RIAA WINDOW – Issue 19 | Responsible Investment Association Australasia

MSCI ESG research launches new ESG manager platform

MSCI recently launched a new integrated platform designed to provide asset managers and owners with an integrated suite of tools to efficiently manage research, analysis and compliance tasks across the spectrum of ESG factors. MSCI is also introducing MSCI ESG Impact Monitor. This product allows investors to analyse a companys significant social and environmental impacts and its ability to manage those impacts. Included are assessments of major ESG controversies and violations of global norms and conventions such as the UN Global Compact and ILO Core Conventions.

First international study on investors climate change strategies released

The Institutional Investors Group on Climate Change (IIGCC), the North American Investor Network on Climate Risk (INCR) and Australia/New Zealand Investor Group on Climate Change (IGCC) have recently jointly published a report detailing the investment practices of asset managers, such as primary fund managers, and asset owners, such as pension funds, towards climate change issues. Conducted by Mercer, the report is based on survey responses from 44 asset owners and 46 asset managers with collective assets totalling more than $12trillion. The majority of investors view climate change as a material investment risk and/or opportunity and almost all respondents report on their climate change related activities.

Bloomberg sustainability survey for members of global major indices

Bloomberg provides ESG data on more than 100 key performance indicators for over 4,600 publically-listed companies globally, and strives to increase the coverage on a daily basis. They are currently conducting the sustainability survey to over 2,000 members of major indices. If your company has received Bloomberg Sustainability Survey email, please disclose as much available data points as possible. The disclosure allows your company to present the ESG data required by analysts and investors through the Bloomberg platform.

BlackRock partnering with MSCI on ex-controversial weapons indexes

Nine new MSCI ESG Indices have been developed for use by institutional investors, including pension funds, and universal owners who wish to avoid investments in cluster bombs, landmines, chemical, biological, and depleted uranium weapons. The indices will form the basis of a new series of BlackRock index funds.

BNP partner, Impax PM, receives AAA rating

Congratulations to Bruce Jenkyn-Jones, portfolio manager for Impax Asset Management, who was recently awarded the coveted AAA-rating for his skills and process as a money manager by online financial services firm, Citywire. Citywire has been rating fund managers for over ten years and is the only firm to exclusively rate investment managers rather than funds.

Solaris announce ESG specialist

Boutique, Australian equities funds manager, Solaris, has announced that ESG specialist, Lisa Domagala, has been appointed to the Solaris investment team on a permanent part-time basis as a further sign of the managers growing profile as a mainstream funds manager having integrated ESG.

Call to participate in survey on ESG integration by superannuation funds

Griffith University is conducting a short online survey of finance professionals opinions on superannuation funds using environmental, social and governance investment criteria. The survey has received ethical approval from the Griffith University Ethics Committee and all responses are anonymous. Individuals from the fund management sector, financial planners, asset consultants, and superannuation fund executives are invited to participate. As an incentive, participants have the chance to be entered into a draw to win either a $500 voucher or a $500 donation to a charity of their choice. If you would like to take part and work in funds management, click here; if you are a financial planner, click here; asset consultants click here; or superannuation fund executives, click here. For further details, please contact Laura de Zwaan at l.dezwaan@griffith.edu.au.

New UN PRI signatories in Australia & New Zealand

Organisations in the region who have recently signed the UN backed Principles for Responsible Investment, which now has 880 signatories representing over $25 trillion USD in assets, include:

Australian Pastoral Funds Management Pty Limited, Australia
Ankura Capital Pty Ltd, Australia
Sovereign Assurance Limited, New Zealand

New principles on business and human rights endorsed by the UN Human Rights Council

In an unprecedented step, the United Nations Human Rights Council has endorsed a new set of guiding principles for business and human rights designed to provide, for the first time, a global standard for preventing and addressing the risk of adverse impacts on human rights linked to business activity. Guiding principles Adopted resolution

Australian Super hires new governance manager

Former Goldman Sachs head of ESG research, Andrew Gray, has been recruited by Australian Super to begin his role as governance manager in July 2011.

Monetary Authority of Singapore opens public corporate governance consultation

The Monetary Authority of Singapore recently released a consultation paper on proposed revisions to the Code of Corporate Governance which applies to Singapore listed companies on a comply or explain basis. Appendix A of the paper also encourages shareholder engagement with a company’s board and management to set the tone and expectation for governance of the company.

The Council invites interested parties to submit their views and comments on the proposals made in the paper and the draft amendments to the revised Code by 31 July 2011.

Cruelty Free Super director honoured by Queen

Lee Coates, a long-standing champion of ethical and socially responsible investment was recently honoured by the Queen of England as an OBE, or Officer of the Order of the British Empire. Lee Coates is awarded an OBE for services to ethical business and finance. In addition to being director of Cruelty Free Super, he is founder and director of IFA firm Ethical Investors Group and of Ethical Screening, a trustee of Ethical Giving and chair of the Ecumenical Council for Corporate Responsibility (ECCR).

