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Ethical Investing News/Commentaries:
Oct. 2011 |
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Commentaries by Ron
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HP, Apple, Intel & Motorola Ranked Best Tech
Companies In Managing Supply Chain ESG Issues.
- [COMMENTARY]
"The study [by Det Norsk Veritas] looked at 26
companies in the IT industry, each of which
submitted Global Reporting Initiative (GRI)-compliant
sustainability reports detailing their supply chain
activity. Fourteen of those companies were members
of the Electronics Industry Citizenship Coalition (EICC),
an industry trade group dedicated to social and
environmental responsibility."
Investors might recall that in 2010, 14 workers
committed suicide at Foxconn's Chinese plants making
parts for the above-mentioned companies. Their
suicides were related to working conditions at Foxconn's plants. It's great that these high-tech
companies are now leading the charge to improve the
working conditions for workers at these and other
similar plants.
HP, Apple Show Strong Leadership on Supply Chain
Transparency, by Matthew Wheeland, October 28,
2011, GreenBiz, USA.
Canadians View SRIs As Futuristic & Win-Win
For Individuals & Society, Says Ipsos Survey.
- [COMMENTARY]
"the majority (54%) of Canadians who have discussed
socially responsible investments (SRIs) with their
advisor raised the topic themselves... Canadian
investors are generally favourable towards SRI. A
third (32%) said they are 'very' or 'somewhat'
interested. [Additionally] 55 per cent indicated
that they would consider SRI if the return was 'as
good or better' than other investments... The
majority of investors surveyed view SRIs as
'futuristic' (78%) and 'a win-win for the individual
and society' (77%)." Again,
it's clear that it is financial and
investment advisors who are restricting the growth
of ethical investing.
Socially responsible investing consumer driven:
Ipsos survey, press release, October 27, 2011,
Ipsos Reid/Standard Life, Canada.
Boston Common Asset Management (US), Natcan
Investment Management (Canada) & F&C Investments
(UK) Are Among World Finance Magazine 2011 ESG
Awards Winners.
- [COMMENTARY]
"The winners World Finance's ESG Awards 2011
represent the companies who have augmented their
business positions through their dedication to ESG
practices. Their commitment to making principled
investments that support people and the environment
has significantly improved their standing among
their competitors and allowed them to take advantage
of opportunities gifted by their committed ESG
position. World Finance congratulates them all."
Most developed countries have a winner.
World Finance 2011 ESG Awards, October 27, World
Finance, UK.
76% Of Americans Worried About "nation’s lack
of progress on energy efficiency and development of
renewable energy sources," Says University Of Texas
Poll.
- [COMMENTARY]
"The vast majority of Americans believe the country
is headed in the wrong direction when it comes to
energy policy and want more leadership when it comes
to dealing with future needs, according to a new
poll. In survey of 3,406 Americans conducted by
researchers at the University of Texas at Austin,
less than 14 percent of respondents said they think
the country is headed in the right direction on
energy... "
US polls continually show how totally
out-of-touch is the US Congress with how its
electorate thinks. And this poll can only bolster
the support for renewable energy supporters and for
ethical investment.
Americans Think U.S. Headed Wrong Way on Energy, New
Poll Finds, October 20, 2011, Environment 360,
Yale University, USA.
Sustainable & Responsible Investing Assets In
"Alternative Investments" Jumped 16 Percent In 2010.
- [COMMENTARY]
"The latest sign that sustainable and responsible
investing (SRI) is increasingly entrenched in the
mainstream of the financial world: It now is making
major strides in the world of 'alternative
investing,' according to a new report prepared for
the US SIF Foundation by the Center for Social
Philanthropy at the Tellus Institute. The US SIF
Foundation is affiliated with US SIF – The Forum for
Sustainable and Responsible Investment." This is
more evidence that socially responsible, sustainable
and ethical investments continue to make good gains
in all asset classes everywhere.
Study: “Alternative Investment” Assets in
Sustainable & Responsible Investing Jumped 16
Percent in 2010, press release, October 26,
2011, US SIF/Center for Social Philanthropy at
Tellus Institute, USA.
