Report on Socially Responsible Investing Trends in the United

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					Socially Responsible Investing Trends in the
               United States




                     Social Investment Forum Foundation
                     Washington, DC
What is SRI?

 Socially responsible investing (SRI): an investment
  discipline that considers environmental, social and
  corporate governance (ESG) criteria to generate
  long-term competitive financial returns and positive
  societal impact.
 AKA “sustainable investing,” “green investing,”
  “mission investing,” “ethical investing,” “impact
  investing.”
Why Do SRI?

There is no single motivation or approach. Reasons for
pursuing SRI include:
 To manage risk and fulfill fiduciary duties
 To fulfill values or organizational mission
 To identify factors for better financial outperformance
  (“alpha”)
 To seek long-term social and environmental impact
What the 2010 Trends Report Measures

Total assets under professional management in the United States
as of year-end 2009 that :
 ESG incorporation: consider environmental, social and
  governance factors in investment analysis and portfolio
  construction
 Shareholder resolutions: filed or co-filed shareholder
  resolutions on ESG issues in 2008, 2009 or 2010.
 Community investing: was in deposits or investments in
  banks, credit unions, venture capital funds and loan funds that
  have a specific mission of community investing.
(Trends 2010 is 8th in series that began in 1995. Previous survey
measured year-end 2006.)
Findings
SRI Assets Grew 13% Since 2007
Many Investors Use Multiple Strategies




SRI assets represent 12% of the $25.2 trillion in total assets under
management tracked in Nelson Information’s
Directory of Investment Managers
Shareholder Advocacy
Shareholder Advocacy by the Numbers

 From 2008 through the first half of 2010, more than
  200 institutional investors and money managers
  collectively controlling at least $1.5 trillion in assets
  filed or co-filed shareholder resolutions on ESG
  issues.
 Of this $1.5 trillion, $980 billion is also engaged in
  ESG incorporation.
 Shareholder advocates can also engage companies
  in dialogue and issue public statements in
  cooperation with other institutions and investors.
ESG Shareholder Proponents ● 2008-10
Shareholder Advocacy Advances
Leading Social Issues Resolutions ● 2007-10
Leading Governance Issues, 2007-10
Developments to Watch in 2011

 Will shareholders use the advisory vote on pay to
  hold management accountable?
 Will boards ensure that executive compensation
  policies are defensible and align executives’
  incentives with long-term value?
 Will high votes continue on E&S resolutions that
  raise the question of risk to shareholder value?
Acknowledgements
Sponsors
        FOUNDATIONS
 The Rockefeller Foundation    Christian Brothers Investment
                                 Services
 Wallace Global Fund
                                ClearBridge Advisors
        BENEFACTOR              Legg Mason Investment Counsel
 Bloomberg                     Sentinel Investments
 TIAA-CREF                     Towers Watson Investment
                                 Services
           LEADER               Trillium Asset Management
 MSCI                           Corporation
 Neuberger Berman              United Methodist Church,
                                 General Board of Pension &
      GENERAL SPONSOR
                                 Health Benefits
 Calvert Group                 Walden Asset Management
Contact Us

To order a copy of the 2010 Report on Socially
Responsible Investing Trends in the United States,
please email us at info@socialinvest.org or visit our
website: www.socialinvest.org/resources/pubs.

        Social Investment Forum Foundation
            910 17th St., NW, Suite 1000
                Washington, DC 20006
                    (202)872-5361
                www.socialinvest.org