morning.rome.04

463 views

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
463
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
2
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide
  • Eurosif was initiated by five national SIFs [partners slide] from France, Germany, Italy, Netherlands and the UK. I am not going to read out I’m afraid!   UKSIF has been going over ten years and VBDO is also fairly established. However the Italian, French and German SIF are very new – reflecting the state of their equity markets.   Over the next few years we anticipate SIFs developing in Spain Belgium and possibly Sweden. And they would be included on the Board that governs Eurosif.   We aim to compliment and work with the national SIFs focusing on transnational agendas.   We will be focusing on equity investments, not below market rate investments as some of the national SIFs may do, as already a European association for community finance – INAISE. Similarly we will not be a corporates association as there are already other pan-European organisations within this area, such as the European Business Foundation, CSR Europe etc.   We have been funded by the EC DG for Employment and social affairs and membership fees.
  • Institutions are searching for ways that SRI can be incorporated into their financial strategies UK USS Competitition Dutch market PGGM, ABP Engagement strategies are not clear
  • morning.rome.04

    1. 1. <ul><ul><li>Eurosif </li></ul></ul><ul><ul><li>2003 Review of Mission and Activities </li></ul></ul><ul><ul><li>Matt Christensen </li></ul></ul><ul><ul><li>Advisory Council Meeting </li></ul></ul><ul><ul><li>Morning Session </li></ul></ul><ul><ul><li>February 6, 2004 </li></ul></ul><ul><ul><li>Rome </li></ul></ul>
    2. 2. Today’s Programme <ul><ul><li>Morning Session 9:00 – 12:30 </li></ul></ul><ul><ul><ul><li>Member Introduction </li></ul></ul></ul><ul><ul><ul><li>SIF Presentations </li></ul></ul></ul><ul><ul><ul><li>Eurosif Mission and 2003 Activities </li></ul></ul></ul><ul><ul><ul><li>Q&A </li></ul></ul></ul><ul><ul><li>Lunch 12:30 – 13:45 </li></ul></ul><ul><ul><li>Afternoon Session 14:00 – 15:30 </li></ul></ul><ul><ul><ul><li>EU Lobbying/Int’l Networking </li></ul></ul></ul><ul><ul><ul><li>Pension Programme </li></ul></ul></ul><ul><ul><ul><li>Research </li></ul></ul></ul><ul><ul><ul><li>SRI Database </li></ul></ul></ul><ul><ul><ul><li>Q&A </li></ul></ul></ul>Coffee Break
    3. 3. Agenda <ul><ul><li>Background on Eurosif </li></ul></ul><ul><ul><li>Activities in 2003 </li></ul></ul><ul><ul><li>Key Facts and Questions about European SRI </li></ul></ul>
    4. 4. Aims of Eurosif <ul><ul><li>Provide an active, multi-stakeholder network for organisations interested in promoting SRI in Europe </li></ul></ul><ul><ul><li>Initiate and publish research about legislation, policies and practices relating to the effective integration of social, environmental and ethical (SEE) issues in the European investment market </li></ul></ul><ul><ul><li>Encourage transparency , disclosure and active ownership, with regard to corporate practice and governance on social, environmental and ethical issues </li></ul></ul><ul><ul><li>Support the expansion of National SIFs (Social Investment Forums) </li></ul></ul>
    5. 5. Building the Fund Management Value Chain <ul><li>Fund Management </li></ul><ul><li>Asset managers </li></ul><ul><li>In-house investors </li></ul><ul><li>Banks </li></ul><ul><li>Companies </li></ul><ul><li>Multinationals </li></ul><ul><li>SME’s </li></ul><ul><li>Start ups/new co </li></ul><ul><li>Investors </li></ul><ul><li>Pension funds </li></ul><ul><li>State funds </li></ul><ul><li>Insurance </li></ul><ul><li>Charities </li></ul>ACTORS INFORMATION <ul><li>Non-Financial </li></ul><ul><li>Research, Ratings </li></ul><ul><li>Multi-lateral (OECD, etc) </li></ul><ul><li>NGOs, Trade Unions </li></ul><ul><li>Financial </li></ul><ul><li>Research, Ratings </li></ul><ul><li>Sector Comps </li></ul>EU Institutions (Commission and Parliament) GOVERNMENT
    6. 6. Fund Management – SRI Focus <ul><li>Fund Management </li></ul><ul><li>Asset managers </li></ul><ul><li>In-house investors </li></ul><ul><li>Banks </li></ul><ul><li>Investors </li></ul><ul><li>Pension funds </li></ul><ul><li>State funds </li></ul><ul><li>Insurance </li></ul><ul><li>Charities </li></ul>ACTORS INFORMATION <ul><li>Non-Financial </li></ul><ul><li>Research, Ratings </li></ul><ul><li>Multi-lateral (OECD, etc) </li></ul><ul><li>NGOs, Trade Unions </li></ul>EU Institutions (Commission and Parliament) GOVERNMENT