New App Measures Supplier Carbon & Water
Footprint.
- [COMMENTARY]
"Rosslyn Analytics, the leader in one-click data
discovery and business intelligence software, and
Trucost today launched the world's first
self-service sustainability app which enables
procurement, supply chain and corporate social
responsibility (CSR) departments to calculate and
manage the carbon and water footprint of every
supplier in their supply chain across the world in
seconds." This app could be a real boon not only
for companies, but also for investment analysts,
fund managers and even for investors desirous of
doing some real homework. Trucost is a highly
respected name in corporate carbon information and
analysis.
Rosslyn Analytics and Trucost Launch World's First
Sustainable Procurement App, press release,
October 26, 2011, Trucost/Rosslyn Analytics, UK/USA.
Kaiser, KPMG, State Street Are Top Firms For
Green IT.
- [COMMENTARY]
"One of the reasons that green IT is a core focus
area for us -- and why IT is central to the VERGE
future -- is the broad range and deep impact of the
many types of green IT practices. The annual list of
top green IT users from Computerworld magazine,
published this morning, reinforces that point, with
profiles of 12 firms that have done everything from
tried-and-true data center virtualization programs
to managing employee travel to creating an entirely
new data center energy-management metric." It is
recognized that IT energy consumption is huge, so
it's great that companies strive to reduce it. And
that the best ones are honoured.
Kaiser, KPMG, State Street Named Top Firms for Green
IT, by Matthew Wheeland, October 24, 2011,
GreenBiz, USA.
South Korean Sustainable Companies Outperform.
- [COMMENTARY]
"The 'SolA Sustainable 50' has consistently
outperformed the markets every year since inception
in 2007 by margins that exclude statistical
coincidence. The portfolio has also outperformed ESG
benchmarks ( DJSI Korea and KRX SRI), indicating
that sustainable investment returns depend on the
quality of the research and methodology."
Ron Robins Interviewed About SRI On Financial
Impact Factor Radio (FIFR).
- [COMMENTARY]
"The main problem as Mr. Robins pointed out was the
lack of recommendation [of SRI] by the financial
services industry." This 60-minute
programme is one of the best of its type. The
attentive and knowledgeable hosts were Paul Petillo
and Dave Kittredge.
On the Radio with Ron Robins, October 24, 2011,
Financial Impact Factor Radio, USA.
New Meta-Analysis Of SRI Studies Says SRI &
'Conventional' Returns Are Similar.
- [COMMENTARY]
"21 academic studies are reviewed. Seven studies
conclude that SRI have similar performance relative
to their conventional peers. Five studies report
that SRI outperforms conventional investment. Three
studies find that SRI generates inferior performance
relative to its conventional peers. Finally, six
studies report mixed results. We can conclude that
results point in all different directions, and that
there is no clear link between SRI and financial
performance. Our results implicates that it would be
unwise to make general statements about the
performance of SRI based on only one or a few
studies."
The term SRI is a huge 'catch-all.' I believe
that SRI studies should be sub-divided and studied
in a thematic way. For instance, those that are
purely 'ethical' might be divided from those where
ESG or sustainability dominates. I suspect that purely ESG studies
might have an edge on returns too. What do you think?
The Performance of Socially Responsible Investment -
A Review of Scholarly Studies Published 2008-2010,
by Emma Sjöström, October 17, 2011, Stockholm School
of Economics; Nuwa AB, Sweden.
Harvard Researchers Report On Relevance Of
Corporate Nonfinancial Information To Investors,
Others.
- [COMMENTARY]
"During the past two decades, there have been many
ideas for improving business reporting of
nonfinancial information such as on a company's
environmental, social, and governance (ESG)
performance. Using data from Bloomberg, authors
Robert G. Eccles, Michael P. Krzus, and George
Serafeim provide insights into market interest in
nonfinancial information at a level of granularity
not available until now. They identify exactly what
information is of greatest interest, contrasting
both the global and U.S. market across the full
spectrum of ESG information and for each component
of ESG, as well as Carbon Disclosure Project
metrics."
