SRI Monitor

Group pushes for mandatory SRI question

noreply@blogger.com (Doug Watt) — Tue, 21 Feb 2012 18:41:00 +0000

originally published on Advisor.ca

Concerned that advisors aren’t talking to their clients about socially responsible investing, the Social Investment Organization will push for rules mandating advisors to ask about a client’s interest in SRI.

The SRI question could be part of the process to open new accounts with clients or part of the annual review, says SIO executive director Eugene Ellmen.

“We want to have a fuller discussion with IIROC and MFDA on this and put the issue squarely on the table,” Ellmen said in an interview, adding that simply encouraging advisors to ask the question isn’t enough.

“Without mandating it, it’s going to be difficult to convey to advisors that this is something important for them to take up with their clients. It’s not going to be heavy handed; we’re not forcing advisors to push SRI on their clients in any way.”

The SIO first raised this issue in 2010, as part of a submission to IIROC’s client relationship model consultations. IIROC responded by stating that environmental, social and governance (ESG) issues are considerations in determining investment objectives, “an existing required consideration in the rules.”

“IIROC took the position that it’s not necessary to explicitly call on advisors to ask about ESG issues,” Ellmen says. “Our view is that advisors simply are not having this conversation with their clients in spite of the demonstrated demand from clients.”

Ellmen says the social values of a client are fundamentally part of the suitability of an investment, ranking these considerations with risk tolerance and investment horizon.

“If they don’t ask the question, they could be recommending unsuitable investments. It’s in the client’s interest; it’s in the advisor’s interest to do this.”

Ellmen points to other countries which have successfully regulated SRI client inquiries, notably Australia. “They have mandated advisors to look at this for quite some time, and advisors don’t have a problem with it. In fact, it’s part of the reason Australia is a world leader in SRI.”

Gary Godard, a senior vice-president with National Bank Financial in Calgary, says he supports the SIO’s campaign, but doesn’t expect any regulatory changes in the near future. ”I don’t believe it’s up to the regulators to define what constitutes social or ethical considerations. I think the dealers have to take the first step,” he says.

Godard includes the SRI question in clients’ investment policy statements, estimating that he gets a positive response seven times out of ten. “It’s a best practice for advisors to make those reasonable enquiries.”

Ellmen notes that some dealers mandate the SRI inquiry already, such as QTrade and Credential. “From discussions I’ve had with [their] advisors, it’s not an issue, in fact it’s helpful. What we’re asking is that the kind of questions that QTrade and Credential put in their KYC should be mandated across the board.”

As well as discussions with regulators, the SIO plans to reach out to advisors with courses through Advocis and the development of an online course. “We’re also planning on getting out to some financial planning conferences this year to talk about advisor education and the mandated inquiry rule.”

Executive compensation flagged by pension managers

noreply@blogger.com (Doug Watt) — Thu, 16 Feb 2012 17:18:00 +0000

Private sector pension managers are growing impatient with boards that fail to align executive pay with shareholders’ interests, according to the Canadian Key Proxy Voting Survey. The Shareholder Association for Research and Education (SHARE) survey looks at the voting records of 32 investment managers and proxy voting services.

More than one-third of the issues surveyed in 2011 were votes on executive compensation. Participating companies voted against management more often than they voted in favour.

Despite the generally tough stance, a proposal that challenged companies on the growing gap between executive compensation and average wages received support from only 1 in every 3 surveyed firms that voted on it.

“This muted response to the pay disparity proposal indicates that few firms answering the survey have an appetite for calling market norms into question,” said Laura O’Neill, SHARE’s Director of Law and Policy.

The survey examines voting decisions on about two dozen issues that attracted relatively strong opposition from shareholders, SHARE said in a news release.

The survey also includes data on how firms make their voting decisions.

“Responses to the survey provide evidence that Canadian pension fund asset managers are devoting more attention to proxy voting and disclosing their decisions,” said Charley Beresford, Executive Director of the Columbia Institute, a survey sponsor. “Over the past three years, for example, an increasing percentage of firms report that they have proxy guidelines, that they review them every year and that they make them available to the public.”

CBERN issues call for SRI research papers

noreply@blogger.com (Doug Watt) — Thu, 09 Feb 2012 16:22:00 +0000

The Canadian Business and Ethics Research Network and the Principles for Responsible Investment have announced details of the Fifth Annual Academic Conference on Responsible Investment, including a call for SRI research papers.

The conference will take place at the Schulich School of Business at Toronto’s York University October 1-3, 2012. The theme is “Evolution of Responsible Investment: Navigating Complexity.”

“The purpose of the 2012 Academic Conference is to develop understanding of the complexity of institutions, organizations, strategies and processes that make up responsible investment,” CBERN said in an e-mail announcing details of the conference.