    7. 7. Eurosif in the European SRI Context <ul><li>Fund Management </li></ul><ul><li>Asset managers </li></ul><ul><li>In-house investors </li></ul><ul><li>Banks </li></ul><ul><li>Investors </li></ul><ul><li>Pension funds </li></ul><ul><li>State funds </li></ul><ul><li>Insurance </li></ul><ul><li>Charities </li></ul>ACTORS INFORMATION <ul><li>Non-Financial </li></ul><ul><li>Research, Ratings </li></ul><ul><li>Multi-lateral (OECD, etc) </li></ul><ul><li>NGOs, Trade Unions </li></ul>EU Institutions (Commission and Parliament) GOVERNMENT <ul><ul><li>Lobbying </li></ul></ul><ul><ul><li>Intermediary for SRI players </li></ul></ul><ul><ul><li>Sector Initiatives </li></ul></ul><ul><ul><li>Research and guidelines </li></ul></ul><ul><ul><li>Information </li></ul></ul><ul><ul><li>Data on SRI sector for members </li></ul></ul><ul><ul><li>Networking through Forum </li></ul></ul>EUROSIF EUROSIF EUROSIF
    8. 8. Future Elements for Eurosif and SRI… <ul><li>Fund Management </li></ul><ul><li>Asset managers </li></ul><ul><li>In-house investors </li></ul><ul><li>Banks </li></ul><ul><li>Investors </li></ul><ul><li>Pension funds </li></ul><ul><li>State funds </li></ul><ul><li>Insurance </li></ul><ul><li>Charities </li></ul>ACTORS INFORMATION <ul><li>Non-Financial </li></ul><ul><li>Research, Ratings </li></ul><ul><li>Multi-lateral (OECD, etc) </li></ul><ul><li>NGOs, Trade Unions </li></ul>EU Institutions (Commission and Parliament) GOVERNMENT Corporate Governane Financial <ul><ul><li>Lobbying </li></ul></ul><ul><ul><li>Intermediary for SRI players </li></ul></ul><ul><ul><li>Sector Initiatives </li></ul></ul><ul><ul><li>Research and guidelines </li></ul></ul><ul><ul><li>Information </li></ul></ul><ul><ul><li>Data on SRI sector for members </li></ul></ul><ul><ul><li>Networking through Forum </li></ul></ul>EUROSIF EUROSIF EUROSIF
    9. 9. The National SIFs Support Eurosif Eurosif VBDO (NL) UK SIF FFS (IT) FNG (DE) FIR (FR) New National SIF : Belgium New National SIF : Sweden US SIF ASRIA SIO (CA) EIA (AUS) Global SIF network
    10. 10. Eurosif Members/Sponsors, February 2004 <ul><li>Eurosif, through its membership, represents assets totalling over € 600 billion euros </li></ul><ul><ul><li>ABP, Netherlands </li></ul></ul><ul><ul><li>Amnesty International, UK </li></ul></ul><ul><ul><li>Calvert, USA </li></ul></ul><ul><ul><li>Det Norske Veritas (DNV), Norway </li></ul></ul><ul><ul><li>Dexia, Belgium </li></ul></ul><ul><ul><li>ESADE, Spain </li></ul></ul><ul><ul><li>Ethibel, Belgium </li></ul></ul><ul><ul><li>Ethical Investment Research Service (EIRIS),UK </li></ul></ul><ul><ul><li>Ethos, Switzerland </li></ul></ul><ul><ul><li>Fédération des Experts Comptables Européens(FEE), Belgium </li></ul></ul><ul><ul><li>FTSE, UK </li></ul></ul><ul><ul><li>Henderson Global Investors, UK </li></ul></ul><ul><ul><li>Insight Investment, UK </li></ul></ul><ul><ul><li>ISIS Asset Management, UK </li></ul></ul><ul><ul><li>Jupiter Asset Management, UK </li></ul></ul><ul><ul><li>Kinder, Lydenberg, Domini & Co., USA </li></ul></ul><ul><ul><li>Nextra (Grupo Intesa), Italy </li></ul></ul><ul><ul><li>Oikocredit, The Netherlands </li></ul></ul><ul><ul><li>Pioneer Investments, Italy </li></ul></ul><ul><ul><li>SAM, Switzerland </li></ul></ul><ul><ul><li>Sarasin, Switzerland </li></ul></ul><ul><ul><li>Standard Life Investments, UK </li></ul></ul><ul><ul><li>Trade Union Advisory Committee, International </li></ul></ul><ul><ul><li>Triodos Bank, The Netherlands </li></ul></ul><ul><ul><li>UBS AG, Switzerland </li></ul></ul><ul><ul><li>Universiteit Nyenrode (EIBE), The Netherlands </li></ul></ul><ul><ul><li>Vigeo, France </li></ul></ul><ul><ul><li>World Wide Fund for Nature (WWF-UK), UK </li></ul></ul>
