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Long-termism & ESG

UKSIF supports the UK finance sector to lead the world in advancing sustainable development through responsible investment and other financial services.

We assist our members to deepen their integration of environmental, social and governance factors into investment decision-making and stewardship of assets. We also encourage clients and policymakers to address the underlying issues that drive dysfunctional investment approaches. We support improvements in customer demand, governance, accountability and transparency across the investment chain.

For your action:

European SRI Study 2014 – survey now open!
UKSIF and Eurosif are proud to invite you to join the 2014 study of the SRI market.  This biennial Eurosif SRI Study is the only comprehensive survey of the European SRI market. Data from these Studies is used extensively by the industry, the press and academics. Please email susanna.mattingly@uksif.org to take part.

 

Highlights of UKSIF’s work:

UKSIF Welcomes MPs’ Call for Greater Focus on Sustainable Investment (25 July 2013)
UKSIF was pleased to see that our efforts – alongside those of others such as Caroline Lucas MP – to get the MPs’ Pension Fund to sign up to the UK Stewardship Code were vindicated as a Business, Innovation and Skills Select Committee report stated this intention. (See also UKSIF’s letter with Caroline Lucas MP urging the PCPF to commit to responsible investment (20 September 2012))

UKSIF celebrates SRI & Sustainability Survey Awards (12 July 2013)
The results of the 11th annual Thomson Reuters Extel/UKSIF SRI & Sustainability Survey Awards were announced in Summer 2013.

UKSIF’s call for clarity over resource security and growth (11 July 2013)
UKSIF co-signed a letter to the Treasury Select Committee which called for an inquiry into why senior Treasury economists apparently blocked a major Government review into resource depletion, climate change and UK growth prospects. The letter was signed by a number of major investment institutions, the Aldersgate Group and Friends of the Earth.

UKSIF’s response to European Commission consultation on the Green Paper on Long-term Financing (4 July 2013)
UKSIF welcomed the European Commission’s decision to “initiate a broad debate about how to foster the supply of long-term financing and how to improve and diversify the system of financial intermediation for long-term investment in Europe” along with their focus on long-term investment in its consultation on UCITS last year, but made recommendations to improve the Green Paper.

UKSIF Chief Executive Gives Evidence to Kay Review Parliamentary Inquiry (5 March 2013)
Penny Shepherd MBE, then Chief Executive of UKSIF, gave evidence to the Business, Innovation and Skills Select Committee as part of its inquiry into The Kay Review of UK Equity Markets and Long-Term Decision Making. Watch a recording of the session here.

Kay Review offers path to rebuild public trust in financial markets, says UKSIF (23 July 2012)
UKSIF welcomed the ‘innovative and practical’ analysis and ‘pragmatic’ recommendations of the ‘Kay Review of Equity Markets and Long-Term Decision Making’. This independent review was commissioned by the UK Government. It analysed how well equity markets support the long-term performance of UK companies and enable savers to benefit from corporate activities. UKSIF fed into the review at the consultation stage.

UKSIF’s Stewardship Code consultation response calls for The Pensions Regulator to encourage stewardship (16 July 2012)
UKSIF’s response to the Financial Reporting Council’s (FRC) consultation of the UK Stewardship Code recommended that the Pensions Regulator should encourage adoption of the Code by occupational pension funds.

Start here:

Sustainability in Investment: We Need a Bigger Boat (September 2012)
Towers Watson considers sustainable investing ‘in its broadest sense, incorporating ESG (Environmental, Social, Governance) but going beyond to consider the large inter-generational issues that institutional funds need to take into account.’ The report draws on research undertaken in collaboration with Oxford University to explore practical solutions and processes to help investors to become sustainable investors.

The Climate Change Report: The impact of climate change on strategic asset allocation (Update: January 2012)
Mercer’s sub-site brings together their report ‘Climate Change Scenarios – Implications for Strategic Asset Allocation’ with associated material including an update on how investors are applying the results of the scenarios study.

European SRI Study 2012 (October 2012)
This definitive biannual report is produced by Eurosif in partnership with national sustainable investment membership associations. The latest study gives detailed figures for the most common sustainable and responsible investment strategies adopted by European investors and shows that each of these has outgrown the overall market since 2009.

Global Sustainable Investment Review (January 2013)
The Global Sustainable Investment Review 2012 is the first report to collate the results from the market studies of regional sustainable investment forums from Europe, the US, Canada, Asia, Japan, Australia and Africa. It represents both a global movement for change in financial markets and a local response to unique cultural, social and economic forces.

Additional resources:

The Emerging Markets Disclosure Project: Lessons Learned (October 2012)
The five-year-long Emerging Markets Disclosure Project (EMDP) was an initiative of the US SIF Foundation to improve ESG reporting in emerging markets and aid investor/stakeholder engagement with companies. This final report documents the lessons learned.

The Enlightened Shareholder: Clarifying Investors’ Fiduciary Duties (March 2012)
This report from FairPensions highlights the case for clarifying the fiduciary duties of investors. It builds on the 2011 report, ‘Protecting our Best Interests: Rediscovering Fiduciary Obligation’ whichexamined fiduciary duty as a barrier to long-term sustainable investment.

FRC website: The UK Stewardship Code
The Financial Reporting Council (FRC) website offers information about the UK Stewardship Code and lists signatory organisations.

The Future of Investment: Sustainable Index Investing (September 2010)
This report in UKSIF’s ‘Future of Investment’ series considers the use of indexes that incorporate sustainability criteria.