Twenty-four institutional investors representing a total of US$1.6 trillion in assets under management have written to thirty of the world’s largest stock exchanges asking them to address inadequate sustainable reporting. Aviva Investors launched the initiative, which was backed by the UN Principles for Responsible Investment. Aviva mentioned that they aimed to “encourage stock exchanges to consider how to improve the quality of sustainability reporting by the companies that list their exchange.” Of the Twenty-four companies that signed the letter, five of them are Nordic based, or hold offices in the Nordic region.
Several investors and UN officials commented on the situation, in the company press release, below are their comments:
Paul Abberley, CEO of Aviva Investors London, said:
“Markets are driven by information. A lack of information as a result of limited or non-disclosure of ESG data makes it difficult for long-term investors such as us to assess the wider ESG risks and opportunities associated with a company. We believe that stock exchanges can play a crucial role in helping to create more sustainable global capital markets because of their ability to directly influence and monitor the operations and strategy of companies seeking to access the equity markets. This can only be a good thing for investors.”
Georg Kell, Executive Director, UN Global Compact, a key supporter of the initiative, said:
“Many global companies understand that long-term shareholder value is enhanced by both embedding sustainability into their long-term strategy and by disclosing fully their progress. Only when investors have business-relevant information at their fingertips, will they be able to assess one company relative to its peers and allocate capital accordingly. Stock exchanges now have a significant role to play in taking obvious and important next steps to create truly sustainable capital markets.”
James Zhan, Director Division on Investment and Enterprise, UNCTAD, the organizer of last year’s sustainable stock exchange event at the UNCTAD World Investment Forum in, said:
“Good quality ESG reporting among large companies is not uncommon, but the information being reported lacks comparability and usefulness. This investor initiative demonstrates the strong market demand for standardized ESG reporting and greater attention to sustainable development. Stock exchanges can play an important role in mainstreaming best practices nationally, and contributing to international efforts to harmonize ESG disclosure.”
The Twenty Four Companies Include:
Allianz Global Investors Investments Europe, AP7, Australian Council of Super Investors, Aviva Investors, BC Investment Management Corporation (bcIMC), Church of Sweden, Dexia Asset Management Environment Agency Active Pension Fund, EQAO, Ethos Foundation, Fonds de réserve pour les retraites - FRR, Mn Services N.V., NEI Investments, North East Scotland Pension Fund, Pax World Management LLC, RCM a company of Allianz Global Investors, SNS Asset Management, Solaris Investment Management, Sparinvest, "TD Asset Management (TD Asset Management Inc., TDAM USA Inc.)", The Co-operative Asset Management, Trillium Asset Management, Triodos Investment Management B.V., and VIP (Vereinigung Institutionelle Privatanleger) eV. The four service provider signatories of the letter include: Ceres, Ethix SRI Advisors, and Fondation Guilé, Illac Ltd.
I find hard visiting sites that could actually give me this information. Glad that I found it here. Preferably, the Aviva investors might have some valid reasons why they request for sustainable disclosure in some companies involved. Thanks for providing such an astonishing article.
Posted by: vermogensbeheer | February 23, 2011 at 16:04