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Source: Governance & Accountability Institute

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March 4, 2015

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Global Sustainable Investing Pegged at US$21 Trillion
In Survey by 7 Leading S.I. Membership Organizations

Global sustainable investing assets under management rose 61%, fromUS$13.3 trillion at the start of 2012, to reach US$21.4 trillion AUM at the start of 2014.  That’s 30% of the total of all professionally managed assets across the regions covered by the survey (which was conducted by the 7 leading sustainable investment professional membership associations).

The survey results were announced by The Global Sustainable Investment Alliance, whose mission is to “deepen the impact and visibility of sustainable investment membership organizations at the global level.  GSIA is based in Brussels.

The United States of America, Canada and the European Union accounted for 99% of the total S.I. AUM – but there are notable differences in approaches to sustainable investing.  Europe accounts for 64% of the global AUM and there, the majority of asset managers practice negative screening approaches. ESG integration into decision-making accounts for the majority practice in the USA – where corporate engagements seem to be more important to asset managers.

While sustainable investing is fast catching on in the US capital markets (with $1 in $6 AUM identified in the latest survey by member organization US SIF), in Europe more than half of all professionally-managed AUM practice an ESG strategy.  (Australia, USA and Canada shares of market range from 17% to 31%, says GSIA.)

“Impact Investing” is becoming an important theme as part of the overall sustainable investing scene, in all markets studied. (The group describes this as targeted investments, typically in private markets, aimed at solving social or environmental problems.)

Member organizations include US SIF, Eurosif, ASrIA, RIAA, RIA, UK SIF, and VBDO.  The survey was conducted by the 7 groups plus Japan Social Investment Forum. 
The highlights of the survey results are presented in our Top Story this week. 

Top Story of the Week

Global Sustainable Investment Alliance Issues Second International Assessment Of The Sustainable Investment Landscape
(Wednesday - February 25, 2015)
Source: Global Sustainable Investment Alliance —The global sustainable investment market has grown substantially in both absolute and relative terms, according to The Global Sustainable Investment Review 2014, a report released by the Global Sustainable...

Sustainability in Focus

Economic models provide insights into global sustainability challenges
(Friday - February 27, 2015)
Source: Purdue University - Using models that blend global economics, geography, ecology and environmental sciences is essential to understanding how changes in trade and natural systems in one part of the world affect those in...

Retail Sustainability: Do Shoppers Even Care?
(Friday - February 27, 2015)
Source: National Real Estate Investor - Owners of retail assets may be compelled to pursue sustainability initiatives in response to increasing energy disclosure regulations, investor pressure and even tenant demand. But until recently, there was scant data to help...

Should sustainability play a part in US dietary guidelines?  
(Thursday - February 26, 2015)
Source: Christian Science Monitor - Dozens of advocacy groups are urging the USDA to adopt sustainability recommendations into US dietary guidelines, but they face obstacles from lobbying groups for the meat and poultry industries.

Battle for Our Future: Sustainability vs. Innovation
(Thursday - February 26, 2015)
Source: Huff Post - Show your average chief innovation officer or chief marketing officer the corporate social responsibility (CSR) plan from the chief sustainability officer and they are unlikely to get that excited.

Walmart Unveils Virtual Sustainability Shop
(Wednesday - February 25, 2015)
Source: Triple Pundit - It’s about to get a lot easier for Walmart.com shoppers to make the responsible choice. On the heels of last week’s jaw-dropping commitment to increase wages for Walmart employees, the retailer announced this morning at the...

Communicating sustainability is a subtle attempt at doing good
(Wednesday - February 25, 2015)
Source: The Guardian - Soft power. That was the term coined by Harvard professor Joseph Nye some 25 years ago to describe how America could influence the world through the marketing might of its global consumer brands rather than its military clout.

Sustainable seafood summit focuses on aquaculture and regulating imports
(Tuesday - February 24, 2015) Associated Profiles : Food and Agriculture Organization of the United Nations
Source:  The Times-Picayune - An annual summit on sustainable seafood kicked off Monday (Feb. 9) in New Orleans, focusing on reasons to promote national aquaculture efforts and better regulate imported farmed seafood. In her keynote...

