio option
for investors offered by one of the 'too big to
fail' banks that received a bailout from the U.S.
government."
This is important news as it demonstrates that
large mainstream US financial institutions are
beginning to recognize the importance of investing
in companies that specifically incorporate ESG into
their core activities.
Impact Investing Goes Mainstream–Morgan Stanley
Jumps on Board, by Scott Cooney, May 15, 2012,
Triple Pundit, USA.
New Human Rights Based ETF Planned.
- [COMMENTARY]
"The iShares Human Rights Index Fund takes a
different approach to the category of SRI funds. The
underlying index aims to exclude companies that
provide material support for controversial regimes
or governments that are subject to widespread
sanctions based on human rights violations. At this
time, governments in three countries—Sudan, Iran and
Burma—meet those standards, according to MSCI, which
created the index for BlackRock in November 2011."
Should it be launched, it will be most
interesting to see how this fund fares. One probable
premise of the fund is that companies engaged with
such regimes might see relatively lower stock
prices. Hence, by avoiding such companies, this fund
could benefit. Perhaps though, the main reason this
fund could succeed is that from an ethical
perspective it simply avoids such problem companies.
IShares files to launch human rights ETF, by
Virginia Munger Kahn, May 11, 2012, FA News, USA.
Businesses Say They Are Better At Delivering
Social
Change Than Charities.
- [COMMENTARY]
"More than 90 per cent of businesses said they were
equally or better equipped than charities to deliver
social change, according to a snapshot survey." This is an interesting perspective. Are the
businesses just being pompous or are they simply
being factual?
With the growth of CSR there could be some
substance behind this claim.
Most businesses in a survey say they are better
equipped than charities to deliver social change,
by Chloe Stothart, May 10, 2012, Third Sector, UK.
Prior To London Olympics, Religious & Ethical
Investors Ask Corporations To Step Up
Anti-Trafficking & Slavery Efforts.
- [COMMENTARY]
"Christian Brothers Investment Services (CBIS), a
leader in socially responsible investing, and a
coalition of U.S. and U.K. investors and NGOs have
united to call on corporations to strengthen their
focus against human trafficking and modern slavery
in advance of the 2012 Summer Olympic Games taking
place in London from July 27 to August 12. The
initiative focuses on the London tourism industry
and key sponsors of the Olympic Games that may be at
a higher risk for on-premise child and labor
trafficking and that have the potential to help
raise public awareness of these crimes."
At first glance, it might be difficult to link
human trafficking and slavery to the Olympics.
Nonetheless, there's never not a good time to raise
those issues.
In Advance of London Olympics, U.S. and U.K.
Investors Ask Corporations to Step Up
Anti-Trafficking and Slavery Efforts, press
release, May 8, 2012, Christian Brothers Investment
Services (CBIS), Interfaith Center on Corporate
Responsibility (ICCR), The Ecumenical Council for
Corporate Responsibility (ECCR), and Fair Pensions,
UK/USA.
EIRIS Reports On The Most Sustainable
Companies.
- [COMMENTARY]
"This research paper provides a global snapshot of
corporate sustainability performance on the 2063
companies from the FTSE All World Developed (AWD)
Index. It presents the 10 current sustainability
leaders as well as insight on the sustainability
performance of 50 of the world’s largest companies
(by market cap). Our analysis reveals some
surprising differences in the extent to which
leading companies are prioritising and responding to
sustainability."
EIRIS is one to the most respected organizations
in the ESG-ethical analyst space. This is worth the read
for any SR-ethical investor.
UK and continental European companies are
outstripping their US and Asian counterparts,
according to a EIRIS' latest report, &
EIRIS Sustainability Report, April 2012, EIRIS,
May 1, 2012, UK.
2012 Sustainability Leaders Survey. Rankings &
How They're Assessed.
- [COMMENTARY]
"The 2012 Sustainability Leaders Survey... asked
respondents in February to name up to three specific
companies that they consider to be leaders in
integrating sustainability into their business
strategy. Unilever, which launched its Sustainable
Living Plan in late 2010, was mentioned most
frequently for the second year in a row, while
Interface was the next most frequently mentioned,
followed by GE, Patagonia, and Walmart... A number
of criticisms are routinely levelled at the poll."
This is a good review of what's required to
understand the various methodologies of these polls.
What puts companies on top of the Sustainability
Leadership list? By Eric Whan, May 4, 2012,
GreenBiz, USA.
MSCI, Barclays Launching ‘ESG’ Bond Indexes.
- [COMMENTARY]
"The so-called Environmental, Social ' Governance (ESG)
fixed-income indexes, which will be co-branded,
cater to asset managers and owners who need to
integrate ESG mandates into their fixed-income
investments, the companies said in a joint press
release. The indexes could eventually be used to
benchmark ETFs." This is good news. We have many
SR-ethical equity investing raters, but few on the
debt side.
MSCI, Barclays Plan ‘ESG’ Bond Indexes, by
Cinthia Murphy, May 4, 2012, IndexUniverse.com, USA.
Most US Companies Falling Short On
Sustainability, says Ceres.