Some key findings, "there is a large market
interest in the level of a company’s degree of
transparency around ESG performance and policies...
at the aggregate market level, interest in
Environmental and Governance information is greater
than interest in Social information... the highest
market interest is shown for greenhouse gas (GHG)
emissions and other climate change data, such as CO2
emissions. However, this is not true for the US
market where the interest in these data is very
low... "
This is an interesting read, though I believe
that for most of us engaged in ethical investing
these findings aren't revolutionary. However, it's
good to see the data back-up what we believe to be
true.
Market Interest in Nonfinancial Information, by
Robert G. Eccles, Michael P. Krzus, and George
Serafeim, Harvard Business School, USA.
Global Cleantech 100 2011 List Now Available.
- [COMMENTARY] This list is always
useful to review, especially for ethical investors.
You need to register to read their full report.
Registration is free.
Global Cleantech 100 2011 List, Cleantech Group,
US/UK.
Companies Using The Global Reporting
Initiative (GRI) Framework For CSR Reporting
Experience Reputational Benefits.
- [COMMENTARY] "From
our analysis we concluded that by their reporting
according to the GRI Framework, companies could
expect to rank higher in rankings and ratings, and
have more opportunity to be recognized by the third
parties." This study makes the case for
companies to use the GRI and to perform well on it.
You will need to register--which is free--to see the
study.
Corporate ESG/Sustainability Reporting. Does it
matter? October 21, 2011, Governance &
Accountability Institute, Inc., USA.
Campbell's, GE, HP, Nike Are Among Top
Green-Minded Firms, Says Report.
- [COMMENTARY]
"A new report from Two Tomorrows tries to pierce the
veil of greenwash claims and identify which
companies are best adding value and stability to
their brands with their sustainability efforts --
and which are likely to disappoint in the long-term.
The Tomorrow's Value Rating 2011 report from Two
Tomorrows looks at the sustainability performance of
92 companies and ranks them into eight groups. Only
11 firms made the top-level cut to a triple-A
rating."
I'm increasingly seeing studies that try to wean
out the greenwash in corporate products, services
and activities. This study is along those lines.
Such studies are always useful for ethical investors
to read, though one must always be aware of their
biases and financial backers.
Campbell's, GE, HP, Nike Rank Among Top for
Green-Minded Firms, by Matthew Wheeland, October
19, 2011, GreenBiz, USA.
285 Investors With $20 Tn In Assets Demand New
Carbon Emissions Treaty.
- [COMMENTARY]
"Large investors urged governments on Wednesday to
sign a binding treaty on carbon emissions at the
U.N. climate talks in South Africa in December. A
group of 285 investors representing more than $20
trillion (€14.62 trillion) in assets say only
legally enforceable carbon limits can spur the level
of investment needed to keep temperatures from
rising further. The group includes three major
investor networks in the U.S., Europe, Australia and
New Zealand." Everyone knows that the world has
to move forward on carbon emissions' controls. For
companies, the need is stultifying. Without a common
framework it is difficult for companies to plan
ahead. This, therefore, is bad for investors, and
particularly for ethical investors.
Major investors with more than $20 trillion in
assets seek new treaty on carbon emissions, AP,
October 19, 2011, Washington Post, USA.
Ford, Toyota and Volkswagen Have Best ESG
Practices, Says Calvert Investments
Study.
- [COMMENTARY]
"Three automakers - Toyota Motor Corporation, Ford
Motor Company and Volkswagen AG - were recognized
today by U.S. sustainable and responsible investment
(SRI) firm Calvert Investments for their leadership
in environmental policies and practices, human
rights and supply chain impacts through the
development of strong workplace policies and
programs, and leading product safety policies and
practices, respectively." This is good news for
these companies. Furthermore, it adds impetus to all
auto companies to focus on ESG issues since
investors are taking increasing notice of them.
Ford, Toyota and Volkswagen Recognized for Best ESG
Practices, press release, October 17, 2011, USA.
Offshore Wind Investments Grow To New Record.
