News and comment for December / January from CCB 103
PRI launches ESG broker research database
The Principles for Responsible Investment (PRI) announced on December 4 plans to launch the first global, non-commercial database, dedicated to showcasing investment research which focuses on environmental, social and governance (ESG) issues and provides enhanced analysis to asset managers and owners. The plans are a decisive move to extend the availability of enhanced investment research among PRI’s global signatory base. The launch of this database is the first step of the recently announced merger between the UNPRI and the Enhanced Analytics Initiative (EAI). The PRI said the database, which will be free to signatories, is expected to be fully operational in spring 2009 following a test period by investors.
Contact: United Nations Principles for Responsible Investment www.unpri.org
$1.5 trillion dollar investor alliance pushes corporations on water policies.
Starbucks, GlaxoSmithKline and Carlsberg Group are among companies targeted by a $1.5 trillion investor alliance to push 100 of the world’s leading corporations to disclose their policies on water use and make structural improvements where possible or necessary. The investor alliance, all signatories to the United Nations Principles for Responsible Investment (UNPRI), is asking the 100 companies to join the ‘CEO Water Mandate’, launched in July 2007 and designed to assist companies in the development, implementation and disclosure of water sustainability programmes by assisting with corporate policy and the sharing of best and emerging practices. The announcement was made on December 9.
Contact: The United Nations Principles for Responsible Investment www.unpri.org
Despite the current economic turmoil it is gratifying to see that investors are still urging global businesses to disclose their policies on water usage and essentially, make improvements where possible. The role of investors to maintain pressure on businesses when it comes to responsibility is critical, now more than ever, to ensure that ethical business practice and all the good work done in the “boom period” doesn’t get forgotten in the financial downturn. There now has to be a move towards understanding what Sustainability really means. The credit crunch has exposed those individuals and businesses who have clearly not thought sustainably. Short term gains to the detriment of long-term growth and development has proved to be a loser’s game. Starbucks, GlaxoSmithKline, Carlsberg Group and others are rightly under investor pressure from a group of UN Principles for Responsible Investment signatories. Surely being efficient with our water usage is just common sense? As the recent, highly public exposé on Starbucks revealed, it’s clearly not alright to waste more than 23.4million litres of water a day. Not only is the practice hugely wasteful of a resource which is under mounting stress and depletion perpetuated by climate change, but the cost implications to the business of using that much water are clearly significant. In order for business to survive, and importantly, be sustainable, it needs to think about its finances with prudence. However, ensuring that business thinks sustainably in its broadest sense, environmentally and socially, is something that gladly investors are realising is vital not only for the survival of their investments, but of us all.
New partnership for BofA
Bank of America announced on December 3 a new partnership with Harvard University Centre for the Environment. The collaboration, which includes a $1 million grant from the Bank of America Charitable Foundation, will support the development of a Carbon Capture and Storage (CCS) Action Plan. The CCS Action Plan brings together experts from across Harvard University with environmental leaders from industry, government and the nonprofit community to address the economic, policy, technological and legal implications of CCS. “Bank of America’s support will allow us to bring together expertise from across many disciplines – including engineering, geology, economics, business, law, and government – to develop a plan for implementation of CCS at the scale needed to address our greenhouse gas reduction goals,” said Daniel Schrag, Director, Harvard University Centre for the Environment.
Contact: Bank of America www.bankofamerica.com
SRI funds also suffer heavy redemptions during apex of the credit crisis.
Green funds in Europe recorded a massive €834.7 million ($1.1 billion) withdrawal in October during the height of the credit crisis, according to the latest available figures compiled for Responsible Investor by Lipper Feri, the investment data group. Including asset depreciation as a result of the market downturn, the withdrawals took the total size of Europe’s green fund market down to €13.6 billion by the end of October from €17.9 billion at the end of September. The outflows follow September’s green sector client redemptions of €616 million ($748 million) after a slight rally in August when they took in €64 million in new money.
Contact: Lipper Feri www.lipperweb.com
Venture capital to drop, but clean tech OK
According to the respondents of the third annual National Venture Capital Association (NVCA) Predictions Survey, the coming year will be met with a slowdown in investing across most sectors and a continued weakened exit market. Despite lower investment predictions across all industry sectors, clean technology is viewed by the highest percentage of respondents as potentially growing in 2009 with 48% predicting increased investment.
Contact: National Venture Capital Association www.nvca.org
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