The Johannesburg Stock Exchange partnered with EIRIS, the ethical research organisation, at the end of 2007 to help enhance the JSE’s Socially Responsible Investment Index. The JSE worked with EIRIS to review its index criteria and construction so that the index reflects the environmental, social and governance approach of the UN Principles for Responsible Investment and is also aligned with the FTSE4Good Environmental Criteria. The review also included additional concerns that are relevant to South Africa such as black economic empowerment, HIV/Aids and skills development. The JSE’s index assesses the environmental, social and economic sustainability and corporate governance practices of South African listed companies. Contact EIRIS www.eiris.org ; JSE www.jse.co.za
Action plan for financial inclusion
An action plan to promote financial inclusion was launched by the UK Treasury on December 6. It aims to enable all UK citizens to access the financial system and to manage their finances. Financial inclusion: an action plan for 2008-11 outlines:
– the government’s aims and policy framework for financial inclusion
– the challenges faced by the government and other key stakeholders, including the financial services, to achieve these aims
– recent progress in understanding policy responses to these challenges
– the details of the government’s action plan for financial inclusion
The plan’s timeline is the three-year spending period from April this year to March 2011. Contact HM Treasury 020 7270 5000 www.hm-treasury.gov.uk
Carbon markets
A global carbon market is very important in the fight against climate change according to a new report from the World Business Council for Sustainable Development. Establishing a Global Carbon Market: A discussion on linking various approaches to create a global market considers the different ways in which to link the national systems with one another. According to the report, linking emissions management approaches, such as ‘cap-and-trade’, taxes and renewable energy obligations, could create a single market and cost for carbon emissions and provide equal access to reduction opportunities for both developed and developing nations. The report further identifies a framework, which emphasises a multinational approach to creating a worldwide carbon market. Contact World Business Council for Sustainable Development 0041 22 839 3100 www.wbcsd.org
Banks could do better
The banking sector is not tackling sufficiently the business challenges posed by climate change according to a new report from Ceres, the US-based network of investors and environmental organisations. The report – Corporate Governance and Climate Change: The Banking Sector – was published on January 10 and found that of the 40 banks examined, the majority do not integrate climate risks into business strategy by pricing carbon into finance decisions or setting targets to decrease emissions.
HSBC and ABN AMRO scored the highest with 70 and 66 points respectively with Lehman Brothers and Bear Stearns two of the lowest scorers with 26 and 0 points respectively. Ceres used a 1 to 100 scoring system and evaluated how the banks are addressing climate change through management performance and strategic planning as well as a number of other areas. 16 US banks, 15 European banks, five Asian banks, three Canadian banks and one Brazilian bank were assessed. Contact Ceres 001 617 247 0700 www.ceres.org
Investors urge ESG performance
A group of investors, led by Morley Fund Management, have urged companies signed up to the UN Global Compact to stick to their promise of regularly reporting on their environmental, social and governance performance it was announced on January 15. The investors – signatories to the UN Principles for Responsible Investment and representing around $2.13 trillion in assets – wrote to the chief executives of 103 companies in 30 countries to praise those who regularly report and to pressure those that don’t. The UNGC requires member companies to implement 10 principles in the areas of human rights, labour standards, the environment and anti-corruption and the investors believe that a company’s ability to manage and mitigate risks associated with these issues is strongly connected to its financial success.
Contact Morley Fund Management 020 7809 6000 www.morleyfm.co.uk
Pension fund transparency
Many UK pension funds are still ignoring human rights and climate change according to a survey from FairPensions, the UK campaign group, published on December 15. The survey assessed 20 of Britain’s largest pension funds – many supported by companies who are leaders in the corporate responsibility field – and found only 20% publically disclose voting records and 50% have no policy with regard to environmental, social and governance issues.
The UK Pension Scheme Transparency Survey on Environmental, Social and Governance Issues 2007 highlights the concern that many pension funds are not accountable and that this may be risking returns. It found that only 5 of the 20 pension funds surveyed were able to provide actual results of engagement on environmental, social and governance issues. The British Airways Pension Scheme and the BT Pension Scheme were among the top scorers with Barclays Bank plc UK Retirement Fund and BAE Systems Pension Scheme some of the lowest scorers. Contact FairPensions 020 7403 7800 www.fairpensions.org.uk
COMMENTS