- [COMMENTARY]
"Investors poured a record $41.8 billion into
utility-scale renewable energy projects in the third
quarter of 2011, driven by a surge in offshore wind,
according to analysis firm Bloomberg New Energy
Finance (BNEF)." Renewable energy is becoming
increasingly cost competitive with fossil-based
fuels. The future is bright for them.
Offshore wind drives record project finance quarter
– BNEF, by Jess McCabe, October 14, 2011,
Environmental Finance, UK.
Ceres Announces New Water Tool For Companies,
Investors.
- [COMMENTARY]
"Against a backdrop of increasing business exposure
to global water supply threats, Ceres today released
a new tool for evaluating those risks – and
opportunities – that both investors and companies
can use as a roadmap to enhanced water stewardship."
We might well see many companies using this tool.
For ethical investors it will be a way to do company
comparisons in ways they have not been able to do
before. Congratulations to Ceres for perfecting this
tool!
Ceres Aqua Gauge: New Tool for Companies, Investors
to Manage Risks of Worldwide Water Supply Pressures,
press release, October 17, 2011, Ceres, USA.
Most Oil & Gas Companies Shunning
Sustainability Goals.
- [COMMENTARY]
"Green Research, a New York-based corporate
sustainability research and advisory firm, today
released its latest benchmark of corporate
environmental sustainability goals, this one
analyzing the oil and gas industry. The study found
that the industry is distinguished by its reluctance
to set specific sustainability goals." This is
not surprising to me as long as the consumer's
thirst for oil continues unabated, then oil and gas
companies have a relatively free reign!
Most Oil and Gas Companies Shunning Sustainability
Goals, by Frank Came, October 18, 2011,
GreenBiz, USA.
IBM, HP, Sprint Take Top Spots In Newsweek's
Latest Green Rankings.
- [COMMENTARY]
"The annual Newsweek Green Rankings, which have
become perhaps the most anticipating green ratings
in the world, are published this morning, bringing a
new methodology to bear, and bringing a few
surprises with it. IBM has moved into the top spot
from its third place finish last year, while
Hewlett-Packard stays in second place. Dell moves
down the list to fifth place after last year's third
place rank, and Sprint moves up to third from sixth
place last year."
Such ranking lists are always interesting, but
you have to know who is ranking them and on what
basis they are ranked. In this case Sustainalytics
is doing the ranking, and this is a company I rate
highly.
IBM, HP, Sprint Take Top Spots in Newsweek's Latest
Green Rankings, by Matthew Wheeland, October 17,
2011, GreenBiz, USA.
UK Financial Advisors Failing To Advise
Investors On Ethical Investments.
- [COMMENTARY]
"New research has revealed that 76% of investors
have never had ethical investment mentioned to them
by their independent financial adviser (IFA)... An
additional 18% of respondents stated that their IFA
had mentioned ethical investing in passing, while
only 6% said their IFA was knowledgeable about the
area."
As I have said repeatedly, financial
advisors--not only in the UK but throughout the
developed world--largely do not know about, or
recommend, ethical investments. This is despite the
fact that the majority of their clients are
interested in hearing more about them. Most
industries could not tolerate such an inconsistency.
It is the 'power' of the advisor in this very uneven
'knowledge' relationship that continually allows
this to happen. It is a problem that financial
regulatory authorities everywhere need to
investigate and act upon!
Ethical investing ignored by IFAs, October 17,
2011, Which UK.
GMI Ratings Says Apollo Group, Comstock
Resources & Discovery Communications Are Among 10 US
Companies That Carry Significant ESG Risks.
- [COMMENTARY]
"The most important investing lesson of the 21st
century is that traditional measures for evaluating
risk are inadequate. Not only inadequate, but too
often misleading and easily manipulated. In just
over a decade, despite comprehensive market and
regulatory responses and reforms, shocks and
scandals have destroyed shareholder value and global
confidence in what were once market leaders." I
agree with their analysis of the problem and
encourage their research. Of course only time will
tell if their analysis proves prescient.
The GMI Risk List, October 2011, GMI Ratings,
USA.
UK's National Ethical Investment Week 2011
Underway.