    11. 11. Eurosif Members/Sponsors Joining in 2004 <ul><li>New members to join in 2004 include </li></ul><ul><ul><li>ABP Holland </li></ul></ul><ul><ul><li>HSBC Pan-European </li></ul></ul><ul><ul><li>Pioneer Italy </li></ul></ul><ul><ul><li>Sarasin Switzerland </li></ul></ul><ul><ul><li>Calvert US </li></ul></ul><ul><ul><li>TUAC International </li></ul></ul><ul><ul><li>DNV Norway </li></ul></ul><ul><ul><li>Econ. Sin Front. Spain </li></ul></ul><ul><ul><li>West LB Germany </li></ul></ul><ul><ul><li>Insead Bus School France </li></ul></ul><ul><ul><li>Growth in assets </li></ul></ul><ul><ul><li>Enables greater role to act as voice at EU level </li></ul></ul><ul><ul><li>Multi-stakeholder </li></ul></ul><ul><ul><li>Inclusion of brokers and pension funds increases breadth </li></ul></ul><ul><ul><li>Geographic spread </li></ul></ul><ul><ul><li>10 European countries </li></ul></ul><ul><ul><li>US representation </li></ul></ul><ul><ul><li>International bodies </li></ul></ul>Comments
    12. 12. Existing and Future Governance of Eurosif <ul><ul><li>Dutch Foundation </li></ul></ul><ul><ul><li>French Non-Profit Association </li></ul></ul><ul><ul><li>SIFs have voting rights </li></ul></ul><ul><ul><li>Members have influence through Advisory Council </li></ul></ul><ul><ul><li>Direct Sponsorship of Eurosif </li></ul></ul><ul><ul><li>SIFs have no financial support requirements </li></ul></ul><ul><ul><li>SIFs retain voting rights </li></ul></ul><ul><ul><li>Members retain influence through Advisory Council </li></ul></ul><ul><ul><li>Direct and Indirect Sponsorship </li></ul></ul><ul><ul><li>European SIFs meet minimum financial support requirements </li></ul></ul><ul><ul><li>No limit to size of Board </li></ul></ul><ul><ul><li>No limit to Ex Com terms </li></ul></ul><ul><ul><li>Board limit of 15 SIFs </li></ul></ul><ul><ul><li>Ex Com terms limited to 2 years </li></ul></ul>2001-2004 2005- forward
    13. 13. Governance of Eurosif: An Illustration Nat SIF 1 Nat SIF 2 Nat SIF n Member 1 Member 2 Member 3 Member n Board of Directors Advisory Council Executive Director advises appoints <ul><ul><li>Member Driven </li></ul></ul><ul><ul><li>Members from different nations have asked that Eurosif move its governance in this direction </li></ul></ul>Comments
    14. 14. Eurosif Financing Pathway <ul><ul><li>Step 1: EC Dependent 2001 - 2004 </li></ul></ul><ul><ul><li>EC plays role of key financial partner </li></ul></ul><ul><ul><li>SIFs are operating partners </li></ul></ul><ul><ul><li>Step 2: Transition Period 2004 - 2005 </li></ul></ul><ul><ul><li>Reduction in EC dependency </li></ul></ul><ul><ul><li>SIFs take on financial support </li></ul></ul><ul><ul><li>Step 3: SIF Supported 2006 - forward </li></ul></ul><ul><ul><li>SIFs are key financial supporters* </li></ul></ul><ul><ul><li>Foundations and others for specific programmes </li></ul></ul><ul><ul><li>*Sponsors will continue to play a critical role! </li></ul></ul>
    15. 15. Agenda <ul><ul><li>Background on Eurosif </li></ul></ul><ul><ul><li>Activities in 2003 </li></ul></ul><ul><ul><li>Key Facts and Questions about European SRI </li></ul></ul>
    16. 16. Activities in 2003 <ul><ul><li>Proposals to European policy makers </li></ul></ul><ul><ul><ul><li>Transparency Directive input </li></ul></ul></ul><ul><ul><ul><li>Role in the EC’s Multi-Stakeholder Forum </li></ul></ul></ul><ul><ul><li>Eurosif Transparency Guidelines </li></ul></ul><ul><ul><ul><li>Piloting guidelines at current time for Retail sector </li></ul></ul></ul><ul><ul><li>Study on Global Institutional SRI market </li></ul></ul><ul><ul><ul><li>First report to highlight the development of SRI across Europe </li></ul></ul></ul><ul><ul><li>‘ Expertise’ on Development of European SRI </li></ul></ul><ul><ul><ul><li>Began to instruct SRI at MBA programs </li></ul></ul></ul><ul><ul><ul><li>Speaker at a number of different conferences throughout Europe </li></ul></ul></ul>
    17. 17. EU Developments: Directives <ul><li>Context </li></ul><ul><ul><li>The SINGLE MARKET ACTION PLAN seeks to establish an EU wide single financial market with common rules for listing and accountancy by 2005 ( www. iosco .org ) </li></ul></ul><ul><ul><li>This takes the form of two directives: </li></ul></ul><ul><ul><ul><li>Prospectus Directive concerning listing (agreed by ECOFIN in June 2003) </li></ul></ul></ul><ul><ul><ul><li>Transparency Obligation Directive, to be decided upon by Summer 2004 </li></ul></ul></ul>Policy Making
