The U.S. Supreme Court’s nondecision May 12 in a case involving major global corporations and victims of apartheid has several socially responsible investing twists and turns.
Members of council back U.N.-established ESG principles
The 13 members of the Private Equity Council, among the nation’s largest pools of private capital, have pledged to apply responsible investment guidelines in making their investments.
The agreement reflects discussions between the council and a number of major institutional investors, such as the California Public Employees Retirements Systems, that often are limited partners in PEC investments.
A game changer for company value?
United States retirement plans have lost trillions of dollars since the subprime meltdown began. The ultimate flight to quality is under way as investors search for safety. The repercussions of this crisis are likely to be far-reaching in how shareowners assess future risks and how they view long-term corporate sustainability.
Corporation’s role in mitigating risk to attract investor assets
A great deal of attention has been focused lately on the idea of socially responsible investment (SRI). According to an annual report from the Social Investment Forum, approximately $1 of every nine under professional management in the U.S. is involved in SRI. Assets under management linked to SRI in the U.S. alone reached $2.71 trillion by the end of 2007. This number represents 18 percent growth from since 2005, compared with 3 percent growth across the broader investment universe, according to the same report.
Management opposes first resolution in the sector on Sudan genocide
Fidelity Investments finds itself facing the mutual fund industry’s first shareholder resolution campaign, a drive generating a lot of heated rhetoric and investor protests. The Investors Against Genocide campaign asserts that two Chinese oil companies, PetroChina and its parent China National Petroleum Co., by doing business with Sudan, are providing funding that the Sudanese government uses to “conduct genocide in Darfur.”
The U.S. Supreme Court’s nondecision May 12 in a case involving major global corporations and victims of apartheid has several socially responsible investing twists and turns.
Shareholders show increased resolve to support proxy ballots
Total assets of professionally managed socially responsible funds rose more than 18 percent between 2005 and 2007, the Social Investment Forum reported. The study identified $2.71 trillion in total assets invested in one or more core strategies—screening, shareholder advocacy and community investing.
Institutional Shareholder Services tracks the trends and changes for the 2007 proxy season in report.
Institutional Shareholder Services (ISS) discovered a focus on accountability, engagement, proposals for takeover defenses and social issues in their report on the 2007 U.S. proxy season. Overall, ISS found that individual investors had a good season in terms of attracting investor support.
Recent report finds corporations that lead in corporate responsibility also lead in the market.
A new study, released by investment bank Goldman Sachs at the U.N. Global Compact Summit July 5-6, found that companies that are considered leaders in environmental, social and governance (ESG) policies are also leading the pack in stock performance—by an average of 25 percent.