NEWS FROM RIAA

A warm welcome to our new RIAA members

RIAA welcomes the organisations and individuals who have joined since our last newsletter. Read more about RIAAs programs or the benefits of membership or to receive more information, please email us at info@responsibleinvestment.org. BlackRock, asset manager Sovereign, asset owner Amy Hallihan, supporting individual

RI Academy enhances offer:

We are thrilled to announce that some new capabilities have been incorporated into the RI Academy. The enhanced version of RI Essentials includes:

Detailed financial modelling
Interactive spreadsheets
Shorter examinable study time

These new additions enhance the course offerings boosting the RI Academys ability to fast-track skills across organisations in a way that is time efficient, engaging and practical.

The RI Academy has had fantastic market feedback in relation to this new offering and we continue to receive enrolments from across global markets.

To learn more please go to www.riacademy.org or send an email to enquiries@riacademy.org.

Call for contributions to RIAAs 2011 Benchmark Report

The report is one of the most important projects undertaken by RIAA each year, dispelling any myths about our industry and ensuring that the media and investors are well informed and clear about the facts and trends that are driving growth.

This year the team at CAER will be gathering the data and putting together the report with RIAA. You will be receiving a simple email request shortly from RIAA to be able to contribute to this essential piece of research.

See last years Responsible Investment Benchmark Report 2010 for further information.

To find out more about sponsorship opportunities please contact Sarah Clawson on +61 2 8228 8100 or sarahc@responsibleinvestment.org.

New Zealand RI briefing follow up

RIAA, in conjunction with sponsors AMP Capital Investors, Bloomberg, Hunter Hall Investment Management, The Investment Store and Pathfinder Asset Management held its second Responsible Investment Briefing in Auckland on 11 July, 2011. The feedback has been positive and supportive of the growth in interest in responsible investing amongst industry participants in New Zealand. Presentations from the event will soon be posted on the RIAA website for participants to access. If you would like any further information or have any questions about the event please contact RIAA on info@responsibleinvestment.org.

RI LIBRARY

Carbon Disclosure Project launches first global cities report

CDP and the C40 Cities Climate Leadership Group have launched the first CDP Cities Global Report which presents the greenhouse gas emissions levels and reduction techniques employed by 42 major cities including Addis Ababa, Changwon, Dhaka, Hong Kong, Jakarta, Johannesburg, London, New York and Sydney.

Written by KPMG, this landmark report was launched at the C40 Cities Mayors Summit in So Paulo, Brazil, to 800 high level representatives from more than 70 of the world’s largest cities.

Responsible Research cover growth and ESG challenges in Vietnam

A new report recently released by Responsible Research examines the current complex sustainability issues in Vietnam related to demographics, environmental degradation, climate change, and energy and water security. The report identifies challenges and gaps in information by providing a review of the sustainability landscape in Vietnam. It develops a better understanding of how businesses are responding to ESG risks and their approach to corporate social responsibility.

EIRIS report shows world’s biggest companies failing on water risk management

Only a tiny fraction of the world’s biggest companies are adequately managing the various risks they face from water shortages, drought and pollution, according to new research from independent environmental, social and governance research provider EIRIS. The report A drought in your portfolio: are global companies responding to water scarcity? shows that 54% of 2,000 global companies analysed are exposed to water risks but take little or no action to mitigate them. Around half show no evidence of any management response to water risks whatsoever.

US group examines financial risks faced by coal-fired utility industry

A new report by As You Sow, a shareholder advocacy organisation in the United States, lays out the financial risks of continued reliance on coal for electricity generation. The online case studies demonstrate how the financial risks highlighted in the white paper are manifested in individual electric utilities. This white paper demonstrates that these risks combine to make current and future investments in coal-dependent utilities and coal mining companies exceedingly precarious.

Automotives in Asia

Future growth of automakers is highly tied to success in Asia. A handful of Asian automakers are competing with established global players for a presence in Asian and other global markets. A recent report from Responsible Research considers the push for electric vehicles, talent management, labour strikes and government responses to traffic congestion among a range of ESG issues that will shape the Asian automotive markets and companies, particularly in China, South Korea and India.

Google analyses clean energy innovation

How much could cheaper clean energy technologies contribute to our economy and energy security? How much could they reduce carbon emissions to mitigate climate change? Can we simultaneously meet societys goals of economic growth, security, and de-carbonization? To attempt to answer these questions, Google modelled the impact of breakthroughs in key energy sectors: clean power, energy storage, electric vehicles, and natural gas, along with combinations of clean energy policies.

Sustainalytics and Eurosif releases report on ESG challenges in aerospace and defence sector

The report, with research provided by Sustainalytics, shows that approximately 60 listed companies are involved in controversial weapon production globally. The aerospace and defence sector is often faced with corruption and bribery issues, and the defence sector deals with flattening military budgets and controversial weapon international legislation to take effect in 2012.

And some food for thoughtIt is horrifying that we have to fight our own government to save the environment.” – Ansel Adams