Organizers are looking for papers that address SRI-related themes, including investment strategies, shareholder engagement, public policy and regulation.

Online applications are due by April 30.

Teachers outlines position on executive compensation

noreply@blogger.com (Doug Watt) — Thu, 02 Feb 2012 15:42:00 +0000

The Ontario Teachers’ Pension Plan says it does not support advisory votes on executive compensation, preferring instead to let directors make decisions on compensation matters.

“We believe shareholders are better served by having boards comprised of competent directors make, and be accountable to shareholders for, executive compensation decisions,” Teachers said in a letter to 665 public companies in Canada, the United States and the United Kingdom.

Still, Teachers says it will review compensation disclosures to assess the executive compensation decisions made by directors, in a three-step, three-year process.

In the first year, Teachers says it will “generally support management on advisory votes and only follow-up with companies where we have identified significant issues with management’s proposal.”

Teachers says if any issues identified in the first year are not resolved by the second year, it will generally not support management on the advisory vote in that year and will again follow-up with the company, outlining its concerns.

If the concerns remain unaddressed by year three, Teachers will not support the re-election of the chair and/or members of the compensation committee.

Teachers adds that in circumstances where there is no advisory vote and where there are concerns about a company’s compensation practices, it will consider whether or not to support the election of the chair and members of the compensation committee.

Teachers says its ability to analyze a company’s compensation program is dependent upon the quality of disclosure provided in the Compensation Discussion & Analysis (CD&A) section of company meeting materials.

“We encourage issuers to draft their CD&A accurately, completely and in plain language so that it is clear and easily understood by the reader.”

Light and wrong - from the current edition of the Economist

noreply@blogger.com (Sucheta Rajagopal) — Thu, 26 Jan 2012 22:14:00 +0000

Sometimes the Economist gets it exactly right.

Corporate anonymity
Incorporation with limited liability is a privilege. It should not include anonymity
Jan 21st 2012 | from the print edition

LIMITED liability—a commercial venture that protects its shareholders from personal bankruptcy—is one of the greatest wealth-creating inventions of all time. The law allows companies to borrow money, to take risks and to make contracts as if they were people, but without the human beings who own it going bust if things go wrong, as they would in an unlimited partnership. Limited liability allowed Elizabethan adventurers to finance voyages to spice islands; it allows Silicon Valley technologists now to make similarly risky bets.

But limited liability is a concession—something granted by society because it has a clear purpose. It is unclear why in parts of the world anonymity became part of the deal. Efforts to withdraw that unjustified perk deserve to succeed.

In dozens of jurisdictions, from the British Virgin Islands to Delaware, it is possible to register a company while hiding or disguising the ultimate beneficial owner. This is of great use to wrongdoers, and a huge headache for those who pursue them. Anonymously owned companies can buy property, make deals (and renege on them), launch intimidating lawsuits, manipulate tenders—and disappear when the going gets tough. Those who seek redress run into baffling bureaucracy and a legal morass. Seeking real names and addresses means dealing with lawyers and accountants who see it as their job to shield their clients from nosy outsiders.

Attempts to change this have bogged down. The campaigners for reform are hardly anti-corporate zealots: they include the World Bank, the OECD (a rich-country think-tank), and an American senator, Carl Levin, who with the support of the administration has introduced a bill to rein in the antics of states like Delaware (and a bunch of others including Wyoming and Nevada). But progress is slow, with reformers stuck in an argument about who should pay the costs of clarity.

If you strip out the obvious self-interests of the jurisdictions that make money from hiding people’s identity, the main excuse offered is privacy. Hiding your identity can have honest commercial reasons: if everyone knows that Exxon Mobil, BP or another oil major is bidding for a patch of Texas, the price will go up. In some countries and industries revealing ownership is dangerous. Besides, many libertarians would add, private shareholders have the right to be just that.

Except that the rest of us are giving a limited company’s owners a perk. It does not seem unreasonable to ask who are the main recipients of this benefit (with, say, stakes above 5%). Legitimate concerns for owners’ safety, such as biotech firms hunted by animal-rights activists, are rare. In many more cases, such as Caribbean holding companies controlled by well-connected Russians, greater transparency is on the side of democracy and freedom. If the owners of an enterprise really want to preserve their anonymity, they can still opt for an unlimited option—but that will be their risk.

Reform ought to be simple. Anyone registering a limited company should have to declare the names of the real people who ultimately own it, wherever they are, and report any changes. Lying about this should be a crime. Some dodgy places will try to hold out. But anti-money-laundering rules show international co-operation can work. You can no longer open an account at a respectable bank merely with a suitcase of cash. Let the same apply to starting a limited company.