    18. 18. Transparency Directive <ul><ul><li>This directive proposes to improve the information made available to all investors about publicly traded companies on regulated securities markets within the European Union </li></ul></ul><ul><ul><li>Covers ongoing and regular reporting requirements of listed companies within the EU </li></ul></ul><ul><ul><li>In the context of some stock exchanges such as London, it covers compliance with corporate governance codes </li></ul></ul>Policy Making
    19. 19. Transparency Directive: Timeline Policy Making <ul><ul><li>2002 - Second consultation on developing Transparency Directive </li></ul></ul><ul><ul><li>2001 - First consultation on developing Transparency Directive </li></ul></ul><ul><ul><li>2003 </li></ul></ul><ul><ul><li>March - EC publishes Transparency Obligations Directive </li></ul></ul><ul><ul><li>July-Sept - Rapporteur prepares report for European Parliament </li></ul></ul><ul><ul><li>Sept - Lead Parliamentary Committee EMAC meet to discuss report </li></ul></ul><ul><ul><li>Oct - Rapporteur’s final report presented to EMAC </li></ul></ul><ul><ul><li>Nov - EMAC meet to vote on amendments to Directive </li></ul></ul><ul><ul><li>Dec - EMAC produce report (with amendments to Directive) to go to European Parliament for first reading </li></ul></ul><ul><ul><li>2004 </li></ul></ul><ul><ul><li>February - Rapporteur revises amendments for EMAC </li></ul></ul><ul><ul><li>March - EMAC vote/recommendation for Parliament </li></ul></ul><ul><ul><li>April - Parliament vote </li></ul></ul><ul><ul><li>June - Council of Finance Ministers will agree a final version of the Directive taking into account the advice of their working group on financial services and the views of the European Parliament </li></ul></ul>
    20. 20. Transparency Directive: Eurosif Role <ul><ul><li>Partners with Friends of the Earth (FOE) to do background research, make contacts and draft proposals </li></ul></ul><ul><ul><li>Sends draft amendment to Members in October 2003 for comments </li></ul></ul><ul><ul><li>Eurosif Amendment is redrafted and tabled by two members of the Labour Party and sent to EMAC (FOE sends more aggressive amendment through Green Party Parliamentarian) </li></ul></ul><ul><ul><li>Process to be followed with other lobbying activities depending on outcomes </li></ul></ul>Policy Making
    21. 21. Transparency Directive: Eurosif Amendment <ul><ul><li>Article 4 (2) </li></ul></ul><ul><ul><li>The annual financial report shall comprise: </li></ul></ul><ul><ul><li>(a) the audited financial statements; </li></ul></ul><ul><ul><li>(b) the management report; </li></ul></ul><ul><ul><li>(c) statements made by the persons responsible within the issuer, whose names and functions shall be clearly indicated, to the effect that the information contained in the annual financial report is, to the best of their knowledge, in accordance with the facts and that the report makes no omission likely to affect its import. </li></ul></ul><ul><ul><li>(c) bis new </li></ul></ul><ul><ul><li>a discussion - as a reflection of the growing trend for companies to report risks and opportunities - on social, environmental and ethical issues faced by the company, and the company's policies for managing them. </li></ul></ul>Policy Making
    22. 22. Transparency Directive: Submitted Amendment <ul><ul><li>The Labour Parliamentarians submitted the following: </li></ul></ul><ul><ul><li>Article 4 (2) </li></ul></ul><ul><ul><li>The annual financial report shall comprise: </li></ul></ul><ul><ul><li>information on ethical, social and environmental policies, that may be relevant for assessments of investors that take such criteria into account for the purpose of sustainable and responsible investing. </li></ul></ul>Policy Making
    23. 23. Transparency Directive: Current Amendment <ul><ul><li>The current amendment reads the following way: </li></ul></ul><ul><ul><li>Article 4 (2) </li></ul></ul><ul><ul><li>(c) statements made by the persons responsible within the issuer, whose names and functions shall be clearly indicated, to the effect that, to the best of their knowledge, the financial statements prepared in accordance with the applicable set of accounting standards give a true and fair view of the assets, liabilities, financial position and profit or loss of the issuer and the undertakings included in the consolidation taken as a whole and that the management report includes a fair review of the development and performance of the business and the position of the issuer and the undertakings included in the consolidation taken as a whole, together with the description of the principal risks and uncertainties that they face. </li></ul></ul>Policy Making
