Sustainability: Sustainable Ivestments

Showing posts with label Sustainable Ivestments. Show all posts

A Daft Half Penny: Sustainable Investment Found Lacking Among UK Pension Funds

"A large number of corporate pension funds are still lagging behind the leading schemes in their approach to responsible ownership and investment." -- UKSIF chief executive Penny Shepherd[1]

The cost of paying for future pensions in the United Kingdom has inflated due to a reduction in the yield of government bonds, according to figures released last month by the Pension Protection Fund (PPF), a statutory fund that protects members in case of employer insolvency.

Investments for profit, people and the planet.

With some experts predicting a ten-fold increase in impact investments to $500 billion by 2014 (1% of all managed assets), this forward-looking conference will analyse and debate the most effective ways for investors to generate environmental, social and financial returns.

FN Asset Management Awards 2011 - SRI/Sustainable shortlist

Judges are still casting their votes for the Financial News Awards for Excellence in Asset Management 2011, but the polls will close at the end of tomorrow. For those readers that haven't seen the shortlists yet, here is the list of five nominees for the SRI/Sustainable Investment Manager of the Year category.

Germany’s status as a leading centre for shareholder engagement on sustainability and corporate governance has been reinforced by research finding two thirds of institutional investors favour using such issues when investing, and most follow this with active engagement.

On average German institutional investors apply sustainable factors to half their assets, but this rises to almost three quarters (73%) for foundations, according to the survey, by Union Investments of 218 large-scale investors managing about €1trn.

Funds need to protect their portfolios against climate change.
Superannuation funds that do not respond adequately to the challenges of climate change, risk making less money for their members.
Investment consultancy Mercer estimates the typical fund would need to direct up to 40 per cent of its portfolio towards investments that would benefit from climate change. These include investments in clean technology and ''green'' commercial property. It's estimated 30 per cent of global greenhouse gas emissions come from property and most big super funds have high exposure to commercial property.
In a report released in February, Mercer says technology designed to achieve a low-carbon transformation is creating a big investment opportunity for super funds. As much as $5 trillion could be invested in such technology worldwide by 2030.

Citi has announced the addition of “socially responsible investment solutions” to its securities lending cash collateral investment program. The company’s securities lending clients can now elect to invest cash collateral under socially responsible investment (SRI) principles that consider environment, social and governance (ESG) factors, Citi said. It said that the new service allows clients to meet their SRI goals while optimizing portfolio performance.

THE effects of climate change, the scarcity of food, future energy sources and how businesses treat the environment and their workers are all significant global issues that companies and investors can no longer ignore.
It is little wonder then, that so-called responsible investing - also referred to as ethical, green or sustainable investing - is striking a chord with a growing number of individuals and fund managers.
At a time when many people are still reeling from the effects of the global financial crisis, the consumer demand for responsible investment products has almost doubled.

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The Responsible Investment Association Australasia (RIAA) reports ethical adviser portfolios grew from $972 million to $1.46 billion in 2010, following a decrease of 21 per cent in 2009.

Officials at the Financial Services Authority (FSA) could need training courses if they opt to delve further into product intervention.

This is the view of Penny Shepherd, chief executive of UK Sustainable Investment and Finance (UKSIF), who was responding to the publication of a report on the topic by the regulator.

She suggested there is a real risk that financial institutions may find themselves being stifled by such input.

Ms Shepherd said: "If the FSA intervenes more strongly in the design of financial products, its supervisors will need a greater understanding of modern sustainable and responsible investment approaches."

Location map of the Palestinian territories (W...

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The Riyadh-based International Finance Corporation (IFC), a member of the World Bank Group, is to give an SR11 million loan to support entrepreneurs and create jobs in the Palestinian territories.

“The World Bank is supporting micro and small businesses and encouraging job creation in the Palestinian territories through the loan to Palestine for Credit and Development — known as Faten — a leading microfinance institution,” said Walid Almurshed, head of IFC Saudi Arabia and Investment Principal in the Middle East, North Africa and East Europe.
Faten had more than 12,000 clients, of which 80 percent are women, and a total outstanding portfolio of SR90 million.
“With IFC’s help, Faten plans to reach 22,000 customers and develop a net outstanding portfolio of SR123 million by 2015,” Almurshed said.
IFC’s loan will help Faten expand its outreach in West Bank and Gaza, where 80 percent of employment is generated by micro, small and medium enterprises.

Classroom in Armitage boarding school/The Gambia

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Relations between the government of The Gambia and the Arab Bank for Development in Africa (BADEA) can aptly be described as fruitful, as demonstrated by the moral commitment by both sides meant to advance the socio-economic development of the Gambian people and humanity at large.
Investing in the education sector of a developing country like The Gambia is the most important and sustainable investment that any true friend can conceive and implement as illustrated in the recent signing of a US$ 7 million loan agreement between the government of The Gambia and BADEA, at a ceremony held at the State House, presided over by the development-oriented Gambian leader.