Impact Investing goes mainstream

noreply@blogger.com (Doug Watt) — Tue, 24 Jan 2012 17:16:00 +0000

By Adam Spence, Social Finance

Mark January 24, 2012 in your calendar as the date when impact investing went mainstream in Canada.

Today RBC, the largest of Canada’s Big Five (banks), has joined the growing ranks of major global institutions like Deutsche Bank, and national leaders like Vancity and le Chantier de l’économie sociale in demonstrating real leadership in impact investing.

The bank has just announced a $20 million commitment in an impact investing strategy that will include the creation of a new $10 million RBC Impact Fund and the allocation of $10 million from RBC Foundation’s assets into socially responsible investment (SRI) funds. It is the first initiative of its kind announced by a major financial institution in Canada.

When combined with the tremendous contributions of talent and financial resources from the TMX Group Inc., we have now fully engaged Canada’s largest financial institution and Canada’s largest exchange group to help drive the growth of impact investing in Canada.

What does this mean?

1. There has been a seismic shift of interest in impact investing in Canada.

Even two years ago, the work of impact investing or social finance in Canada was limited to trailblazers in the wilderness trying to do good work while convincing others of the potential of this approach.

After years of effort from a dedicated team at RBC, and many more years of field-building by the team at Social Innovation Generation (SiG), SiG@MaRS, the Canadian Task Force on Social Finance, the MaRS Centre for Impact Investing and others, we have taken impact investing from an interesting cocktail conversation to the top of the business agenda in the main boardroom of RBC Centre.

This move reflects a significant seismic shift, with major players clearly speaking the language of this emerging sector. Today, Gordon Nixon, President and CEO of RBC, made the announcement:

“We have been waiting for the right moment to launch a program of this nature, and the moment is now. We are confident that our initial investment of $10 million in the RBC Impact Fund will not only spark entrepreneurship and innovation in Canada, but also catalyze similar investments from others in the business community. We are also proud to put our money where our values are by investing an additional $10 million of our own funds through the RBC Foundation in socially and environmentally screened funds.”

Gordon Nixon has just taken Gordon Gekko out to the woodshed.

We expect the tremor of the announcement to be felt all along Wellington, King and Bay Streets in Toronto. Look for others to follow suit in the months and year ahead.

2. There is an increase in the number of real investment dollars dedicated toward local, impact ventures in Canada.

We are now seeing real money flow into impact investing in Canada. In 2011, $284 million in debt and equity financing was raised for impact investing. Today’s $20 million investment gets 2012 off to a great start. Local entrepreneurs should be very excited about a new source of impact capital. The fund will finance impact ventures, including those that promote environmental sustainability, advance water resource management or provide opportunities for youth and newcomers to Canada.

3. Canada is getting ready for its leapfrog moment.

Antony Bugg-Levine, CEO of the US-based Nonprofit Finance Fund (NFF), and Jonathan Jenkins, CEO of the UK-based The Social Investment Business, have both spoken about Canada’s potential to leapfrog other countries in impact investing with a concerted effort. We can be global leaders in the movement to mobilize private capital towards solving our most pressing social and environmental problems.

Canada has seen leadership from the community sector, and through major foundations and respected institutions. Today, RBC is leading the way for mainstream finance to participate. Over the coming months, we will look to various levels of government and other corporate leaders to help lead this agenda.

It is going to be a big year. Kudos to RBC for their commitment to driving change.

Article courtesy of Social Finance.ca

Sustainalytics announces tech acquisition

noreply@blogger.com (Doug Watt) — Mon, 23 Jan 2012 17:43:00 +0000

ESG research firm Sustainalytics has announced the acquisition of information technology partner Share Dimension. Claudiu Tanasescu, founder and CEO of Share Dimension, and his seven-person software development team will join Amsterdam-based Sustainalytics, with Tanasescu also becoming managing director of the company’s Romanian office.

"Bringing Share Dimension on board makes perfect sense, having worked together to develop the Sustainalytics platform in recent years," said Sustainalytics CEO Michael Jantzi. "More importantly, the acquisition enhances Sustainalytics' technological capacity to present our insights to clients and support day-to-day responsible investment decision making."

"The entire Share Dimension team is extremely happy to join the Sustainalytics family," added Tanasescu. "It allows us to better leverage our skills to continue to improve the state-of-the-art Sustainalytics Global Platform and to assist our colleagues in fulfilling Sustainalytics' commitment to being trusted advisors to our clients around the world."

SRI Monitor Weekly News Update

noreply@blogger.com (Sucheta Rajagopal) — Mon, 16 Jan 2012 20:34:00 +0000

Is sustainability now the key to corporate success?...read it now
Companies that adopted environmental, social and governance policies in the 1990s have outperformed those that didn't!!!

