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Seven brokerage houses have now been chosen by a mainstream institutional investors’ group to receive a financial incentive for providing research on companies’ social and environmental performance.
Deutsche Bank, DrKW, Goldman Sachs, HSBC, Morgan Stanley, UBS and WestLB will share about £4million ($6.5m, £3.46m) set aside by the nine investors to pay for the data.
The investors, who include BNP Paribas Asset Management (France), PGGM, SNS Reaal Group (both Netherlands), RCM and the Universities Superannuation Scheme (both UK) – have picked the brokers as part of their Enhanced Analytics Initiative, which seeks to foster sell-side SRI research (EP6, issue 7, p5).
The investors will allocate a minimum five per cent of brokerage spending in 2005 to the seven firms, which were chosen from a short list assessed by Swiss consultancy onValues.
The initiative was started late last year by four investors, but others have since joined, most recently SNS Reaal Group and the London Pensions Fund Authority. Members’ total assets under management are now £381bn.
Young financial analysts are to be questioned about the relevance of social and environmental performance to their view of a company. The Beacon Project, set up by the UN Environment Programme Finance Initiative and the World Business Council for Sustainable Development, will interview securities analysts ‘on the potential of environmental, social and governance information to impact their analyses’ – and to gauge the new generation’s attitudes to non-financial factors.
Deutsche Bank, DrKW, Goldman Sachs, HSBC, Morgan Stanley, UBS and WestLB will share about £4million ($6.5m, £3.46m) set aside by the nine investors to pay for the data.
The investors, who include BNP Paribas Asset Management (France), PGGM, SNS Reaal Group (both Netherlands), RCM and the Universities Superannuation Scheme (both UK) – have picked the brokers as part of their Enhanced Analytics Initiative, which seeks to foster sell-side SRI research (EP6, issue 7, p5).
The investors will allocate a minimum five per cent of brokerage spending in 2005 to the seven firms, which were chosen from a short list assessed by Swiss consultancy onValues.
The initiative was started late last year by four investors, but others have since joined, most recently SNS Reaal Group and the London Pensions Fund Authority. Members’ total assets under management are now £381bn.
Young financial analysts are to be questioned about the relevance of social and environmental performance to their view of a company. The Beacon Project, set up by the UN Environment Programme Finance Initiative and the World Business Council for Sustainable Development, will interview securities analysts ‘on the potential of environmental, social and governance information to impact their analyses’ – and to gauge the new generation’s attitudes to non-financial factors.Super Featured
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