- [COMMENTARY]
"Sunday marked the start of National Ethical
Investment Week 2011 in the UK and new research from
YouGov, the internet market research company, has
revealed how much the green and ethical investment
market has evolved in recent years. For example,
more UK adults now define 'green and ethical
investment and finance' as a positive investment in
activities that 'benefit society and/or the
environment' rather than the traditional view that
it is about “excluding companies involved in
undesirable practices”. Congratulations to the
UKSIF on their National Ethical Investment Week.
From my media review, the Week is being well
followed!
Green and ethical investment comes of age, by
Penny Shepherd, October 16, 2011, Financial Times,
UK.
38% Of UK Investors Interested In Green Or
Ethical Financial Products Or Services, Says EIRIS.
- [COMMENTARY]
"Increased interest in ethical finance is backed up
by the findings of EIRIS' latest Ipsos MORI national
consumer survey which explores consumer attitudes to
ethical finance in Great Britain. The poll surveyed
1,030 adults and finds that 38% of the British
public with a financial product or service are
interested in green or ethical financial products
and services with more women than men (41% versus
34%) expressing an interest. Of those interested,
90% said they would be likely to switch to a
different provider if it offered green or ethical
investment products."
Let me repeat my earlier comment with regard to
similar findings in the French EIRIS survey:
"Investors want to invest ethically and responsibly,
but financial/investment advisors aren't versed in
how to provide it. Often they aren't interested to
find out either, since they are easily able to
thwart an investor's desire for ethical funds by
simply proclaiming the standard untruth that ethical
funds don't perform well."
UK ethical investment hits record £11.3Bn high,
press release, October 6, 2011, EIRIS, UK.
Baruch Index Of Corporate Political Disclosure
Rates Goldman Sachs Group, Inc. & U.S. Bancorp Among
Most Transparent.
- [COMMENTARY]
"Seven national companies were ranked as top
corporations in political transparency according to
the 2011 Baruch Index of Corporate Political
Disclosure, produced by Baruch College’s Robert
Zicklin Center for Corporate Integrity. 'Top tiered
companies should take pride in their dedication and
efforts with regards to sharing information about
their political activity with their stakeholders and
the general public.' On September 15, 2011, the
Zicklin Center presented the results from The Baruch
Index, which rates the S&P 100 companies from
'transparent' to 'opaque,' with a system of 57 items
measuring corporate political activity at all levels
and branches of government."
Most ethical investors would agree that it is terrifically important that public
companies are completely open and transparent about
their political contributions. The Zicklin Center
needs to be encouraged in this endeavour, even
though some of its findings might be controversial!
Seven Companies Rank among Top Tier in Baruch Index
of Corporate Political Disclosure, press
release, October 11, 2011, Robert Zicklin Center for
Corporate Integrity, USA.
60% Of French Retail Investors Attach
Importance To Environmental, Social & Ethical
Factors.
- [COMMENTARY]
"The EIRIS consumer survey underlines the growing
importance of SRI in France with 60% of survey
respondents saying they attach either ‘great
importance’ or ‘some importance’ to incorporating
environmental, social and ethical issues when
selecting financial products. However, the survey
also identifies a lack of awareness of SRI financial
products as a key barrier to SRI with 64% of
respondents saying they have never heard of an SRI
fund."
It is a remarkably similar situation throughout
the developed world: investors want to invest
ethically and responsibly, but financial/investment
advisors aren't versed in how to provide it. Often
they aren't interested to find out either, since
they are easily able to thwart an investor's desire
for ethical funds by simply proclaiming the standard
untruth that ethical funds don't perform well.
Ethical investment: are the French public
interested? October 6, 2011, EIRIS, UK.
Most Large Canadian Companies Taking
Sustainability Seriously.
- [COMMENTARY]
"More than half of the [Canadian] companies that
responded to the survey said they sell at least some
products or services that help clients reduce
greenhouse-gas emissions. At the same time, more
than 85 per cent said they have a program in place
to reduce their emissions – usually by cutting
energy use in their buildings or plants."