    24. 24. EU Multi-Stakeholder Forum (MSF) <ul><li>Overall aim of the MSF </li></ul><ul><ul><li>T o foster CSR by promoting innovation, transparency and convergence of CSR practices and instruments through: </li></ul></ul><ul><ul><ul><li>improving knowledge about the relationship between CSR and sustainable development, by facilitating the exchange of experience and good practices and bringing together CSR instruments and initiatives, with a special emphasis on SME specific aspects </li></ul></ul></ul><ul><ul><ul><li>exploring the appropriateness of establishing common guiding principles for CSR practices and instruments, taking into account existing EU initiatives and legislation and internationally agreed instruments </li></ul></ul></ul>Policy Making
    25. 25. MSF: Composition of the Forum <ul><li>Chair </li></ul><ul><li>European Commission ( DG Employment & Social Affairs, DG Enterprise, DG Development, DG Trade and DG Environment) </li></ul><ul><li>Members </li></ul><ul><li>Business Networks and Associations: CECOP (European Confederation of Workers’ Co-operatives, Social Cooperatives and Participative Enterprises) , ERT (European Round Table of Industrialists), Eurochambres, CSR Europe , WBCSD (World Business Council on Sustainable Development) </li></ul><ul><li>Employers: UNICE (Union of Industrial and Employers' Confederations of Europe) , CEEP (European Centre for Public Enterprises and Services of General Economic Interest) , UEAPME (European Association of Craft, Small & Medium-Sized Enterprises), Eurocommerce </li></ul><ul><li>Civil Society Organisations: Green G8, Platform of European Social NGOs, BEUC, Amnesty International, FIDH (Fédération Internationale des Droits de l'Homme), Fairtrade Labelling Organisation, Oxfam </li></ul><ul><li>Trade Unions: ETUC, Eurocadres / CEC </li></ul><ul><li>Observers </li></ul><ul><li>European Parliament </li></ul><ul><li>Council </li></ul><ul><li>Economic & Social Committee </li></ul><ul><li>Committee of the Regions </li></ul><ul><li>ILO secretariat </li></ul><ul><li>OECD secretariat </li></ul><ul><li>UNEP </li></ul><ul><li>ACP secretariat </li></ul><ul><li>EUROSIF </li></ul><ul><li>EUA (European University Association) </li></ul><ul><li>Global compact secretariat </li></ul>Policy Making
    26. 26. MSF: Organisation of Meetings <ul><li>Meeting format - 4 theme-based Round Tables : </li></ul><ul><ul><ul><li>Knowledge RT : </li></ul></ul></ul><ul><ul><ul><ul><li>improving knowledge about CSR and facilitating the exchange of experience and good practice </li></ul></ul></ul></ul><ul><ul><ul><li>SME RT: </li></ul></ul></ul><ul><ul><ul><ul><li>fostering CSR among SMEs </li></ul></ul></ul></ul><ul><ul><ul><li>Transparency RT : </li></ul></ul></ul><ul><ul><ul><ul><li>diversity, convergence and transparency of CSR practices and tools </li></ul></ul></ul></ul><ul><ul><ul><li>Development RT </li></ul></ul></ul><ul><ul><ul><ul><li>development aspects of CSR </li></ul></ul></ul></ul><ul><li>Rapporteurs’ role is key </li></ul><ul><ul><ul><li>Steer and guide each Round Table </li></ul></ul></ul>Policy Making
    27. 27. MSF: Timeline <ul><li>T he 4 Round Tables meet in three waves (two waves finished) </li></ul><ul><ul><li>for each RT-session the Rapporteur prepares a synthesis report, that is approved by the members of the MSF </li></ul></ul><ul><ul><ul><li>the agenda, documents tabled and results of each of the waves of the 4 round tables are posted on the Europa-website ( http://europa.eu.int/comm/enterprise/csr/forum.htm) </li></ul></ul></ul><ul><li>T he MSF meets once a year on political level </li></ul><ul><li>A n interim synthesis report was presented at the high level meeting in Venice on 13th November 2003, </li></ul><ul><li>T he final report will be written by the co-ordination committee by July 2004 </li></ul>Policy Making