- [COMMENTARY]
"In the first major assessment of progress on a
unique Ceres Roadmap to corporate sustainability
released two years ago, Ceres and global research
and analysis firm Sustainalytics today released 'The
Road to 2020: Corporate Progress on the Ceres
Roadmap for Sustainability.' The findings - based on
an assessment of how 600 U.S. companies are
responding to environmental and social challenges
such as climate change, water scarcity and supply
chain conditions – show individual examples of
leadership but significant need for overall
improvement."
The results are unsurprising for anyone. However,
as investors realize that companies with strong ESG/sustainability
programs outperform financially, companies will have
to cater to investor demands for a strong ESG/sustainability
focus.
New Ceres/Sustainalytics Report Shows Most U.S.
Companies Falling Short on Sustainability, press
release, April 27, 2012, Ceres, USA.
US Churches Increasingly Divesting Bank
Stocks.
- [COMMENTARY] "...religious congregations have withdrawn about $40
million nationwide from the country's largest banks,
including Bank of America, JP Morgan Chase, Wells
Fargo and Citigroup, said Tim Lillienthal, lead
organizer with the PICO National Network, the
largest faith-based organizing network in the United
States." It's a movement that could grow. The
churches have many complaints against the banks
ranging from home foreclosure misdeeds to excessive
executive pay.
Growing divestment campaign among churches targets
biggest U.S. banks, by Dennis Sadowski, April
27, 2012, Catholic News Service, USA.
Walmart Investors Voice Deep Concerns Over
Bribery Allegations.
- [COMMENTARY]
"Members of the Interfaith Center on Corporate
Responsibility (ICCR), a coalition of faith-based
and responsible investors that have been actively
engaging Walmart on social, environmental, and
governance issues are dismayed by recent reports in
the New York Times alleging systemic bribery and
corruption to facilitate the rapid expansion of
their retail operations in Mexico."
For a company that's trying to make it to the
forefront of CSR, if proven true, this could
seriously erode what little support the company
presently has among ethical investors.
Walmart Investors Voice Deep Concerns over Bribery
Allegations, press release, April 25, 2012, ICCR,
USA.
UK Investors With £1.5 Trillion Of Investments
Rally Against Excessive Pay.
- [COMMENTARY]
"A coalition of pension funds and asset managers,
who together control more than £1.5 trillion of
investments, hits out at 'disproportionate' rises in
bonuses and calls for companies to 'claw back'
unwarranted payouts... [They include:]...
Allianz Global Investors... two Swedish state
pension funds with more than £40 billion in funds
under management together, the City group F&C Asset
Management, a clutch of ethical investment funds and
the Local Authority Pension Fund Forum, whose
members control more than £100 billion in funds, and
the Church of England Pensions Board." Finally,
these groups are standing together to fight
excessive management compensation.
City funds prepare assault on excessive executive
pay, by John Bingham, April 23, 2012, The
Telegraph, UK.
2012 CSR Awards Given At Philippine Event.
- [COMMENTARY]
"Thirteen companies from China, India, Philippines,
Malaysia, Indonesia and Singapore were recognized
for their outstanding corporate social
responsibility initiatives programs and services at
the 4th Annual Global CSR Awards 2012 held in
conjunction with The Global CSR 2012 Summit held on
19th April 2012 at the Shangri-La hotel, Boracay,
Philippines."
Awards given mostly to Asian subsidiaries of
multi-nationals. It's great to see Asia getting
meaningfully engaged in CSR.
Global CSR Awards 2012 - Top Organisations from
China, India, Indonesia, Malaysia, Philippines and
Singapore Honoured, press release, April 21,
2012, Global CSR Summit 2012 Philippines,
Philippines.
Canada Promoting Board Diversity.
- [COMMENTARY]
"The Canadian Board Diversity Council (CBDC)
announced today it is launching Canada’s first ever
database of diverse candidates for board of director
positions in Canada’s largest 500 organizations. The
new initiative, Diversity 50, supports the Council’s
mandate to increase representation of candidates who
reflect the diversity of the broader Canadian
population."
For multinational companies, board diversity
should be a given so as to optimize corporate
performance in multi-lingual, multi-cultural
markets. Yet that is often not the case. This is a
good socially responsible initiative by Canada that
is also likely to benefit corporate performance.
CBDC
Launches Canada-First Diversity 50 Database of Board
Candidates, press release, April 19, 2012,
Canadian Board Diversity Council, Canada.
Swiss Sustainable Investment Holdings
'Resilient.'
- [COMMENTARY]
"Sustainable investment volumes in Switzerland
remaining steady at around 42 billion Swiss francs /
Institutional investors’ share of the market rising
/ Integration of sustainability into institutional
asset management gaining in significance / Active
engagement playing an increasingly important role."
Slowly, but surely, sustainable investing makes
gains.
Annual review shows sustainable investments in
Switzerland resilient despite difficult market
conditions, press release, April 18, 2012, by
onValues and the Swiss Sustainable Investment Forum,
FNG Switzerland, Switzerland.
'Say On Pay' Stockholder Vote Rebukes Citi
CEO's Pay Package.