Ethical investors know that the best corporation to
invest in over the long term is one that takes
sustainability seriously. And large Canadian
companies are beginning to get it!
Canadian firms warming to climate-change measures,
by Richard Blackwell, October 12, 2011, The Globe &
Mail, Canada.
Malaysia Gets New Islamic Finance Indices.
- [COMMENTARY]
"Thomson Reuters and Bond Pricing Agency Malaysia
launched a family suite of indices across a range of
Islamic instruments to provide the most transparent
guidelines for investors interested in Malaysia, a
globally accepted Islamic finance hub. The Thomson
Reuters-Bond Pricing Agency (BPA) Malaysia Sukuk and
bond Ringgit indices are based upon market and
industry standards and aimed at investors, money
managers and analysts." Islamic finance will
soon be a $1.5 tn industry and because of some
similarities with ethical finance and investing,
might be of interest to some ethical investors.
Thomson Reuters And Bond Pricing Agency Of Malaysia
Unveil Co-Branded Sukuk And Bond Indices 108 Sukuk
That Will Benefit Malaysian And International
Investors, press release, October 12, 2011,
Thomson Reuters, Malaysia.
Belgium Hosts SRI Week October 17-24, 2011.
Organized by The Belgian Sustainable and
Socially Responsible Investment Forum. See
SRI Week Opening Event - SRI: CONDITIONS FOR SUCCESS.
Investors Should Make Tax An Ethical Issue,
Says Christian Aid.
- [COMMENTARY]
"‘Along with traditional concerns such as
involvement in tobacco, weapons and environmental
issues, a company should also be assessed on its tax
practices,’ says Dr David McNair, Christian Aid’s
Principal Adviser on Economic Justice." The main
thrust of this article refers to companies avoiding
paying taxes in developing countries. Not paying
such taxes is certainly anathema to me.
However, also and related, a few months ago GE
created waves by reporting handsome profits, yet
proclaimed paying relatively little in taxes. Should
companies be penalized for legally minimizing their
tax burdens? Unfortunately, if companies don't
minimize their corporate tax burdens to what is
legally permitted, it might even be possible for
their executives to be sued or fired for
mismanagement by disgruntled shareholders.
Some economists argue that if corporate taxes
were abolished--they make-up about 9% of
US federal taxes--that this could be a major way to
spur job creation!? The issue of corporate taxes is
just as much a political and economic issue as it is
an ethical one.
Investors should make tax an ethical issue,
press release, October 7, 2011, Christian Aid, UK.
Consumer Electronics Companies Lead Ratings of
Corporate Social Responsibility, According to Pike
Research.
- [COMMENTARY]
"Less than 10% of the companies contacted by Pike
Research for an interview related to sustainable
design were willing to talk about their processes.
In addition, many issues integral to a holistic view
of CSR, such as the social and environmental impacts
of the extraction of basic raw materials feedstocks
(e.g., mining of metal ores or refining of crude
oil), remain to be addressed. Regardless, Pike
Research's analysis finds that electronics suppliers
and manufacturers have relatively advanced
understandings of CSR, compared to other sectors,
and that sustainability is evolving from a program
or a process to a corporate culture."
This is interesting research. However, like all
research of this nature one needs to dig deeper to
really understand their parameters, biases and
conclusions. But generally, it's good that such
research is getting done.
Consumer Electronics Companies Lead Ratings of
Corporate Social Responsibility, According to Pike
Research, press release, October 10, 2011, Pike
Research, USA.
"Most Innovative Islamic Investment Bank" Is
Citi, Says The Banker Magazine.
- [COMMENTARY]
"In Islamic finance, The Banker pointed to Citi
having led the first ever exchange, tender and
consent solicitation ever executed in the Sukuk
[Islamic bond] market. The Banker also cited that Citi led the
first Islamic deal ever done in Turkey, a US$100
million issue for Kuveyt Turk Participation Bank."
Considering all Citi's troubles, it's great to see
this huge bank so engaged in Islamic finance--a
system of finance that shares a real kinship with
ethical finance and investing.
