INDUSTRY NEWS
Clean Energy Futures bill becomes federal law in Australia.
India requires ESG disclosure from listed companies
Six months after voluntary guidelines on ESG reporting were first issued for the Securities and Exchange Board of India (SEBI), new regulation has just passed requiring ESG reporting from companies in their annual reports. Companies must submit "Business Responsibility Reports describing measures taken by them along the key principles enunciated in the ‘National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of Business’ framed by the Ministry of Corporate Affairs". To start with, the requirement will be applicable to top 100 companies in terms of market capitalisation and will be extended to other companies in a phased manner.
Novethic and BNP Paribas IP study examines ESG practices among European asset owners
Novethic, with the support of BNP Paribas Investment Partners, released the results of its second annual survey, “European Asset Owners’ ESG perceptions and integration practices“. In 2011, more than 250 asset owners across 11 countries were surveyed on the incorporation of Environmental, Social and Governance (ESG) criteria into asset management. Managing a total of EUR4, 540 billion, these investors have gradually integrated the notion of ESG risks, although responsible investment is defined very differently from one country to another.
2011 Australian sustainability awards – nominees announced
Ethical Investor has announced nominees for the financial services awards category of the 11th annual Australian Sustainability Awards. Awards in the this category are: Ethical Investor Fund of the Year, Sustainable Super Fund of the Year and a new individual award, the Erik Mather Sustainability Champion Award.
Winners will be announced at the awards luncheon in Melbourne on 6 December. Guest speaker is Productivity Commissioner Robert Fitzgerald.
Local Government Super launches tri-generation project in North Sydney
76 Berry Street, North Sydney, a 25-year-old A-grade commercial building, has been retrofitted by LGS to provide industry leading energy efficiency, with the project committing to a 6 star rating from NABERS. The building remained fully occupied during the whole upgrade and the building’s emissions have been reduced by approximately 85%.
Donald McDonald is appointed chairman of IIGCC
The Institutional Investors Group on Climate Change (IIGCC), the leading European investors’ forum for collaboration on climate change, has appointed Donald MacDonald as Chairman. Donald is a Trustee Director of the BT Pensions Scheme and is a past Chairman of the United Nations Principles for Responsible Investment. He was appointed a Trustee of BTPS in 1998 and previously served as a Director of BT Quest Ltd (BT Qualifying Employee Shares Trust) as an employee representative. Donald was formerly President of the Communication Workers Union.
GMI names and shames firms for poor governance
ESG research and ratings group GMI, have release their risk list of corporate governance failures. The report highlights the poor ESG performance of a number of global groups including News Corp and the Apollo Group. GMI CEO Jack Zwingli stated, “Corporate failures are often driven by non-financial issues, in areas where management is not sufficiently addressing risks or has interests that are not aligned with long term performance and sustainability.”
Global cluster munitions legislation and implications for investors
Cluster munitions are a collection of ten to several hundred individual sub-munitions, weighing less than 20 kilograms each, designed to scatter and explode over an area as large as several football fields. Human rights organizations, non-governmental organizations (NGOs), media, and local governments have campaigned against cluster munitions due to the widespread and indiscriminate damage inflicted upon both soldiers and civilians. Cluster munitions, along with other indiscriminate weapons such as landmines, are covered by international humanitarian law. The MSCI blog reviews the international and country-specific cluster munitions mandates, including recent developments in the Netherlands, and provides a focused view on the legislation prohibiting investment.
German council for sustainable development adopts German sustainability code
In mid-October 2011, the German Council for Sustainable Development submitted a recommendation for a German Sustainability Code to the Federal Government. The Council recommends that all companies voluntarily apply the German Sustainability Code. The Sustainability Code comprises 20 criteria, each of which has one or two key performance indicators relating to environmental, social or governance (ESG) issues. Companies use the key performance indicators to report on compliance or to explain non-compliance with the Code’s requirements.
Crescent Wealth launches Australia’s first Islamic investor option
The Crescent Australian Equity Fund (CAEF) offers all Australians an investment that is managed in accordance with Islamic principles, and is aimed at investors who are seeking a socially responsible alternative option. Crescent Wealth is planning to launch a further three funds – international equities, property, and income funds – which together will form Australia’s first Islamic superannuation option.
GRI launches sustainability disclosure database
The Global Reporting Initiative has launched a new Sustainability Disclosure Database, covering data on the environmental, social and governance (ESG) transparency of more than 3,000 companies worldwide. The free service includes references to sustainability guidance from different organizations, including the Carbon Disclosure Project, the International Standards Organisation, the Organisation for Economic Cooperation and Development and the UN Global Compact
Trucost launch world first sustainable procurements app
Trucost and Rosslyn Analytics recently launched the world’s first self-service sustainability app which enables procurement, supply chain and corporate social responsibility departments to calculate and manage the carbon and water footprint of every supplier in their supply chain across the world in seconds.
