Sunday, 19 July 2009

GREEN INVESTMENTS A LEGAL RESPONSIBILITY, SAY UN AND TOP ASSET MANAGERS

GREEN INVESTMENTS A LEGAL RESPONSIBILITY, SAY UN AND TOP ASSET MANAGERS

'Green' investments are no longer just a luxury, but are now a legal
responsibility, according to a new report by the United Nations Environment
Programme
(<"http://www.unep.org/Documents.Multilingual/Default.asp?DocumentID=593&ArticleID=6247&l=en">UNEP)
and a powerful group of asset managers controlling some $2 trillion in
assets.

The 120-page publication released today argues that if investment
consultants and others do not incorporate environmental, social and
governance (ESG) considerations into their services, they face "a very real
risk that they will be sued for negligence."

It also stressed the central role that the world's largest institutional
investors – including pensions funds, insurance companies, sovereign wealth
funds and mutual funds – have in easing the transition to a low-carbon and
resource-efficient green economy.

"ESG issues are not peripheral but should be part of mainstream investment
decisions-making processes across the industry," said UNEP Executive
Director Achim Steiner.

Further, he noted that creative market mechanisms and other incentives can
help to ensure that as investors return to markets after the current
financial turmoil ends, they will put their funds into a greener economy and
not the "brown economy of yesterday."

The new report, entitled "Fiduciary Responsibility: Legal and Practical
Aspects of Integrating Environmental, Social and Governance Issues into
Institutional Investment," was produced by Asset Management Working Group of
the UNEP Finance Initiative (UNEP FI), a partnership between the agency and
more nearly 200 financial institutions around the world.

It was launched on the eve of the annual Principles for Responsible
Investment (PRI) event in Sydney, Australia, which will draw many of the
largest institutional investors.

Almost 600 institutions, representing over $18 trillion in assets, have
signed up to the PRI, a joint effort between the UNEP FI and the
Global Compact, a voluntary initiative
to promote corporate citizenship which currently involves over 5,000
companies across 130 countries.

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1. 2. 3. Rupert's Read: GREEN INVESTMENTS A LEGAL RESPONSIBILITY, SAY UN AND TOP ASSET MANAGERS 4. 12. 15. 16. 17. 18. 19. 20. 23. 24.

25. 26. GREEN INVESTMENTS A LEGAL RESPONSIBILITY, SAY UN AND TOP ASSET MANAGERS 27. 28.

29.
GREEN INVESTMENTS A LEGAL RESPONSIBILITY, SAY UN AND TOP ASSET MANAGERS

'Green' investments are no longer just a luxury, but are now a legal
responsibility, according to a new report by the United Nations Environment
Programme
(<"http://www.unep.org/Documents.Multilingual/Default.asp?DocumentID=593&ArticleID=6247&l=en">UNEP)
and a powerful group of asset managers controlling some $2 trillion in
assets.

The 120-page publication released today argues that if investment
consultants and others do not incorporate environmental, social and
governance (ESG) considerations into their services, they face "a very real
risk that they will be sued for negligence."

It also stressed the central role that the world's largest institutional
investors – including pensions funds, insurance companies, sovereign wealth
funds and mutual funds – have in easing the transition to a low-carbon and
resource-efficient green economy.

"ESG issues are not peripheral but should be part of mainstream investment
decisions-making processes across the industry," said UNEP Executive
Director Achim Steiner.

Further, he noted that creative market mechanisms and other incentives can
help to ensure that as investors return to markets after the current
financial turmoil ends, they will put their funds into a greener economy and
not the "brown economy of yesterday."

The new report, entitled "Fiduciary Responsibility: Legal and Practical
Aspects of Integrating Environmental, Social and Governance Issues into
Institutional Investment," was produced by Asset Management Working Group of
the UNEP Finance Initiative (UNEP FI), a partnership between the agency and
more nearly 200 financial institutions around the world.

It was launched on the eve of the annual Principles for Responsible
Investment (PRI) event in Sydney, Australia, which will draw many of the
largest institutional investors.

Almost 600 institutions, representing over $18 trillion in assets, have
signed up to the PRI, a joint effort between the UNEP FI and the
Global Compact, a voluntary initiative
to promote corporate citizenship which currently involves over 5,000
companies across 130 countries.

30. 31. 32.