Citi Named "Most Innovative" in FX and Islamic
Finance, press release, October 10, 2011, Citi,
UK.
Investment Banking Ethics Studied.
- [COMMENTARY]
"Investment banks are required to train bankers in
"compliance", which ensures a literal obedience to
laws, but put little or no emphasis on ethics. If
investment banks don't start changing the way they
behave, though, regulation will increase and society
will continue to suffer the consequence of bankers'
excesses." This is a useful article for ethical
investors to read. It is by John Reynolds Chairman
of the Church of England Ethical Investment Advisory
Group. He recommends industry 'ethical committees.'
Personally, I believe any approach that doesn't
create an intrinsic, internalized higher values
system, is doomed to failure.
Investment banks need ethics as well as a desire to
make money, by John Reynolds, October 10, 2011,
The Telegraph, UK.
Stock Exchanges Requiring More Stringent
Sustainability Reporting.
- [COMMENTARY] This story offers a
good global overview of what stock exchanges are
doing concerning sustainability reporting for listed
companies.
Stocking up on sustainability information, News
2011, Global Reporting Initiative, The Netherlands.
Alberta Is Home To Tar Sands Oil. It's $15 Bn
Heritage Savings Trust Fund Favours Ethical Investments.
- [COMMENTARY]
"Alberta recently dumped its direct investments in
numerous companies that Norway's government deems
unethical, says the head of the Crown corporation
that manages the Alberta Heritage Savings Trust
Fund." For many environmentalists, this action
is surprising. Nonetheless, ethical investors can
only applaud such a move.
Alta. dumps investments in companies deemed
unethical by Norway, by Andrea Sands, October 8,
2011, Postmedia News, Canada.
2011 Moskowitz Prize Awarded To Researcher Who
Finds Cost Of Capital Lower For Companies With Good
CSR!
- [COMMENTARY]
"The winning paper, announced tonight at SRI in the
Rockies, finds that cost of equity capital is
lowered for companies with good corporate social
responsibility practices... Every year since 1996,
the Moskowitz Prize for Socially Responsible
Investing, awarded for outstanding quantitative
research in sustainable investing, is announced at
the annual SRI in the Rockies conference, held this
year in New Orleans." Ethical investors have
long believed this to be true. Now this study should
spur even greater corporate emphasis on CSR. The
study is titled: "Does corporate social
responsibility affect the cost of capital?"
Congratulations to the study's authors: Sadok El
Ghoul, Omrane Guedhami, Chuck C. Y. Kwok, and Dev R.
Mishra.
Winner of 2011 Moskowitz Prize for Socially
Responsible Investing is Announced, by Robert
Kropp, October 3, 2011, SocialFunds, USA.
European Pension Plans Embrace SR-Ethical
Investing.
- [COMMENTARY]
"More than half (56%) of EU corporate pension funds
now have an SRI policy in place while a quarter of
those without intend to implement one within the
next 12 months, research shows. Eurosif's 2011
Corporate Pension Funds Study of 169 respondents
from 12 EU member states found 60% believed ESG
factors affect pension funds' long-term performance,
while 66% felt having an SRI policy was part of
their fiduciary duty." The evidence continues to
mount that mainstream investment managers are
incorporating ESG. It's continuing good news for
ethical investors.
European plans embrace SRI, by Chris Panteli,
October 3, 2011, Global Pensions, UK.
Governments Blamed For Holding Back Corporate
Investments On Sustainability, Finds Deloitte Study.
- [COMMENTARY]
"'Governments around the world have struggled with
finding the right level of regulation and their role
in facilitating sustainable business has proven
fraught with uncertainty.' [Quote from Fadi Sidani,
partner in charge for Enterprise Risk Services at
Deloitte in the Middle East.]" I'm sure that
most ethical investors would concur with this
finding. Failing a sudden increase in collective
consciousness and agreement on what to do, it might
yet take, most unfortunately, an environmental
tragedy to wake-up people and their governments as
to the magnitude of what needs to be done.
Deloitte: companies around the world cautious about
investing in sustainability initiatives, October
1, 2011, AMEinfo.com, UAE.
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