Emerging investment disciplines for the management of environmental, social and governance (ESG) factors in investment processes need strong foundations. In December 2010 CAER and Seacliff Consulting evaluated the benefits and impediments of ESG practices for superannuation funds in a report titled 'Australian Superannuation Fund Investments: A report on progress made in the implementation of ESG practices'. The report used a range of quantitative and qualitative survey data collected from superannuation funds, investment managers and other industry participants. The number of Australian signatories to the UN-sponsored Principles for Responsible Investment (PRI) is proof investors agree ESG practices are important but when it comes to the implementation of practices to carry out the intent of the PRI, there has been limited progress. The survey highlighted several other major barriers to ESG practices implementation, such as misalignment between member interests and fund behaviors, uncertainty about the extent of superannuation fund trustee fiduciary duties and recognizing ESG practices as a strategic issue for superannuation funds.
esg understandIng relIes on collaboration Widely varying interpretations of environmental, social and governance factors in investment are hamp
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