Be Part of the Conversation...About Food Sustainability
(Tuesday - February 24, 2015)
Source: Shape - Sustainability has become the buzzword for efforts being made to maintain the balance between our needs and natural resources. We all want to enjoy a variety of foods, but we have to make sure the water, land, and energy sources...

Companies turning to social media to communicate sustainability
(Tuesday - February 24, 2015)
Source: Blue and Green Tomorrow - Global companies are increasingly turning to social media to communicate their sustainability initiatives to the public, according to a report from Sustainly. The trend comes as consumers are taking more factors into account when...

Food Industry Sustainability Strategies and Practices Report
(Monday - February 23, 2015)
Source: PR NewsWire - Sustainability in the food industry is a major strategic issue for all stakeholders involved in the food supply chain, from agriculture, ingredient manufacturing, product manufacturing, packing, and distribution, to the...

2015 Could Be Year For Sustainable Development & Investment
(Monday - February 23, 2015) Associated Profiles : UN - Environmental Programme
Source: CleanTechnica - A new report published by the United Nations Environmental Programme, the third progress report from their Inquiry into the Design of a Sustainable Financial System, highlights several...

ESG Issues & Players

How To Solve The Water Crisis: Use More Fossil Fuels
(Thursday - February 26, 2015)
Source: Forbes - It’s cliché to say we have a water crisis. It’s certainly cliché to blame it on “climate change,” i.e. fossil fuels. But if we look at the big-picture data, as against fixating on the most dramatic headlines about the places that...

A Thirsty, Violent World
(Wednesday - February 25, 2015)
Source: The New Yorker - Angry protesters filled the streets of Karachi last week, clogging traffic lanes and public squares until police and paratroopers were forced to intervene. That’s not rare in Pakistan, which is often a site of political and...

Industrialized Countries To Start Unveiling Climate-Change Strategies This Week
(Tuesday - February 24, 2015) Associated Profiles : United Nations - All Programs
Source: Ecosystem Marketplace - On Wednesday, the European Union will unveil its post-2020 climate-change strategy, kicking off a 40-day period during which most industrialized nations are expected to upload their strategies to the...

It’s Morning, Again, in America...
(Monday - February 23, 2015)
Source: Larry Checco - To hear many politicians, pundits and financial analysts tell it, it’s morning again in America. The stock market is at record highs. Corporations are sitting on trillions of dollars in cash (Apple, alone, has US $178 billion in...

Asset Managers, US Pension Funds, Sovereign Wealth Funds

Study: NV PERS Unfunded Liability Among Top 10 Largest Per Capita
(Friday - February 20, 2015) Associated Profiles : Nevada Public Employees Retirement System (NVPERS)
Source: watchdogwire.com - According to calculations by State Budget Solutions (SBS) Nevada PERS's $48.5 billion unfunded liability is 36% of Gross State Product. Officially, the unfunded liability reported by PERS in...

Best practices of the best-funded public pensions
(Thursday - February 26, 2015) Associated Profiles : Delaware Public Employees Retirement System (DPERS)
Source: benefitspro.com - The study examined the specifics of the Delaware Public Employees'  Retirement System, the Illinois Municipal Retirement Fund, the Iowa Public Employees' Retirement System and North...

How Hedge Funds Can Access Sovereign Wealth Funds
(Thursday - February 26, 2015) Associated Profiles : Korean Investment Corporation (KIC)
Source: Opalesque Hedge Fund News - For example, the Korea Investment Corporation (KIC) is a sovereign wealth fund that invests in hedge funds. One of KIC's former chief investment officers Scott Kalb possessed a...

Sovereign Wealth and Pension Money Flow Into Energy Funds
(Tuesday - February 24, 2015) Associated Profiles : The Blackstone Group
Source: swfinstitute.org - The Blackstone Group had total commitments of US$ 4.5 billion for its second energy fund, Blackstone Energy Partners II. Some large pensions invested in the fund include: New Jersey Division of...

Investors Focus on Socially Responsible Investing With Impact
(Tuesday - February 24, 2015)
Source: TheStreet - Investors continue to put money to work in socially responsible investment funds and they're making money doing it, says Amy O'Brien, head of socially responsible investing for TIAA-CREF...