The Infinite-Planet Approach Won't Solve the European Debt Crisis...read it now
demanding but definitely worth reading when you have time to think it through

The perils of cleantech investing...read it now
The nuts of bolts of a venture capital investment

Sustainability-Minded Investing Makes Dollars and Sense...read it now
a debate between the Hip guy and the Vice guy

compiled with the assistance of Nick Searle

SIO to stick with SRI

noreply@blogger.com (Doug Watt) — Wed, 11 Jan 2012 17:08:00 +0000

Following an extensive review, the Social Investment Organization has decided to retain its name as well as the SRI brand.

“After surveying members of the SIO, the board believes that there is strength in the SIO name and in the SRI brand,” SIO executive director Eugene Ellmen said in a letter to members. “While many members feel that a change is in order, the board believes that SIO and SRI have good and favourable recognition by the industry, media and public.”

“While the brand SRI may not be perfect, it has good recognition, a growing following in the investment industry, and a proud history of achievement,” Ellmen adds.

The term “socially responsible investing” has fallen out of favour in recent years, with advocates instead preferring to use language such as sustainable investing and ESG.

Ellmen concedes there may be some benefits to a name or branding change, but says the board believes that the potential benefits do not outweigh the costs. “The real task at hand is to get out and communicate the industry’s achievements, rather than focusing on branding issues.”

To that end, the SIO will create a new logo and graphic identity for the organization, and re-design its website. In keeping with widespread international practice, the acronym SRI will be used to include “sustainable and responsible investment,” where appropriate, Ellmen says.

The SIO will also lead an effort by national SRI associations in other countries to develop common terminology and definitions as part of a global effort to prepare a harmonized international report on SRI in late 2012.

Cleantech investment seen falling in 2012

noreply@blogger.com (Doug Watt) — Thu, 08 Dec 2011 17:38:00 +0000

Cleantech research and advisory firm Kachan & Co. predicts a decline in worldwide cleantech venture capital investing in 2012.

“There are eggshells across the sector for 2012,” Kachan notes in its year-end report. “Global economic uncertainty in particular is leaving some skeptical about the chances for emerging clean technologies.”

Kachan points to a slowdown in China’s economic engine as well as conflicting government policy signals as potential negative factors for the cleantech sector. “Don’t expect cleantech-friendly U.S. policy leadership in 2012, an election year.”

On the plus side, oil prices are forecast to rise in 2012, corporations are expected to take an even stronger leadership role and investment in solar innovation projects is “still strong and has remained so for years, while other clean technologies have risen and fallen in and out of investment fashion.”

Kachan called for an increase in global cleantech venture investment in 2011 when some others were predicting a cleantech collapse. “We were right. At this writing, total investment for the first three quarters of 2011 is already $6.876 billion, with the fourth quarter to report early in 2012. Given historical patterns, we expect 2011 to close out at a total of $8.8 billion in venture capital invested into cleantech globally. That’d be the highest total in three years, and second only to the highest year on record: 2008.”

“All in all, if you’re a cleantech entrepreneur seeking capital, our advice is brush up that PowerPoint and work the system now… while there’s still a system to work.”

Kachan’s predictions are available here.

Standard Life offers SRI funds for group plans

noreply@blogger.com (Doug Watt) — Wed, 30 Nov 2011 15:29:00 +0000

Investors looking for SRI options in their company pension plans have had precious little to choose from. Standard Life aims to fill that void, announcing that it will now offer four Meritas SRI funds for group savings and retirement plans.

“Employers and their advisors can include these investment options immediately as part of a customized plan or, starting at the end of 2011, through the new Monitored Avenue Portfolio Program™ - Socially Responsible Investment options (MAPP-SRI options),” the insurer said in a release. “Standard Life chose funds for the MAPP-SRI options to provide long-term returns that aim to meet the needs of socially responsible investors and proper diversification amongst asset classes. “

A recent survey conducted for Standard Life found that one-third of Canadian investors said they are "very" or "somewhat" interested in SRIs, and 55% indicated that they would consider SRIs if the return was "as good or better" than other investments.

In September, Standard Life added three Meritas SRI Funds to its family of retail segregated funds.

Caisse invests $25M in Québec wind farm

noreply@blogger.com (Doug Watt) — Tue, 15 Nov 2011 16:38:00 +0000

The Caisse de dépôt et placement du Québec has announced a $25 million contribution to the Seigneurie de Beaupré Wind Farms project. The consortium - providing $725 million in financing to the project - includes Boralex, Gaz Metro and Valener. The cash will be used to construct and operate a 272MW wind farm in Québec, one of the largest wind energy development sites in the province.

