Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more ➡
Download
Standard view
Full view
of .
Add note
Save to My Library
Sync to mobile
Look up keyword
Like this
1Activity
×
0 of .
Results for:
No results containing your search query
P. 1
ESG Yields Profits

ESG Yields Profits

Ratings: (0)|Views: 266|Likes:
Published by Ron Robins
When I started my career as an investment analyst in 1970, the idea that a company’s environmental and social activities would be important in helping predict its future financial and stock performance was seen as largely irrelevant. Well, not anymore!
When I started my career as an investment analyst in 1970, the idea that a company’s environmental and social activities would be important in helping predict its future financial and stock performance was seen as largely irrelevant. Well, not anymore!

More info:

Categories:Business/Law, Finance
Published by: Ron Robins on May 30, 2011
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, DOC, TXT or read online from Scribd
See More
See less

05/30/2011

pdf

text

original

 
ESG Yields Profits
By Ron Robins, Founder & Analyst,Investing for the SoulBlogEnlightened Economics;twitter First published May 24, 2011, in his weekly economics and finance column atalrroya.comWhen I started my career as an investment analyst in 1970, the idea that acompany’s environmental and social activities would be important in helping predictits future financial and stock performance was seen as largely irrelevant. Well, notanymore!Inclusive of governance issues and abbreviated as ESG (environmental, social andgovernance), factors pertaining to ESG are now included in mainstream corporatestock and bond analysis in numerous investment firms, funds and managers globally.Why? Because it provides analysts better insight into companies and a possibility of producing higher investment returns with less risk.ESG has its beginnings in ethical and socially responsible investing (SRI), which havetheir roots in some religious traditions. Now, with mounting environmental andclimate change concerns, ‘green’ or sustainable investing has emerged. It was withthese asset classes that ESG issues first began to play a pivotal role. However, ESGissues are now becoming a significant factor in all asset classes.Evidencing the enormous shift towards inclusion of ESG issues in investment analysisamong global financial institutions, were the findings reported in a September 14,2010, press release of the United Nations (UN) Principles for Responsible Investment(PRI). The PRI is a “ …framework to help investors achieve better long-terminvestment returns and sustainable markets through better analysis of environmental, social and governance issues in investment process and the exerciseof responsible ownership practices.” Companies sign on as signatories to the PRIframework.In the PRI press release, Executive Director James Gifford said, “every large, world-class listed company is now monitoring and reporting on its ESG performance, andso too are an increasing number of investors.” The PRI reported that, “total [PRI]signatory numbers… has jumped in the last year by more than 30 per cent… Thevalue of the assets under management of PRI signatories now stands at $22 trillion,over 10 per cent of the estimated total value of global capital markets…” Continuing, “signatories are now drawn from 45 countries… Over 95 per cent of assetowners and 87 per cent of investment managers have an overall investment policythat addresses ESG issues... The percentage of asset owners involved in dialoguewith regulators on ESG issues rose to 85 per cent.” And governments and regulators everywhere are listening. Countries that are takingbig steps in promoting ESG issues in corporate reports include the USA, the UK,France and Sweden. Also, the European Union might soon have a policy for allmember countries on ESG corporate reporting as well.

You're Reading a Free Preview

Download
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->