Feature Articles
Investing in Socially Responsible Companies is a Must for Public Pension Funds – Because There is no Better Alternative
By S. Prakash Sethi
Prof. Sethi argues that the short-term performance
focus of pension funds (as well as mutual funds) is not sound fiduciary
practice. The primary argument that fund managers use against implementing
Socially Responsible Investing (SRI) is based
in the notion that providing the highest possible quarterly returns
is a primary fiduciary responsibility. This article
provides an insightful analysis as to why the short-term bias of financial
intermediaries seriously undermines the long-term interest of pension
fund beneficiaries. In the end, Prof. Sethi
makes a strong argument for greater transparency, accountability, and
better corporate governance practices. He
also provides concrete examples of how corporations have been responding
to these challenges. Click
here for PDF Download.
Clean
Technology
By Diana Propper de Callejon, Mark Donohue and Rob Day
Diana Propper, a pioneer in the field of
sustainable private equity, and her colleagues Mark Donohue and Rob
Day, provide an outstanding, concise, and easily intelligible introduction
to the growing CleanTech investment sector. The
article is published in the forthcoming issue of LOHAS (Lifestyles of
Health and Sustainability) Journal. Click
here for PDF Download.
Columns
The Sustainbility Change Agents
by Robert Rubinstein
I had been traveling a significant amount the last couple of months, visiting various financial institutions and meeting with a great number of people who are trying to institutionalize sustainability within their organizations. What struck me is that, in most cases, the sustainability champions of each of the financial organizations had many things in common. They were often women, working in isolation, under-staffed, without any significant budget, and all doing heavy lifting.
I often wondered was the position given as a reward or punishment.
I remember one gentleman told me he was given a clear mandate to push sustainable investment products and services, but he was given no budget. A bit odd for a bank, or maybe not so odd. As I always have said, until banks see the clear investment opportunities ("what's in it for me?"), things will go slow. When that opportunity is seen, we will move rapidly.
Coming back to the issue of "punishment or a reward," I would
like to see it as an exercise. The future leaders of business will be
the ones that are able to create alliances, maximize resources, work
with various cultures and backgrounds, keep an eye on the ball, achieve
results, and make sustainable investment a core activity. Perhaps all
those bright stars that are doing the heavy lifting will be the ones
to reap the most rewards. They will have the highest level of awareness
and the greatest stamina and enthusiasm, having run the super marathon
handicapped. Remember what happens when you train running with weights
and then finally remove them - you fly.
Happy flying!
Angel of the Month
It is in the context of the above column that I would like to make a departure from the previous angel of the month format. This month I would like to award the angel of the month to all those wonderful committed people working in the financial sector, who are doing or have done the heavy lifting to make sustainability part of the core business activity. The one's that are totally committed, and the ones that who started the process.
Congratulations to: Bettina, Amy, Camilla, Hanns Michael, Helen, Astrid, Babs, Mark, Mary Jane, Bruce, Carlos, Eric, Mariko, Mizue, Tessa, Hazel, Amy, Barbara, Paul, Jean Pierre, Robin, Jeanne, Maria Anne, Paul, Jonathan, Robert, Gabrielle, Margaret, Erik, Bozena, Tonika, Eva, Katie, Monique, Richard, Dirk and many, many, many more angels of the month. You are all great. Congratulations to all of you.
News
SOCIALLY RESPONSIBLE INVESTMENT
World Faiths Redefine Good Investments
Global Investment Managers Expect Social Responsibility to Become Mainstream
ABP Starts Investing
in Third World Micro Credits
Mercer Sees SRI Becoming Mainstream
Green Companies' Stocks Outperform Non-Green Competitors
Going
'Green' Cuts Profits
Project Finance Sparks Change
Social Responsibility Is Out; 'Sin-vesting' Is In
Debauch Your Way to Wealth
Socially Responsible Investing Can Be Lucrative
Shareholder Value is King, Says UK Pension Fund Association
SCREENING & REPORTING
Rating 'Responsible' Funds
Tempest in a Coffee Pot: Starbucks Liquor Deal Splits Socially Responsible Funds
U.S. DOE Releases New Guidelines for GHG Reporting
Denmark’s National Pension Fund to Invest Ethically
To Screen Or Not To Screen?: That May Not Be The Question For Fiduciaries
CORPORATE SOCIAL RESPONSIBILITY
Corporate Responsibility: A Case Study of British Petroleum
Tough Test for Chinese Electronics Suppliers
Bank Facilitates Illegal Logging in Cambodia
Devising Strategies: Corporate Social Responsibility
Ethical Bank Calls for Rivals to be Socially Responsible
Corporate Governance Something to Watch, Especially with Foreign Firms
COPORATE GOVERNANCE
Good Governance, Good Buys
Majority Vote Hot Topic for Boards
New Index Takes Aim at Corporate Governance
SRI Funds Vote Proxies More Conscientiously Than Conventional Funds on Corporate Governance
FTSE and ISS Add Corporate Governance Ratings
Governance League Table Deals Blow to Blue Chips
Changing Attitudes Towards Corporate Governance
CLIMATE CHANGE
U.S. Oil and Gas Companies Bow to Shareholders on Climate
Transport and Households Push UK CO2 Emissions Up
Hybrid Car Sales Rise 81 Percent in U.S.
Project Finance Sparks Change
Starbucks Takes Action to Address Climate Change
Turning Neocons Green
USA: Shareowners Withdraw Climate Change Resolutions at Six Oil Companies
The European Dream: Building Sustainable Development
MISCELLANEOUS
Global Stakeholder Survey on CSR Reporting
What do you think about CSR reports? Your participation will help improve CSR reporting and make sure they fill your information needs.
S&P Warns on Ageing Impact on Country Ratings
Mission-Driven Social Enterprise: Integrating Income and Impact
The Next Wave in US Offshoring
The Motley Fool: Lizard Brains and Investing
Does the animal in you keep you from making smarter investment decisions?
British and Irish Church Trustee Bodies Unite for Ethical Investment
The Argument for the Death of Environmentalism (RMP Req’d)
Publications
Global Stakeholder Panel (GSP) Initiative, Third Survey Results
The 2020 Fund is a philanthropic platform committed to accelerating progress toward a sustainable world. It is hosted at the King Baudouin Foundation (KBF). PDF Download.
The Flight of the Creative Class: The New Global Competition for Talent
By Richard Florida, HarperBusiness, April 2005, Pages: 336, USD$ 25.95
Burgeoning global
technology hotspots. The outsourcing of ingenuity. Rising intolerance. A
faltering education system. Cities torn by inequality. Disconnected political
leadership. According to
Corporate Environmental Governance (PDF Download)
The study is based on an extensive literature review and
15 case studies. Its conclusion is clear: good environmental governance can
benefit financial performance and, conversely, poor performance can have
damaging financial consequences.