“This financing enables us to support established business partners and offers us a long-term opportunity ideally aligned to our investment strategy,” said Marc Cormier, executive vice-president, fixed income, the Caisse. “With our investment in this project, we are contributing to a renewable energy initiative in Québec while generating a return that meets the objectives of our depositors.”

The first phase of the project will consist of 126 wind turbines, scheduled for start-up in December 2013.

He blinded me with science...

noreply@blogger.com (Sucheta Rajagopal) — Wed, 02 Nov 2011 17:31:00 +0000

Speaking to a packed house at U of T's University College yesterday, David Schindler presented scientific data to back up claims of the devastation wreaked by oil sands development.

A noted limnologist and environmental activist, Dr. Schindler's presentation, entitled The Oil Sands: Economic Saviour or Environmental Disaster, was filled with results of experiments and slides of PAHs (polycyclic aromatic hydrocarbons). As someone with limited knowledge of chemistry and biology, I couldn't keep up with the details so I will give you what I took away as the big picture conclusions. Dr. Schindler kindly offered to send the presentation deck out to those who were interested, so you can contact him for a copy.

oil sands development has been too rapid for monitoring or regulation to keep up. Cumulative Effects Assessments need to be done in a more thorough manner to document what is really happening.

Cancer incidence is higher in Fort Chipewyan. Check out the related article in This magazine .

an experiment he conducted melting snow from the frozen Athabasca River and analyzing it showed that contaminants were usually much higher in sites impacted by industry.

tributaries in watersheds that were more disturbed had higher element concentrations than tributaries in less disturbed watersheds.

it is possible that land around the oil sands can never be properly reclaimed, oil company claims notwithstanding. This one really got to me and I will try to follow up. Dr. Schindler believes that the type of planting being done, wooded fens, will not be sustainable over the long term due to the salinity of the soil and water.

He suggested some logical next steps. First, a detailed study of fish health and effects of contaminants on reproduction and survival. Second, a detailed health study of people living in the area. And finally, better monitoring, to be done by Environment Canada, the only agency with the capacity to do an effective job.

Dr. Schindler stated there is very little possibility that nothing (meaning no contaminants) is flowing into the Athabasca, and ended with the question, 'Why do we have to proceed with development much faster than we know what we are doing?'

Are companies responsible for creating jobs?

noreply@blogger.com (Sucheta Rajagopal) — Fri, 28 Oct 2011 16:34:00 +0000

From today's Wall Street Journal. Check it out on the web for a video and a lot of right wing comments. Maybe add some balanced comments?

For anyone stepping gingerly through the encampment of Occupy Wall Street in Manhattan, it might be easy to dismiss the protest as just a living diorama of a 1960s Happening. That is, were it not for its intriguing challenge to American business, and Milton Friedman.

Let's stipulate that the demonstrators have a fuzzy agenda. It's a smorgasbord of gripes ranging from income inequality to poor housing to executive pay—viewed as out of touch with executive value, which maybe we should stipulate too. The protest is diffuse, and young, and cohabitating under tarps. A passerby guiding his three children through the thicket of tents is overheard saying to his wife: "Let's get outta here before the kids see something they shouldn't."

But what about one of the group's chief beefs: that business is falling short of its social responsibility, including creating jobs at home? Some politicians have given a nod of legitimacy to the protests. A CNN poll found that 32% of Americans favor the demonstrations while many others are still making up their minds.

Milton Friedman, the Nobel laureate economist, blasted the very idea of corporate social responsibility four decades ago, calling it a "fundamentally subversive doctrine." Speaking for many capitalists then and now, he said, "there is one and only one social responsibility of business—to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game."

Companies shouldn't spend profits on unrelated job creation or social causes, he said. That money should go to shareholders—the owners of the companies. Pronouncements about corporate social responsibility, he added, are the indulgence of "pontificating executives" who are "incredibly shortsighted and muddleheaded in matters that are outside their businesses." And that indulgence can lead to inefficient markets.

What then to make of Howard Schultz, the chief executive of Starbucks, who in a letter earlier this month to fellow business leaders asked them to help "get Americans back to work and our economy growing again."

He described Starbucks's own growth and hiring plans—a net of several thousand new jobs—and announced a $5 million donation by the Starbucks Foundation to a group that helps finance local businesses. Starbucks will also encourage customers and employees to donate. He's calling the program "Create Jobs for USA." Occupy Wall Street would like this.

In a blog post last week, Mr. Schultz elbowed aside Mr. Friedman's triumph of profit: "Companies that hold on to the old-school, singular view of limiting their responsibilities to making a profit will not only discover it is a shallow goal but an unsustainable one," the post on the Harvard Business Review website read. "Values increasingly drive consumer and employee loyalties. Money and talent will follow those companies whose values are compatible."