    28. 28. MSF: Progress Achieved <ul><li>The MSF has proven to be a learning organisation: </li></ul><ul><ul><li>The quality of the meetings and the presentations have improved considerably </li></ul></ul><ul><li>The MSF has proven to be a useful and unique platform for dialogue between the business world and its stakeholders </li></ul><ul><ul><li>The forum contributed to a better understanding of CSR, its boundaries and the roles and responsibilities of the different players </li></ul></ul><ul><ul><li>It contributed to a better understanding of views and concerns of the different stakeholders </li></ul></ul><ul><ul><ul><li>There are shared views on some specific issues, but fundamental differences of opinion remain </li></ul></ul></ul>Policy Making
    29. 29. MSF: Key Discussions <ul><li>Convergence or flexibility in transparency ? </li></ul><ul><ul><li>Should there be a European (international?) reference standard framework? </li></ul></ul><ul><ul><li>Should there be full flexibility? </li></ul></ul><ul><ul><li>Is there a middle ground? </li></ul></ul><ul><ul><ul><li>Crucial question: how can transparency be the most efficient and effective </li></ul></ul></ul><ul><ul><ul><li>Accepting internal and external verification? </li></ul></ul></ul><ul><ul><ul><li>Broad parameters with flexible implementation? </li></ul></ul></ul><ul><li>No agreement on the need for a mixture of mandatory policies and voluntary CSR-approach </li></ul><ul><ul><li>Arguments in favour of government intervention & regulation >< arguments in favour of self-regulation or even total voluntarism </li></ul></ul>Policy Making
    30. 30. MSF: Key Discussions <ul><li>What role for the stakeholder associations? </li></ul><ul><ul><li>Quite different views </li></ul></ul><ul><ul><ul><li>critical observers </li></ul></ul></ul><ul><ul><ul><li>referees </li></ul></ul></ul><ul><ul><ul><li>advocacy, guiding role </li></ul></ul></ul><ul><ul><ul><li>partners with the business world to reach the CSR goals </li></ul></ul></ul><ul><ul><ul><ul><li>is this endangering their independence, objectivity & impartiality? </li></ul></ul></ul></ul><ul><li>How to manage the tension between ‘doing it well’ and ‘doing it now’? </li></ul><ul><ul><li>Continue to debate the size of the changes needed </li></ul></ul>Policy Making
    31. 31. Increasing Presence with Parliamentarians <ul><li>Invited to address the Green Party </li></ul><ul><ul><li>Spoke to Parliamentarians about SRI </li></ul></ul><ul><ul><li>Helped them to understand the issues and discussed trade-offs in policy objectives </li></ul></ul><ul><li>Eurosif is being invited to follow up with them in 2004 and to participate in other activities </li></ul>Policy Making
    32. 32. Activities in 2003 <ul><ul><li>Proposals to European policy makers </li></ul></ul><ul><ul><ul><li>Transparency Directive input </li></ul></ul></ul><ul><ul><ul><li>Role in the EC’s Multi-Stakeholder Forum </li></ul></ul></ul><ul><ul><li>Eurosif Transparency Guidelines </li></ul></ul><ul><ul><ul><li>Piloting guidelines at current time for Retail sector </li></ul></ul></ul><ul><ul><li>Study on Global Institutional SRI market </li></ul></ul><ul><ul><ul><li>First report to highlight the development of SRI across Europe </li></ul></ul></ul><ul><ul><li>‘ Expertise’ on Development of European SRI </li></ul></ul><ul><ul><ul><li>Began to instruct SRI at MBA programs </li></ul></ul></ul><ul><ul><ul><li>Speaker at a number of different conferences throughout Europe </li></ul></ul></ul>
    33. 33. Reasons to Develop the Guidelines <ul><ul><li>Pre-empt any legislation that may be created from the EU </li></ul></ul><ul><ul><li>To ensure clarity among all stakeholders in retail financial sector </li></ul></ul><ul><ul><li>To coordinate efforts across countries that have already started initial efforts </li></ul></ul><ul><li>All participants had a voice in helping to develop the content </li></ul><ul><li>A multi-stakeholder approach included the following groups: </li></ul><ul><ul><li>Asset managers </li></ul></ul><ul><ul><li>Consumer groups </li></ul></ul><ul><ul><li>NGOs </li></ul></ul><ul><ul><li>Financial advisors </li></ul></ul><ul><ul><li>Trade unions </li></ul></ul><ul><ul><li>Regulatory bodies </li></ul></ul>Eurosif Transparency Guidelines
    34. 34. Process to Develop the Guidelines Draft 1.0 Draft 2.0 National SIF s National Members Eurosif Members Eurosif Members Draft 3.0 January February March April May June 1a 1b 2 3 4a 5 4b 6 7 9 11 10 Editing Committee 8 Outcomes <ul><ul><li>Pilot </li></ul></ul><ul><ul><li>7 Categories including Policies and Activities </li></ul></ul><ul><ul><li>Definitions </li></ul></ul><ul><ul><li>Notes to Filling out the Guidelines </li></ul></ul><ul><ul><li>For FM’s only </li></ul></ul><ul><ul><li>FAQs </li></ul></ul><ul><ul><li>For general questions of public </li></ul></ul>Eurosif Transparency Guidelines Eurosif Synthesis Eurosif Pilot Eurosif Synthesis