- [COMMENTARY]
"In a stinging rebuke, Citigroup shareholders
rebuffed on Tuesday the bank’s $15 million pay
package for its chief executive, Vikram S. Pandit,
marking the first time that stock owners have united
in opposition to outsized compensation at a
financial giant." Finally, it's happening! The
outsized compensation packages for financial
industry executives are being scrutinized
by stockholders as never before. This could be the
beginning of a trend that might influence the entire
financial industry. I hope so.
Citigroup’s Chief Rebuffed on Pay by Shareholders,
by Jessica Silver-Greenberg and Nelson D. Schwartz,
April 17, 2012, The New York Times, USA.
Global Green Energy Investments Fall.
- [COMMENTARY]
"Global investment in green energy fell sharply in
the first three months of 2012 as European financial
woes, upcoming U.S. elections and fears of declining
federal support fed a 'destabilizing uncertainty,' a
report unveiled Thursday finds. New financial
investment fell 28 percent from the prior quarter to
$27 billion, according to Bloomberg New Energy
Finance, which called the first quarter 2012 tally
'the weakest since the depths of the financial
crisis' in early 2009." If oil prices continue
to climb, green energy investments could still
recover.
Global green-energy investment drops, by Ben
Geman, April 12, 2012, The Hill, USA.
UK Banks & Insurers Blacklist Cluster Bomb
Companies.
- [COMMENTARY]
"The Guardian has learned that major firms such as
Lloyds Banking Group (through its investment arm
Scottish Widows), Aviva, the UK's largest insurer,
and the Co-op have imposed a blanket ban on holding
shares in companies that make or supply cluster
munitions, purging them from nearly all their share
portfolios. Royal Bank of Scotland has banned all
new lending to the same companies, and is now
reviewing its defence industry shareholdings."
It seems that some financial institutions are
taking a higher ethical stance. Perhaps many more
will follow? Let's hope so. It's good news for
ethical investors and investments.
UK banks and insurers blacklist cluster bomb
manufacturers, by Severin Carrell, April 9,
2012, The Guardian, UK.
Why Businesses Aren't Trusted.
- [COMMENTARY]
" ...trust appears to be increasing in value to our
clients' businesses at the same time as it is
becoming more elusive. Trust -- or the absence of it
-- is having an ever-greater impact on the things
that businesses care about such as such as brand
equity, customer loyalty and market share,
propensity for collaboration opportunities and the
attraction and retention of talent. Time and again,
when we look into what drives the success of our
clients' businesses, trust is at the heart of it.
And yet the corporate world as a whole continues to
suffer from a chronic trust deficit."
When societies and individuals within those
societies demonstrate caring attitudes towards each
other, trust can grow. When the rich grow richer at the expense of the less fortunate, distrust
grows. It is in the interests of the rich to
demonstrate they care for everyone's welfare. It
requires a change in consciousness.
Why businesses suffer from a trust gap, by Sam
Mountford, April 5, 2012, GreenBiz, USA.
HP, Intel & GE Create Fund To Boost
Conflict-Free Minerals.
- [COMMENTARY]
"A U.S. law requiring companies to disclose if they
source key minerals from conflict-torn areas has lit
a fire under businesses to trace their supply chains
and find conflict-free supplies. But with other
countries also pressuring companies to eliminate
conflict materials, there's more demand for
conflict-free minerals than supply." It's a
shame that it took a new US law for companies to get
behind this, but it's a good start. However, will
Chinese and Russian companies participate as well?
HP, Intel and GE start fund to boost conflict-free
minerals, by Jonathan Bardelline, April 4, 2012,
GreenBiz, USA.
Social Investment Organizations To Produce
Global Ethical Investing Data.
- [COMMENTARY]
"Sustainable investment membership organisations in
major markets have agreed to join forces to create a
trailblazing report on the global scope of
sustainable and responsible investment. For more
than a decade, these regional bodies have produced
research reports, generally on a biennial schedule,
on the trends in sustainable and responsible
investing within their own markets. The release of
this harmonized global 'Trends' report, the first
ever, is scheduled for December 2012."
I'm happy to see this. I hope too, that they'll
publish data in relation to global non-SR-ethical
investing equity and bond market assets. That way,
investors can assess exactly how large and
proportional are SR-ethical investing assets in
relation to the universe of stock and bond
investments.
Global collaboration on sustainable investment
advances as leadership of sustainable investment
organizations meet in London, press release, April 2, 2012, UKSIF, UK.
Eiris Says European Companies Lead, Americans
Lag, In ESG.
- [COMMENTARY]
"UK and continental European companies have
outstripped their US and Asian counterparts in
taking a 'socially responsible' approach to their
business and reducing risk, according to findings
based on more than 2,500 FTSE global companies by
Eiris, the responsible investment research
specialist. A fifth of UK companies scored A (the
highest of five grades) based on environmental,
social and governance issues, followed by 12 per
cent of mainland European ones. But only 2 per cent
of US companies and 1 per cent of Asian ones made
the top grade in Eiris’s recently launched Global
Sustainability Ratings."
These are significant results and may encourage
ethical investors to review some of their holdings
in US companies.
European groups lead way on ESG, by Ruth
Sullivan, April 1, 2012, Financial Times, UK.
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