Occupy Wall Street has challenged American companies to create jobs, not just profits, and that appeals to some CEOs. Is this just window dressing, a new spin on PR and marketing? A group of CEOs and executives from large companies, including Exxon, Cisco and McDonald's, echo Mr. Schultz's view, though perhaps with a tighter link between largess and corporate self interest.

The group, through their New York-based Committee Encouraging Corporate Philanthropy, highlights projects such as Wal-Mart's effort to reduce packaging in its supply chain (good for the environment, good for Wal-Mart's costs); IBM's "Service Corps," which sends young executives to help developing countries (good for the countries, good for scouting for future IBM business) and PepsiCo's program to train corn farmers in Mexico (good for the farmers, good for PepsiCo, which needed an improved supply of corn).

To do it right, the group says, companies should pick issues that "are integral to the achievement of larger business goals...issues that drive growth or reduce costs" and also help society. That's a higher bar than pure charity.

John Mackey, co-chief executive of Whole Foods, goes a bit farther. In a duel with Mr. Friedman in an issue of Reason magazine in 2005, he wrote: "From an investor's perspective, the purpose of the business is to maximize profits. But that's not the purpose for other stakeholders—for customers, employees, suppliers and the community. Each of those groups will define the purpose of the business in terms of its own needs and desires, and each perspective is valid and legitimate."

In that exchange, Mr. Friedman acknowledged the value of corporate goodwill in a community—and tending to it—and counseled business to stick to a tight definition of shareholder interest.

Mr. Friedman died the following year, but clearly his ideas on the subject didn't. Economic growth creates jobs, not the other way around, his adherents say. And it helps if government regulates less.

"Jobs are an input, not an output; they're a cost of doing business, not a goal of doing business," says William Frezza, a Boston-based venture capitalist and fellow at the Competitive Enterprise Institute.
"From the perspective of defending capitalism, if you accept the premise of your opponent that business has to give back to society, you've already lost," he says. "To put sack cloth and ashes on—you've delegitimized capitalism, which is the goal of the protesters. Businesses give back to society every day by pleasing their customers and employing their employees. There's nothing business owes other than selling the best product at the best price."

Down at the demonstration, they've broken out the incense and are starting the drum-athon again.

Over at Starbucks, Mr. Schultz is counseling his fellow CEOs that "business leaders have to step up and do our part."

And across America, the 14 million unemployed are waiting for someone to be right.

Write to John Bussey at john.bussey@wsj.com

Investors need more information on SRI: survey

noreply@blogger.com (Doug Watt) — Thu, 27 Oct 2011 18:19:00 +0000

A new survey reveals that only 10% of Canadian investors have made a socially responsible investment. Just 15% of those surveyed by Ipsos Reid for Standard Life said they knew a lot or a fair bit about SRI. Four in ten investors reported they had never heard of SRI and 43% said they were aware of SRI, but knew little about it.

"SRIs can become a much more important part of investing for both investors and advisors alike, but first investors must have more information and better accessibility to this type of investment,” says Standard Life’s Anna del Balso. “Advisors who take the time to understand their clients' environmental and social values and provide investment opportunities that align with those beliefs may achieve sales and reputational gains."

Despite the lack of awareness, investors are generally favourable to SRI, the survey suggests. One third said they were very or somewhat interested in SRI and 55% indicated that they would consider SRI if the return was "as good or better" than other investments.

For those already invested in SRI, satisfaction levels are high. Ninety-two per cent said they were satisfied with the performance of their responsible investments and 70% said they were equally satisfied with the performance of their SRIs compared to their other investments.

Eighty per cent of advisors said they were satisfied with the performance of SRIs under their management. The majority of Canadians (54%) who have discussed SRI with their advisor raised the topic themselves.

“Despite not raising the topic of SRIs more spontaneously with investors, once the subject has been raised, in only 15% of instances does it result in a negative commentary from the advisor, and 61% of cases result in both a positive commentary and a recommendation to purchase,” the survey notes.

Ipsos Reid surveyed 1,029 adults and 537 advisors in August and September of 2011.

Anothe female CEO

noreply@blogger.com (Sucheta Rajagopal) — Wed, 26 Oct 2011 19:47:00 +0000

News that Virginia Rometty is slated to become the new CEO of IBM has made headlines.
'A new record has been set for female leadership: More women are slated to take the reins of Fortune 500 companies than ever before.' trumpets USA Today.
'In naming female CEO, IBM passes gender milestone' says the San Francisco Chronicle

The sad truth behind these claims is that with the addition of Rometty, a mere 17 Fortune 500 companies will be led by women.

According to a recent Catalyst report, in Canada things are no better. Twenty six of the Financial Post 500 companies are headed by women, but this includes government entities and private companies. And still, this is only 5.2%.