Boards not taking water risks seriously despite growing short-term risk: CDP Water Report 2011
The newly released water report finds that the boards of major companies are not taking the issue of water risks such as flooding or scarcity as seriously as they should be despite growing evidence of near-term business impacts, according to the biggest global corporate survey of the issue. Just over half (57%) of the 190 companies responding to this year’s CDP Water Disclosure survey said they had director oversight of water risks or policies, less than the number of companies (59%) reporting exposure to potential related financial problems.
New California based guide released on human trafficking risks in supply chains
The Interfaith Center on Corporate Responsibility (ICCR), Christian Brothers Investments Services (CBIS), and Calvert Investments has released a guide to help companies address human trafficking risks in supply chains: “Effective Supply Chain Accountability: Investor Guidance on Implementation of The California Transparency in Supply Chains Law and Beyond”. The guide identifies good corporate practices to ensure corporate compliance with the law, the business case for compliance, shareholder expectations, and the elements of a comprehensive human rights due diligence framework.
Paul Hawken interview with mecuTV
Paul Hawken speaks with bankmecuTV about the international credit crisis, the ‘Occupy Movement’ and how to make a difference by investing your money wisely.
View the video on their website.
Fodder King examines sustainable water solutions
Fodder King has devised a water management plan to use treated wastewater to produce high yielding fodder crops that can benefit local communities whether the water is derived from municipal, mining, industrial or energy-project sources. Learn more about an innovative agribusiness that is providing environmental solutions for wastewater.
NEWS FROM RIAA
AGM and Responsible Investment Annual 2011 launch: Monday 5 December
RIAA’s AGM will be held on Monday 5 December from 4pm to 5pm at NSW Trade & Investment, Level 47, MLC Centre, 19 Martin Place, Sydney. Please email kateb@responsibleinvestment.org with any apologies or RSVPs.
RIAA will also launch the Responsible Investment Annual 2011, (including performance, growth, participation, initiatives and a special new feature on property with the GRESB report) on Monday 5 December from 5.15pm to 7pm at NSW Trade & Investment, Level 47, MLC Centre, 19 Martin Place, Sydney.
Our keynote speaker is Mr Simon McKeon. Mr McKeon is the 2011 Australian of the Year,
Chairman of Business for Millennium Development, Director of Vision Fund International and Chairman of the Board of CSIRO.
Responsible Investment 2011 has been made possible with the generous support of Australian Ethical Investment & Superannuation, Advance Asset Management and BT Financial Group, Perpetual and Solaris Investment Management.
RIAA would also like to thank our event sponsor for our launch, NSW Trade & Investment.
A warm welcome to our new RIAA members
RIAA welcomes the organisations and individuals who have joined since our last newsletter. Read more about RIAA’s programs and the benefits of membership. To receive more information please email us at info@responsibleinvestment.org.
Advance Asset Management, asset manager
Cromwell Funds Management Ltd, asset manager
Grace Mutual, supporting organisation
Just Screening, research firm
Social Enterprise Finance Australia Ltd (SEFA), asset manager
Michael Harrison, supporting individual
RI Academy update
The RI Academy had a successful trip to Brisbane for the 2011 ASFA Conference, meeting with new and existing members including HESTA, SunSuper, VicSuper, FTSE Group, and many more. The Academy showcased course offerings and demonstrated the capabilities that have positioned it as a unique and market leading training tool.
The RI Academy will be enhancing its suite of modules with new courses and features to come in 2012. These include:
- RI FOR DUMMIES: A brief overview of the Academy including a small sample of case studies, ESG theory, financial valuation techniques, proprietary learning models and self-testing.
- CERTIFICATE 1: Advanced courses in climate change finance and enhanced ESG financial analysis. Designed for institutional investors, asset managers and related service providers.
- RI FOR WEALTH MANGERS: Specialist course for all financial advisers and wealth management operators.
- RI FOR CORPORATES AND PROFESSIONAL ADVISERS: Specialist course for companies and professional advisers.
Responsible Research partner with RI Academy to deliver market leading ESG training
To help build best practice capabilities across international investment and capital markets, Responsible Research has recently signed on as a marketing and distribution partner with the RI Academy. Current world economic focus on Asian market growth, recent APEC policy achievements, including Trans-Pacific Partnership developments, and the Asian funds management passport program open up particular opportunities for financial services providers to enhance their regional offerings. These developments lend themselves to partnering with Responsible Research particularly given their traditional profile, strength and presence in Asian markets. Increasing recognition of the importance of ESG skills, knowledge and training for financial market stability, and the flow of investment to sustainable enterprise makes us excited about joining with Responsible Research to distribute the Academy.
Members who have been certified by RIAA
RIAA congratulates members who have met the strict disclosure requirements of the Responsible Investment Certification Program since our last newsletter. These members are now able to display the Certification Symbol that helps investors identify and compare responsible investment products. The Certification Symbol also helps to identify financial advisers with training and experience in this specialised area of financial advice.
