SRI research firm Sustainalytics is moving into the Korean market, today announcing a strategic partnership with Sustinvest, an investment research and consulting company.
Together, the two firms will provide responsible investors in Korea with a global environmental, social and governance analysis that is informed by knowledge of local markets, Sustainlytics said in a news release.
"Korea is a vibrant market for responsible investment," said Michael Jantzi, Sustainalytics CEO. "We welcome the opportunity to align ourselves with the market leader. Our clients will benefit by having enhanced coverage and analysis of Korean securities through the Sustainalytics' platform and direct access to ESG analysts in the region."
"We are very pleased to enhance our working relationship with Sustainalytics. The ESG market in Korea is growing and we are glad to be able to provide enhanced global coverage to responsible investors here," added Sustinvest CEO Youngjae Ryu.
In addition to enhanced research capabilities, Sustainalytics and Sustinvest will be exploring new products and services for the Korean market, including an ESG ranking of Korean companies that will be published in 2012.
Sustinvest is the first SRI research and consulting firm established in Korea.
Wednesday, September 28, 2011
Tuesday, September 27, 2011
Fund firms file class action against Sino-Forest
Northwest & Ethical Investments and Comité syndical national de retraite Bâtirente inc. have launched a class action suit against Sino-Forest Corporation.
The suit, which seeks $5.8 billion in damages, was filed on behalf of investors who purchased Sino-Forest shares or notes from 2004 to 2011.
“NEI Investments has a fiduciary duty to protect the interests of our investors and in commencing this action we believe we are acting strongly to uphold the integrity of the investment industry,” said Bob Walker, vice-president, Ethical Funds, NEI Investments in a statement. “In our longstanding history of engaging with companies to promote responsible corporate governance practices, this is the first time NEI Investments has taken this last-resort approach to protect investors.”
“When our members suffer losses in their retirement plan and those losses result from the type of misconduct alleged in the statement of claim, it is our duty to assist in seeking remedies from those who bear responsibility,” added Batirente’s Daniel Simard.
Sino-Forest’s shares have been frozen amidst allegations that the Chinese forestry company exaggerated its revenues and timber holdings in China.
The suit, which seeks $5.8 billion in damages, was filed on behalf of investors who purchased Sino-Forest shares or notes from 2004 to 2011.
“NEI Investments has a fiduciary duty to protect the interests of our investors and in commencing this action we believe we are acting strongly to uphold the integrity of the investment industry,” said Bob Walker, vice-president, Ethical Funds, NEI Investments in a statement. “In our longstanding history of engaging with companies to promote responsible corporate governance practices, this is the first time NEI Investments has taken this last-resort approach to protect investors.”
“When our members suffer losses in their retirement plan and those losses result from the type of misconduct alleged in the statement of claim, it is our duty to assist in seeking remedies from those who bear responsibility,” added Batirente’s Daniel Simard.
Sino-Forest’s shares have been frozen amidst allegations that the Chinese forestry company exaggerated its revenues and timber holdings in China.
Monday, September 26, 2011
SRI Monitor Weekly News Update
Bill Gates backs financial transaction tax to aid poor...read more
Siemens to quit nuclear industry...read more
Oil-sands workers press MPs to oppose ‘wrongheaded’ Keystone pipeline...read more
Ikea: Stock Market Pressures Hinder Sustainability...read more
Siemens to quit nuclear industry...read more
Oil-sands workers press MPs to oppose ‘wrongheaded’ Keystone pipeline...read more
Ikea: Stock Market Pressures Hinder Sustainability...read more
Elements of Islamic Finance...read more
compiled with the assistance of Nick Searle
Thursday, September 15, 2011
Fracking Under Pressure
This new report by Dayna Linley, global energy sector lead for Sustainalytics, clearly outlines what’s going on in the world of fracking today, and what responsible investors should be aware of. Fracking is the colloquial term for hydraulic fracturing, that is, pumping fluids (usually water and chemicals) into a geologic formation at high pressure to release the natural gas (shale gas).
The report begins with some background on global energy demand, which is constantly increasing and driving the shift to unconventional oil and gas. ‘Due to restricted access to known reserves, many public companies are shifting their operations into higher risk areas and into unconventional oil and gas deposits. High-risk regions are generally characterized by social volatility or environmental sensitivity, while unconventional deposits are those that either contain heavier or more contaminated oil or gas, or that occur in less accessible reservoirs or rocks.’ This is followed by an explanation of the potential impacts of shale gas extraction on air emissions, land and water.
What should the socially responsible investor do? Investors should be aware of the risks, primarily reputational risk, regulatory risk and litigation risk, and should engage with companies to encourage the adoption and ongoing development of best practices. ‘Oil and gas companies, working with their energy service providers, should evaluate local conditions and regulatory frameworks to determine locally appropriate best practices to limit impacts to the environment, local populations and the bottom line.’
The section on best practices details some best practices: transparency, baseline water testing, use of green products, process changes regarding fluid management and minimization, GHG and air emission reduction and well integrity testing, contractor management and community engagement. Included are examples of corporate initiatives in each of these areas.
A final caveat - ‘…responsible investors should view shale gas development in the context of the broader need to shift our economy away from dependence on fossil fuels. Shale gas development, even with best practices in place, does nothing to contribute to this shift. Therefore, while pushing for best practices, responsible investors should push even harder for investment in renewable, sustainable forms of energy and for regulatory environments that incentivize such investment.’
See the sidebar for more stories on fracking.
Read the full Sustainalytics report here.
The report begins with some background on global energy demand, which is constantly increasing and driving the shift to unconventional oil and gas. ‘Due to restricted access to known reserves, many public companies are shifting their operations into higher risk areas and into unconventional oil and gas deposits. High-risk regions are generally characterized by social volatility or environmental sensitivity, while unconventional deposits are those that either contain heavier or more contaminated oil or gas, or that occur in less accessible reservoirs or rocks.’ This is followed by an explanation of the potential impacts of shale gas extraction on air emissions, land and water.
What should the socially responsible investor do? Investors should be aware of the risks, primarily reputational risk, regulatory risk and litigation risk, and should engage with companies to encourage the adoption and ongoing development of best practices. ‘Oil and gas companies, working with their energy service providers, should evaluate local conditions and regulatory frameworks to determine locally appropriate best practices to limit impacts to the environment, local populations and the bottom line.’
The section on best practices details some best practices: transparency, baseline water testing, use of green products, process changes regarding fluid management and minimization, GHG and air emission reduction and well integrity testing, contractor management and community engagement. Included are examples of corporate initiatives in each of these areas.
A final caveat - ‘…responsible investors should view shale gas development in the context of the broader need to shift our economy away from dependence on fossil fuels. Shale gas development, even with best practices in place, does nothing to contribute to this shift. Therefore, while pushing for best practices, responsible investors should push even harder for investment in renewable, sustainable forms of energy and for regulatory environments that incentivize such investment.’
See the sidebar for more stories on fracking.
Read the full Sustainalytics report here.
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