Last year, the Globe and Mail ran a series of articles on women and power, and concluded 'Canada is a laggard when it comes to promoting women as leaders of organizations. This should not be seen as a women’s issue, but as a matter of competitiveness and innovation. By shutting out more than half the population, Canadian companies, government agencies, businesses and institutions are robbing themselves of talent.'

You hear that, guys?

Watch these videos for advice from 10 Canadian women in power on how to get to the top.

SRI Monitor Weekly News Update

noreply@blogger.com (Sucheta Rajagopal) — Mon, 24 Oct 2011 16:53:00 +0000

Top U.S. court to hear Shell human rights case from Nigeria...read more

Ceres:Proxy voting for sustainability...read more

Vinod Khosla Prepares To Implement His "Fail Strategy' With New $1 billion Fund...read more

Starbucks concerned world coffee supply is threatened by climate change...read more

‘Changing the Game’ in Petrochemical-based Materials...read more

and watchProtei, Open Hardware Oil Spill Cleaning Sailing Robot

SRI Monitor Weekly News Update

noreply@blogger.com (Sucheta Rajagopal) — Mon, 17 Oct 2011 16:57:00 +0000

Alberta divests itself of investments viewed as unethical by Norway's standards...read more

Getting the Most Out of GRI and Sustainability Reporting...read more

Will new LEED standards allow for clearcut timber?...read more

The green jobs enigma...read more

CEOs Need to See Through Walls...read more

compiled with the assistance of Nick Searle

Canadian corporations addressing carbon challenge: report

noreply@blogger.com (Doug Watt) — Wed, 12 Oct 2011 22:05:00 +0000

Canada’s largest corporations are paying greater attention to carbon-related issues, such as climate change and greenhouse gas emissions, according to the Carbon Disclosure Project’s annual report on Canada.

The CDP sent its annual investor information request form to 200 of Canada’s largest corporations – 108 firms responded. Three-quarters of respondents reported having integrated climate change into their overall business strategy, “confirming a commitment to long-term, sustainable growth amidst regulatory uncertainty and the physical effects of a changing climate.”

In addition, over 85% of reporting companies are disclosing climate change and GHG emissions performance either via their annual reports or other communications. “These results indicate climate change is an important consideration in Canadian companies’ future strategic planning,” the report states.

Despite the increased disclosure, only one-third of companies have set active GHG reduction targets and only 30% report having dedicated budgets for energy efficiency or emissions reduction activities.

Ninety-one of the 108 companies reported a cumulative 425 emission reduction activities that were either underway or completed, demonstrating that companies are planning and implementing energy reduction initiatives to reduce this growing operating expense, the report said.

More than 85% of respondents reported that senior managers or board committees have responsibility for climate change, up from 75% in 2010 and indicating an increasing trend in senior management engagement in climate change governance.

SRI Monitor Weekly News Update

noreply@blogger.com (Sucheta Rajagopal) — Mon, 03 Oct 2011 19:35:00 +0000

Barrick’s Tanzanian project tests ethical mining policies...read more

Mining is Congo’s best hope of prosperity but also its biggest worry...read more

The Toxic Gold Mining Industry Goes Fairtrade...read more

SRI in the Rockies happening now. Watch and listen to presentations...read more
Shared Value Capitalism: A Socially Responsible Way To Improve Quality And Retain Customers...read more

Half of Multinationals to Choose Suppliers Based on CO2 Emissions...read more

compiled with the assistance of Nick Searle

Sustainalytics partners with Korean firm

noreply@blogger.com (Doug Watt) — Wed, 28 Sep 2011 15:15:00 +0000

SRI research firm Sustainalytics is moving into the Korean market, today announcing a strategic partnership with Sustinvest, an investment research and consulting company.

Together, the two firms will provide responsible investors in Korea with a global environmental, social and governance analysis that is informed by knowledge of local markets, Sustainlytics said in a news release.

"Korea is a vibrant market for responsible investment," said Michael Jantzi, Sustainalytics CEO. "We welcome the opportunity to align ourselves with the market leader. Our clients will benefit by having enhanced coverage and analysis of Korean securities through the Sustainalytics' platform and direct access to ESG analysts in the region."

"We are very pleased to enhance our working relationship with Sustainalytics. The ESG market in Korea is growing and we are glad to be able to provide enhanced global coverage to responsible investors here," added Sustinvest CEO Youngjae Ryu.

In addition to enhanced research capabilities, Sustainalytics and Sustinvest will be exploring new products and services for the Korean market, including an ESG ranking of Korean companies that will be published in 2012.

Sustinvest is the first SRI research and consulting firm established in Korea.

