ESG

Retail supply chain management, workplace safety, gender diversity on boards, farming and antibiotic use, and climate change are among the key issues being researched by broking firms in Australia to inform responsible investment strategies. At the 8th Annual ESG Research Australia Awards held in Sydney today, Citi and Credit Suisse took out the awards for excellence in ESG research. The Awards, attended by Australia’s leading superannuation funds, fund managers and broking firms, recognise excellence in environmental, social and governance (ESG) research with three awards, including best new ESG research, best ongoing research and best ESG broking firm. 30 pieces of ESG research conducted during 2016 were nominated from seven broking firms, including Bank of America Merrill Lynch (BAML), Citi, CLSA, Credit Suisse, Deutsche Bank, JP Morgan and Macquarie Bank. Nominations were assessed by the ESG RA Research Evaluation Committee, comprising superannuation funds and fund managers. The winners of this year’s ESG Research Australia Awards are: Best Piece of New ESG Research by an Individual Analyst or Team: Get Inside the Carbon Black Box, Look Down the Carbon Value Chain by Sandra McCullagh and Zoe Whitton, Credit Suisse Best Piece of Ongoing ESG Research by an Individual Analyst or Team: Safety Spotlight: ASX100 Companies & More by Elaine Prior and Joel Quintal, Citi Best ESG Broking Firm: Citi

$23 trillion dollars – that’s the important number from the recently released Global Sustainable Investment Review 2016, a report RIAA was pleased to be launching with our colleagues from around the world in London last week.

WASHINGTON, D.C., March 27, 2017 – Today the Global Sustainable Investment Alliance (GSIA) released its biennial Global Sustainable Investment Review 2016, showing that global sustainable investment assets reached $22.89 trillion at the start of 2016, a 25% increase from 2014. The Global Sustainable Investment Review brings together the results from regional market studies by the sustainable investment forums from Europe, the United States, Canada, and Australia and New Zealand. Market information on Japan was provided by JSIF—Japan Sustainable Investment Forum; data on Asia ex Japan was provided by the Principles for Responsible Investment. GSIA leaders Flavia Micilotta, Executive Director of Eurosif: The European Sustainable Investment Forum; Lisa Woll, CEO of US SIF: The Forum for Sustainable and Responsible Investment; Meg Voorhes, Research Director at US SIF: The Forum for Sustainable and Responsible Investment; and Simon O’Connor, CEO of Responsible Investment Association Australasia (RIAA), hosted a media web conference on Monday, March 27th at 11:00 a.m. ET to discuss report findings

Consumer polling released today highlights just how strongly New Zealanders believe their KiwiSaver providers should consider environmental, social and ethical factors as a part of delivering good investment products and financial returns. A clear majority of respondents (81%) believe that it is important that KiwiSaver funds consider environmental, social and/or ethical factors providing a loud and clear signal to the industry that New Zealanders expect that their retirement savings are invested in a responsible manner. Launched today at the New Zealand Responsible Investment Conference in Auckland, the polling very clearly highlights that New Zealanders don’t see this as a choice between financial considerations or personal values, but that both should be part of good investment practice.

Opinion: RIAA CEO says “It’s time for default Kiwisaver products to better reflect Kiwi values”

A significant sum of New Zealand’s capital is now being invested responsibly – totalling $NZ 78.7 billion – with early signs showing consumer demand is increasingly following this rise that has resulted in billions shifting from mainstream to responsible funds. The new report launched today by the Responsible Investment Association Australasia (RIAA), shows this strong up take of responsible investment, from the largest institutions through to boutique funds and KiwiSaver products, is not only benefiting New Zealanders by underpinning strong investment strategies that deliver strong returns, but also contributing to a better environmental and social outlook for New Zealand.

Recently we’ve witnessed that Environmental, Social and Governance (ESG) investments have been growing across asset classes on the basis of stronger beliefs that they are not only ethically proof, but financially pragmatic as well. Yet ESG investments are not immune from macroeconomic trends and financial market shakes, particularly high volatility risk. Among the various themes at play in 2016, we see that climate finance has gained traction. Specifically, understanding the investment and regulatory implications of the COP21 Paris (The 21st Conference of Parties) agreement is paramount to investors globally.

Yesterday’s launch of the responsible investment sector’s annual benchmarking report shows responsible investment has almost doubled in 2 years. The 2016 Responsible Investment Benchmark Report by the Responsible Investment Association of Australia (RIAA) found that core responsible investment has grown by 62% in one year and is now worth $51.5 billion.

Nearly half (47%) of Australia’s investments are now being invested responsibly – totalling $633 billion – with a significant step up in consumer demand cementing this rise that has resulted in billions shifting from mainstream to responsible funds. The new report launched today by the Responsible Investment Association Australasia (RIAA), shows it’s not only consumers who are benefiting, but financial advisers, superannuation funds, fund managers and banks who are leading the way in delivering great products with great returns, whilst creating a better environmental and social outlook for Australia. “In observing the significant and consistent growth in responsible investment we can say without a doubt that this isn’t just a passing trend, but an evolution of the entire sector that is now being driven strongly by consumer demand and engagement with where they invest and bank their life savings,” said Simon O’Connor Chief Executive of RIAA. “Years of demonstrated long-term investment benefits to investors, who consider environmental, social and governance (ESG) factors, have quietly shifted around half of Australia’s investment industry to invest responsibly. Now, it is consumer demand targeted at superannuation funds, banks and financial advisers that is creating unstoppable momentum with implications for all parts of the finance sector,” said O’Connor

Today, 50,000 companies are annually subjected to ESG evaluations by 150 ratings systems on approximately 10,000 metrics according to MIT Sloan Management Review.