Watching the Watchers

Responsible Endowments Coalition
Headquarters: Brooklyn, NY
Established: 2004

ESG/Sustainability Focus: Yes, for encouraging colleges and universities to make responsible investments with their endowments.

KEY PARTNERS
Social Investment Forum, Interfaith Center on Corporate Responsibility, 2020 Women on Boards, Trillium Asset Management, and Portfolio 21, among others.

OVERVIEW/MISSION
The beginning of the Responsible Endowments Coalition mission statement reads: "The Responsible Endowments Coalition (REC) works to build and unify the college and university-based responsible investment movement, both by educating and empowering a diverse network of individuals to act on their campuses, and by fostering a national network for collective action."

BACKGROUND
Student activists from five colleges and universities founded REC in 2004. (Barnard College, Duke University, University of Pennsylvania, Swarthmore College, and Williams College.)  Today more than 100 colleges participate.

The group's student-led activities focus on social change by inspiring young people to take action on human rights and environmental issues within the context of guiding colleges and universities to make responsible investments with endowment money.  Investing is more than just making money - it should include a higher purpose, organizers believed.

REC says its members schools manage over US$150 billion.

New Sweeps

Activists: Colleges Should Participate in Bank Transfer Day
(Friday - February 13, 2015) Associated Profiles : Responsible Endowments Coalition
Generation Progress - Activists' efforts to pull colleges and universities into Bank Transfer Day has gained the support of the Responsible Endowments Coalition, a non-profit which encourages colleges and...

State of the Union Shows Obama Still Needs Movement Pressure on Climate
(Friday - January 30, 2015) Associated Profiles : Responsible Endowments Coalition
Truth Out - She continues to work closely with the DSN, and this spring was a social media intern for the New Economy Coalition. Kate is also a board member at the Responsible Endowments Coalition.  

Is Social Justice Driven by Emotion or Reason'
(Friday - January 30, 2015) Associated Profiles : Responsible Endowments Coalition
Truth Out - She continues to work closely with the DSN, and this spring was a social media intern for the New Economy Coalition. Kate is also a board member at the Responsible Endowments Coalition…

Check It Out...


G&A Institute Sustainability Update
Informative, insightful, thought provoking
The Governance & Accountability Instituteblog focusing on the sustainable world evolving daily before our eyes.  Read it, absorb it, question it and challenge.

G&A's Sustainability Update
Insights & perspectives for your sustainable journey...
Recent Posts

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Attention Boards & CEOs: The Conference Board Has Important Insights to Share To Help Your Company…Survive and Succeed!

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Featured Events

Sustainable & Ethical Cotton Sourcing  How To Get It Right, And Make It Pay For Your Business
Innovation Forum with CottonConnect
16-17 March 2015 | London, UK
G&A Discount Code: GA15

How Business Can Tackle Deforestation
Innovation Forum
14-15 April 2015 | Washington, DC
G&A Discount Code: GA15

*SAVE THE DATE*
Shareholder Activism Program

Baruch College | NYC | April 21st

*SAVE THE DATE*
ESG SUMMIT

Skytop Strategies | NYC | June 19th

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Corporate ESG Performance Factors & SustainabilityHQ

Corporate ESG Performance Factors are important to financial analysts, asset owners and managers, and many stakeholders.  The ESG framework or approach considers environmental issues and impacts, the company’s positioning and actions on social/societal issues, and important aspects of corporate governance.

ESG key performance indicators are considered by investors as proxies for effective governance and management. Increasing numbers of of independent research and financial analysis firms monitor and measure these and advisie investors.  The Sustainability HQ™ platform is an important profiling and monitoring resource for the G&A team, and for our clients and subscribers.

ESG market players and corporate reputation influencers are profiled and monitored by G&A Institute. In these Highlights we provide some results of our continuous global scanning for ESG, sustainability and corporate responsibility news. The Associated Profiles indicated are in our Sustainability HQ™  platforms.  For more information, please email us at info@sustainabilityhq.com
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For more on:
ESG & Sustainability Players
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Sovereign Wealth Funds (SWFs)
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US Public Sector Investors 
- State and Municipal Retirement Funds

Asset Managers
- Investors adopting ESG guidelines / policies & shaping market trends

Navigating the way to sustainability...
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