Fund firms file class action against Sino-Forest

noreply@blogger.com (Doug Watt) — Tue, 27 Sep 2011 15:13:00 +0000

Northwest & Ethical Investments and Comité syndical national de retraite Bâtirente inc. have launched a class action suit against Sino-Forest Corporation.

The suit, which seeks $5.8 billion in damages, was filed on behalf of investors who purchased Sino-Forest shares or notes from 2004 to 2011.

“NEI Investments has a fiduciary duty to protect the interests of our investors and in commencing this action we believe we are acting strongly to uphold the integrity of the investment industry,” said Bob Walker, vice-president, Ethical Funds, NEI Investments in a statement. “In our longstanding history of engaging with companies to promote responsible corporate governance practices, this is the first time NEI Investments has taken this last-resort approach to protect investors.”

“When our members suffer losses in their retirement plan and those losses result from the type of misconduct alleged in the statement of claim, it is our duty to assist in seeking remedies from those who bear responsibility,” added Batirente’s Daniel Simard.

Sino-Forest’s shares have been frozen amidst allegations that the Chinese forestry company exaggerated its revenues and timber holdings in China.

SRI Monitor Weekly News Update

noreply@blogger.com (Sucheta Rajagopal) — Mon, 26 Sep 2011 14:45:00 +0000

Bill Gates backs financial transaction tax to aid poor...read more

Siemens to quit nuclear industry...read more

Oil-sands workers press MPs to oppose ‘wrongheaded’ Keystone pipeline...read more

Ikea: Stock Market Pressures Hinder Sustainability...read more

Elements of Islamic Finance...read more

compiled with the assistance of Nick Searle

Fracking Under Pressure

noreply@blogger.com (Sucheta Rajagopal) — Thu, 15 Sep 2011 14:30:00 +0000

This new report by Dayna Linley, global energy sector lead for Sustainalytics, clearly outlines what’s going on in the world of fracking today, and what responsible investors should be aware of. Fracking is the colloquial term for hydraulic fracturing, that is, pumping fluids (usually water and chemicals) into a geologic formation at high pressure to release the natural gas (shale gas).

The report begins with some background on global energy demand, which is constantly increasing and driving the shift to unconventional oil and gas. ‘Due to restricted access to known reserves, many public companies are shifting their operations into higher risk areas and into unconventional oil and gas deposits. High-risk regions are generally characterized by social volatility or environmental sensitivity, while unconventional deposits are those that either contain heavier or more contaminated oil or gas, or that occur in less accessible reservoirs or rocks.’ This is followed by an explanation of the potential impacts of shale gas extraction on air emissions, land and water.

What should the socially responsible investor do? Investors should be aware of the risks, primarily reputational risk, regulatory risk and litigation risk, and should engage with companies to encourage the adoption and ongoing development of best practices. ‘Oil and gas companies, working with their energy service providers, should evaluate local conditions and regulatory frameworks to determine locally appropriate best practices to limit impacts to the environment, local populations and the bottom line.’

The section on best practices details some best practices: transparency, baseline water testing, use of green products, process changes regarding fluid management and minimization, GHG and air emission reduction and well integrity testing, contractor management and community engagement. Included are examples of corporate initiatives in each of these areas.

A final caveat - ‘…responsible investors should view shale gas development in the context of the broader need to shift our economy away from dependence on fossil fuels. Shale gas development, even with best practices in place, does nothing to contribute to this shift. Therefore, while pushing for best practices, responsible investors should push even harder for investment in renewable, sustainable forms of energy and for regulatory environments that incentivize such investment.’

See the sidebar for more stories on fracking.
Read the full Sustainalytics report here.

Teachers becomes UNPRI signatory

noreply@blogger.com (Doug Watt) — Wed, 14 Sep 2011 14:41:00 +0000

The Ontario Teachers Pension Plan has signed on to the United Nations Principles for Responsible Investment. Teachers joins a number of other major Canadian pension plans which are UNPRI signatories, including the Canada Pension Plan Investment Board, the Caisse de dépôt et placement du Québec, the British Columbia Municipal Pension Plan and OPSEU Pension Trust.

More than 200 new signatories have joined the UNPRI in the last 12 months, raising the total number of signatories to 900, managing assets worth nearly US$30 trillion.

A recent survey of UNPRI signatories found that 94% of asset owners and 93% of investment managers have a responsible investment policy, pointing to what the UNPRI calls a “growing commitment to responsible investment.”

Teachers has more than $107 billion in assets and is the largest single-profession pension plan in Canada, administering the pensions of nearly 300,000 active and retired Ontario teachers.

Video:
Dr. James Gifford, Executive Director, UN-backed Principles for Responsible Investment, in conversation with Teachers CEO Jim Leech.