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Companies must think about strategies over 30 to 40-year horizons and commit to specific financial targets about behaving responsibly, warns Karina Litvack, head of governance and sustainable investment at fund manager F&C.
Litvack’s views matter because she controls the ‘responsible engagement overlay’, which accounts for £82.7 bn ($135 bn) of F&C’s £108 bn assets under management. She has strong views about a range of sectors, including oil and gas and banking, where she believes executives should get no bonuses if credit quality falls too low.

The Energy and Resources Institute (TERI) and ICICI Bank on Wednesday signed a ‘soft loan agreement' to promote research and development in the areas of nano-biotechnology, energy efficient technology, micro enterprise systems and other vital areas of sustainable development.

The agreement was signed between TERI Director-General R. K Pachauri and ICICI Bank Managing Director and CEO Chanda Kochhar here.

The Australian sustainable business market is poised to grow to AU$2.9 billion (US$3.1 billion) in 2014, dependent on the outcome of the country’s hotly debated carbon tax, analyst firm Verdantix has projected. A Verdantix study predicts that the market will increase at a 13 percent compound annual growth rate (CAGR) from AU$1.6 billion in 2010. The report, Australian Sustainable Business Spending 2009-14, forecasts that sustainability spending will exceed AU$1.8bn in 2011, a nine percent rise over 2010 levels, before increasing by 13 percent to AU$2.1bn in 2012.

FTSE4Good launches corporate ESG ratings

Index provider says that environmental, social and governance factors will become more prevalent in investment analysis, decision-making and stewardship.

A decade after the launch of the FTSE4Good Index Series, FTSE Group has launched a new FTSE4Good ratings system that is designed to measure environmental, social and governance (ESG) factors.

FTSE Group claimed this new data service provides a comprehensive, transparent and objective system to measure ESG practices of over 2,300 public companies worldwide.

The Stock Exchange of Thailand in Ratchadaphis...

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BANGKOK, April 4, 2011 /PRNewswire/ -- Mrs. Atchaka Sibunruang, Secretary General of the Thailand Board of Investment, has revealed that emphasis is being given by the BOI to promoting investment conducive to sustainable development that allows industry to coexist harmoniously with the community and with the natural environment. This approach will enable Thailand to develop in a sustainable way on into the future.

Last year, the BOI issued investment promotion policies for sustainable development. Special tax incentives have been offered to attract investment in activities related to eco-friendly products, alternative energy and high-tech industries. Additional measures have also been implemented to encourage companies to reduce energy consumption or use renewable energy.

Headquarters of Friends Provident 100 Wood Str...

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Friends Provident International has launched two mirror funds to help clients benefit from the economic growth of frontier markets and global environmental sustainability themes.

Jim Henning, funds marketing and research manager, unveiled the Alquity Africa fund and Pictet Environmental Megatrend Selection fund. Both are domiciled in the Isle of Man and principally available to offshore investors in Asia and the Middle East.

The Alquity Africa fund invests in a portfolio of companies across the African continent. A minimum of 25 per cent of the fund's net management fee of 1.9 per cent is donated to support development initiatives in the areas in which it invests. The fund's goal is to help create 100,000 sustainable jobs in Africa by 2012.

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Identifying climate change and increasing demand from institutional and retail investors as key drivers behind the adoption of sustainable investment, a white paper published by the World Economic Forum (WEF) states, "A sustainable investing approach can lead to better risk-adjusted financial returns."
Finding, however, that "only a small percentage of investors include ESG (environmental, social, and corporate governance) factors in their investment and ownership decision-making processes," the paper, entitled Accelerating the Transition towards Sustainable Investing, found that barriers to the uptake of sustainability exist for investors and corporations, as well as at a systemic level.

Though there are those who want mileage from being seen to be responsible, for most, SRI funds must stand on their own two feet. Craig Drake.

SUSTAINABLE investment, or socially responsible investment (SRI), has been on a rapid ascent for the last decade, but outside of providing dinner party credibility for the chattering classes wanting to appear to be doing the right thing, are SRI funds worth a look for investors who are concerned with returns and growth?

For all the talk about the ability of sustainable development funds to hold their own, the chart on the bottom right, which tracks the Dow Jones sustainability index against its global index, will make for awkward viewing.

Clare Brook, Fund Manager of the IM WHEB Sustainability Fund is buoyant with regards to this big gap between global funds that include big miners and refiners of fossil fuels and those that focus on so called clean energy: “we see this gap as an exciting opportunity for the clean energy sector, which has plenty of ground to make up.

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Israel’s TA-25 Index gained for the first time in three days, advancing 0.2 percent to 1,255.22 at 12:43 p.m. in Tel Aviv. The gauge has lost 1.4 percent this week.

The following stocks rose or fell today. Symbols are in parentheses.

Oil Refineries Ltd. (ORL IT) retreated 2.2 percent to 2.342 shekels, headed for the lowest close in three months. Israel’s biggest refiner was lowered to “market perform” from “outperform” at Clal Finance Brokerage Ltd. and to “market perform” from “buy” at Psagot Investment House Ltd.

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As we all become more environmentally responsible and more focus is placed on climate change through the government and media, then more "green" investment ideas and products come on the market. They allow investors to make decisions not based solely on financial consideration but also take into account the ethical implications that come with their chosen investment.