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Outcomes of the Who Cares Wins Initiative 2004-2008 (January 2009)

Outcomes of the Who Cares Wins Initiative 2004-2008 (January 2009)

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Published by IFC Sustainability
On January 28, 2009, IFC released the final report of the Who Cares Wins initiative. The Who Cares Wins 2008 report details the progress that has been made to increase the volume of capital that uses environmental, social and governance (ESG) analysis as a key part of investment decisions. It also provides recommendations to scale up ESG integration for widespread implementation to occur throughout the financial industry.
On January 28, 2009, IFC released the final report of the Who Cares Wins initiative. The Who Cares Wins 2008 report details the progress that has been made to increase the volume of capital that uses environmental, social and governance (ESG) analysis as a key part of investment decisions. It also provides recommendations to scale up ESG integration for widespread implementation to occur throughout the financial industry.

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Published by: IFC Sustainability on Jun 28, 2009
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05/11/2014

 
FUTURE PROOF?
 Embedding environmental, social and governance issuesin investment markets
Outcomes of theWho Cares Wins Initiative2004–2008
 
FUTURE PROOF?
Embedding environmental, social andgovernance issues in investment marketsOutcomes o the Who Cares Wins Initiative2004–2008
 
Foreword by the sponsoring institutions
Who Cares Wins was launched in early 2004 as a joint initiative o the inancial industry andthe UN Global Compact, International Finance Corporation (IFC) and the Swiss Government.The aim was to support the inancial industry’s eorts to integrate environmental, social andgovernance (ESG) issues into mainstream investment decision-making and ownership practicesthrough a series o high-level meetings with investment proessionals.At the heart o the Initiative lay the conviction that increased consideration o environmental,social and governance issues will ultimately lead to better investment decisions, create strongerand more resilient inancial markets, and contribute to the sustainable development o societies.The recent economic downturn has revealed the devastating eects o miscalculations. It hasreinorced the necessity or the inancial industry to more diligently manage their risks, includingthose related to environmental, social and governance issues. Among those is climate change,considered one o the most serious threats the global economy will have to ace in the nextcentury. A inancial system that is too short-sighted and unaware o the dynamics o climate im-pacts will ail to avoid or reduce the risks posed by a climate-induced economic crisis that couldeasily be ar greater than the credit-related crash o 2007–2008.The positive message rom the inal report o this Initiative is that the industry has come a longway since 2004 in understanding the issues and developing the methodologies and tools or ESGintegration. However it is clear that widespread implementation o these methodologies andtools has yet to occur throughout the inancial industry, and will only be possible with the col-laboration o all inancial market actors.Going orward, the engagement o asset owners and regulators is particularly sought to helpcreate much-needed enabling rameworks and market demand or ESG-inclusive investments.Intelligent regulation is a necessary component o the growth o sustainable capital lows,which implies regulation that requires greater transparency on ESG integration rom companiesand investors and relies on markets to apply the most appropriate ESG integration strategies.Implementation should also be driven by strong public-private partnerships, voluntary initiativesand principles-based approaches. Principles can oer both investors and companies guidancewhere legislation is lacking, and the chance to beneit rom ‘virtuous circles’ o ESG leadership.The Who Cares Wins Initiative is drawing to a close, but our dialogue and engagement withthe inancial industry continues unabated through other orums. We believe that this continuedengagement will be particularly important or investments in emerging markets, where ESGintegration is still an exception.We strongly believe that better integration o ESG issues into investment markets is withinreach, leading to more resilient and eicient markets and contributing to a more sustainable de-velopment o societies. IFC, the Swiss Government and the UN Global Compact urge all actors3

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