    35. 35. Guideline Categories for Pilot <ul><li>POLICIES </li></ul><ul><li>Basic Details </li></ul><ul><ul><li>Signatories should be clear about who they are and provide background information on the fund*, and the fund manager. </li></ul></ul><ul><li>SRI Investment Criteria </li></ul><ul><ul><li>Signatories should be clear about their purpose and investment criteria. </li></ul></ul><ul><li>3. Research Process </li></ul><ul><ul><li>Signatories should provide information on their research process. </li></ul></ul><ul><li>4. Evaluation and Implementation </li></ul><ul><ul><li>Signatories should provide information on how the research is used to build and maintain their portfolio. </li></ul></ul><ul><li>Engagement </li></ul><ul><ul><li>Signatories should explain their approach to engagement if the fund has such a policy. </li></ul></ul><ul><li>Voting Policy </li></ul><ul><ul><li>Signatories should make clear their policies on voting. </li></ul></ul><ul><li>ACTIVITIES </li></ul><ul><li>7. Periodical Activities </li></ul><ul><ul><li>Signatories should periodically disclose information about their activities. This should be done at least on an annual basis. </li></ul></ul>Eurosif Transparency Guidelines
    36. 36. Participant Information <ul><ul><li>Ideas for Participant Requirements </li></ul></ul><ul><ul><ul><li>Integrate guidelines into existing systems within firms </li></ul></ul></ul><ul><ul><ul><li>Put the guidelines into annual report and wording around using it </li></ul></ul></ul><ul><ul><li>Signatories thus Far </li></ul></ul><ul><ul><ul><li>UK (6) </li></ul></ul></ul><ul><ul><ul><ul><li>Hendersons, Insight, ISIS, Jupiter, Morley, Standard Life </li></ul></ul></ul></ul><ul><ul><ul><li>NL (9) </li></ul></ul></ul><ul><ul><ul><ul><li>Current VBDO signatories integrating Eurosif Guidelines </li></ul></ul></ul></ul><ul><ul><ul><li>DE Speaking (7) </li></ul></ul></ul><ul><ul><ul><ul><li>Bank Sarasin & Cie, Bankhaus Schelhammer, Deutshcer Investment Trust, Kepler-Fonds KAG, SEB Invest, Sparkasse, Swissca </li></ul></ul></ul></ul><ul><ul><ul><li>IT (1) </li></ul></ul></ul><ul><ul><ul><ul><li>Banca Etica </li></ul></ul></ul></ul>Eurosif Transparency Guidelines
    37. 37. Piloting the Guidelines <ul><ul><li>Goal </li></ul></ul><ul><ul><ul><li>Official Guideline agreed in 2004 </li></ul></ul></ul><ul><ul><li>Timing and feedback </li></ul></ul><ul><ul><ul><li>Funds have signed up to pilot guidelines from Summer 2003 through Spring 2004 </li></ul></ul></ul><ul><ul><ul><li>National Sifs gathering feedback from pilot users and sending to Eurosif </li></ul></ul></ul><ul><ul><ul><li>Eurosif to hold one meeting to assess current form and make any necessary adjustments </li></ul></ul></ul><ul><ul><ul><li>Pilot becomes official in Summer 2004 </li></ul></ul></ul><ul><ul><ul><li>http://www. eurosif .org/pub/ activ / transp /index. shtml for ongoing updates </li></ul></ul></ul><ul><ul><li>Challenges </li></ul></ul><ul><ul><ul><li>Enforcement/verification </li></ul></ul></ul><ul><ul><ul><li>Keeping costs low </li></ul></ul></ul>Eurosif Transparency Guidelines
    38. 38. Activities in 2003 <ul><ul><li>Proposals to European policy makers </li></ul></ul><ul><ul><ul><li>Transparency Directive input </li></ul></ul></ul><ul><ul><ul><li>Role in the EC’s Multi-Stakeholder Forum </li></ul></ul></ul><ul><ul><li>Eurosif Transparency Guidelines </li></ul></ul><ul><ul><ul><li>Piloting guidelines at current time for Retail sector </li></ul></ul></ul><ul><ul><li>Study on Global Institutional SRI market </li></ul></ul><ul><ul><ul><li>First report to highlight the development of SRI across Europe </li></ul></ul></ul><ul><ul><li>‘ Expertise’ on Development of European SRI </li></ul></ul><ul><ul><ul><li>Began to instruct SRI at MBA programs </li></ul></ul></ul><ul><ul><ul><li>Speaker at a number of different conferences throughout Europe </li></ul></ul></ul>