Certification renewals
Australian Ethical Investment, fund manager
AMP Capital Investors, fund manager
UCA Funds Management, fund manager
Louise Edkins, Ethical Investment Advisers, financial adviser
Newly certified
Australian Ethical Superannuation, super fund
Statewide Super, super fund
RIAA’s 2012 Responsible Investment Conference to be held 30 & 31 August in Melbourne
Save the date! RIAA’s famous biennial conference will be taking place on Thursday 30 & Friday 31 August, 2012 at the Sofitel in Melbourne. Mark your calendars and get ready for another exciting conference with inspirational speakers providing insight into the trends, movements, discoveries, tools, short-cuts and resources that the industry has to offer.
More information about sponsorship opportunities and pre-registrations will be available soon. Should you have any questions please give us a call on 8228 8100 or email us at info@responsibleinvestment.org.
RI LIBRARY
CAER and ACSI examine the bribery risk management practices of Australian companies
The report, entitled ‘Anti Corruption & Bribery Practices in Corporate Australia‘ provides a snapshot of exposure to bribery and corruption risk across ASX200 companies, focussing on those with operations in high-risk sectors and/or high-risk countries. The report also provides comparisons of companies’ stated anti-corruption and bribery policies against companies’ disclosed management systems for implementation.
Responsible Research publish “Cleaner Coal in Asia” report
Responsible Research has published a report on Cleaner Coal in Asia: Issues for Responsible Investors. It examines the marketplace in Asia for coal-fired power generation and consider the prospects for cleaner coal technologies and processes. For investors, the financial opportunities and risk mitigation offered by these technologies are set to increasingly influence industry returns. The report looks at the ten most significant power generators in 5 markets and considers their implementation of cleaner coal technologies.
The full report may be purchased by contacting info@responsibleinvestment.org.
Hunter Hall sustainability report
Hunter Hall has released its second dedicated sustainability report covering the fund manager’s responsible investment practices and its own corporate responsibility initiatives. Enhancements to the report this year include: alignment of reporting with the six UN PRI principles; details of abstain or against proxy voting; as well as portfolio carbon footprint and liability analysis. The report also summarises the results of Hunter Hall’s first Environmental Engagement Program which works with investee companies to make practical and tangible improvements to their environmental practices and performance.
US Sustainability and Investment Forum release new report
Meg Voorhes, Deputy Director and Research Director at US SIF has announced the release of their latest report: Sustainability Trends in US Alternative Investments. The report provides a detailed snapshot of private equity and venture capital funds, property investment funds and hedge funds based in the United States that consider environmental, social and corporate governance criteria in fund management. It documents the growth in their numbers and assets from 2010 to 2011, and examines the networks and field-building organisations that have helped to facilitate growth in this field.
Eurosif launches 2011 corporate pension funds & sustainability investment study
The 2011 Corporate Pension Funds & Sustainable Investment Study is the first comprehensive European-wide study on corporate pension funds and sustainable investment. Launched at Eurosif’s 2011 Annual Meeting, the study examines to what extent and in what manner corporate pension funds across Europe have adopted sustainable and responsible investment practices.
Sustainalytics release new report on mining industry
There is growing acceptance among multilateral development agencies, NGOs and responsible investors that indigenous people have a right to participate in decisions affecting their land and resources, including the right to provide or withhold their free, prior and informed consent (FPIC) to natural resource development projects.
In “License to Operate: Indigenous Relations and Free, Prior and Informed Consent in the Mining Industry“, Sustainalytics discusses some of the challenges of implementing FPIC and the extent to which the industry has endorsed the concept. Given the materiality of community relations to the mining sector, this report also encourages investors to put pressure on companies to implement these tools and to further the debate on FPIC.
Disclosure on managing human rights risk – report from CAER, ACCA and Net Balance Foundation
Net Balance Foundation, in collaboration with ACCA and CAER, is pleased to release its latest disclosure report examining the human rights governance, risk management and reporting quality of companies in the ASX 100. The research shows that 90% of Australia’s large companies most exposed to human rights issues may have inadequate public disclosures and responses in place to mitigate associated risks.
UPCOMING EVENTS
6 December 2011, New York, NY, USA
27-29 February 2012, Melbourne, Australia
8th Annual Australasian Cleantech Forum
28 February 2012, Sydney, Australia
Indigenous Sustainability: Enterprise, Education & Environment
27 March 2012, Singapore
ESG Asia 2012 – brought to you by Responsible Investor, Responsible Research, and SGX
2-4 April 2012, Sydney, Australia
National Sustainable Food Summit
2-4 May 2012, Washington D.C., USA
Sustainable Investing in Action, USSIF Annual Conference
14 – 20 October 2012, UK
The fifth National Ethical Investment Week (NEIW12)
28-29 June 2012, Rio de Janeiro, Brazil
PLEASE FEED THE NEWSLETTER
We want RIAA Window to be useful and relevant to you as an RI practitioner, so we welcome any suggestions and feedback (or jokes!) you might have. Please don’t hesitate to contact us at info@responsibleinvestment.org.