    39. 39. Institutional SRI Study <ul><li>Project conducted because there were no existing numbers on the sector across Europe </li></ul><ul><li>Duration/Scope of Study </li></ul><ul><ul><li>6 months </li></ul></ul><ul><ul><li>SIFs did field research </li></ul></ul><ul><li>Study represents first cut at Institutional SRI </li></ul><ul><ul><li>Numbers will be more rigorously defined next time </li></ul></ul><ul><ul><li>More countries will be assessed within the scope </li></ul></ul>Institutional SRI Study
    40. 40. Highlights from the Study <ul><li>The market remains quite different in each country </li></ul><ul><li>Pension system </li></ul><ul><ul><li>Funded pension schemes versus ‘pay as you go’ </li></ul></ul><ul><li>Financial risk orientation </li></ul><ul><ul><li>Equity orientation versus debt/bond preferences </li></ul></ul><ul><li>Activism/Sustainability culture </li></ul><ul><ul><li>Comfort level to integrate social and environmental criteria into long term investment </li></ul></ul>Institutional SRI Study
    41. 41. Key Results <ul><li> The market is estimated to be up to 336 € Billion </li></ul><ul><ul><li>Growing strength </li></ul></ul><ul><ul><li>SRI accounts for between 5-10% of pension fund investments </li></ul></ul><ul><ul><li>Concentration </li></ul></ul><ul><ul><li>UK and NL driving the market </li></ul></ul><ul><ul><li>Key strategies </li></ul></ul><ul><ul><li>Negative screening practiced by leading pension funds </li></ul></ul><ul><ul><li>Engagement strategy explains strength of SRI </li></ul></ul>Highlights Institutional SRI Study
    42. 42. Legal Context Remains Fragmented <ul><ul><li>Diversity </li></ul></ul><ul><ul><li>Only common denominator is corporate governance </li></ul></ul><ul><ul><li>Disclosure is key driver for SRI </li></ul></ul><ul><ul><li>UK and FR most progressive </li></ul></ul><ul><ul><li>Trade union growth </li></ul></ul><ul><ul><li>Netherlands, France </li></ul></ul>Highlights Institutional SRI Study
    43. 43. SRI Institutional Market -- Conclusions <ul><li>Growth of Institutional SRI </li></ul><ul><ul><li>SRI in some markets show signs of entering the mainstream </li></ul></ul><ul><ul><ul><li>UK—engagement </li></ul></ul></ul><ul><ul><ul><li>NL—negative screening </li></ul></ul></ul><ul><ul><li>Pension fund involvement </li></ul></ul><ul><ul><ul><li>Key player in driving the integration of SRI into existing financial strategies </li></ul></ul></ul><ul><ul><ul><ul><li>USS pension competition </li></ul></ul></ul></ul><ul><li>Barriers for Institutional SRI </li></ul><ul><ul><li>Definition of SRI continues to be problematic </li></ul></ul><ul><ul><ul><li>Transparency remains an issue </li></ul></ul></ul><ul><ul><ul><li>Fiduciary responsibility </li></ul></ul></ul><ul><ul><li>Awareness is limited, but growing </li></ul></ul><ul><ul><ul><li>Trade unions beginning to exert more of an influence </li></ul></ul></ul>Institutional SRI Study
    44. 44. Activities in 2003 <ul><ul><li>Proposals to European policy makers </li></ul></ul><ul><ul><ul><li>Transparency Directive input </li></ul></ul></ul><ul><ul><ul><li>Role in the EC’s Multi-Stakeholder Forum </li></ul></ul></ul><ul><ul><li>Eurosif Transparency Guidelines </li></ul></ul><ul><ul><ul><li>Piloting guidelines at current time for Retail sector </li></ul></ul></ul><ul><ul><li>Study on Global Institutional SRI market </li></ul></ul><ul><ul><ul><li>First report to highlight the development of SRI across Europe </li></ul></ul></ul><ul><ul><li>‘ Expertise’ on Development of European SRI </li></ul></ul><ul><ul><ul><li>Began to instruct SRI at MBA programs </li></ul></ul></ul><ul><ul><ul><li>Speaker at a number of different conferences throughout Europe </li></ul></ul></ul>
    45. 45. Eurosif Gaining Public Role <ul><li>Guest lecturer at Insead Business School </li></ul><ul><ul><li>Led case study in CSR Strategies Course </li></ul></ul><ul><li>Led key panel at EC Summit </li></ul><ul><ul><li>Worked with members of Chirac’s cabinet to better understand SRI issues </li></ul></ul><ul><li>Key roles in Conferences and Events </li></ul><ul><ul><li>Spoke and/or led panels at over 20 events in Europe and US </li></ul></ul><ul><ul><li>Audience range: Pension Funds, Trade Unions, SRI Investors, National SIFs, Academics, Insurance Sector, Business Groups and Political Parties </li></ul></ul>Expertise on SRI
    46. 46. <ul><ul><li>END of Morning Presentation </li></ul></ul>

    ×