AfricaSIF.org Trends Report 2011-2013 Project


We think you will agree that this is an unparalleled opportunity for leaders in the investment industry in the frontier and emerging markets in Africa today. Aggregating available information at 31 December 2011 in line with similar studies globally, AfricaSIF.org determines that more than US$130 billion in AuM in some way integrates ESG factors, making Africa a top 10 global marketplace for sustainable investment. 


This project developed a project plan, recruited a project manager and project partners in 2011-2012 to research, analyze and publish the inaugural AfricaSIF.org 2013 Trends Report in Q4 2013 looking at the sustainable investment market size and dynamics in 54 countries in Africa. http://www.africasif.org/trends-report-2011-2013.php

For the first time, global SIFs are harmonizing the reporting, so AfricaSIF.org is contributing the Africa coverage into the global SIFs 2012 Global Trends Report.



SCOPE

  • Report will provide a global figure of sustainable investment assets in Africa.
  • Assets will be measured as of 31 December 2011, commentary and analysis will capture major events through 30 June 2013.
  • Report will cover both secondary and primary research using survey technique and available data from investors, stock exchanges, regulators and/or services providers in Africa. The report will use the recent research in: 
  • Report will map professionally managed Africa assets by covering firstly assets Africa assets managed from Africa, and secondly assets managed from outside Africa.
  • Report will be maximum 30 pages plus appendices in a PDF publication; with limited release hardcopy printing and a media release 30 September 2013.

The report will answer the question: how much sustainable investment is in Africa today, and what does it look like? The report is designed to offer a marketplace survey of the institutional investment industry in Africa focused on investments that in some way cover environmental, social and governance factors. The activities of portfolio investors, fund management industry, stock exchanges and other stakeholders will be covered where relevant to describing the marketplace. We seek to offer participants learnings on what is/is not being done in Africa, and the ongoing risks and opportunities in the context of economic development in Africa.



AUDIENCE

The audience is wide, covering investment managers, stock exchanges, regulators, legislators, think tanks, advertising agencies, consulting firms, analysts, academia, and the media covering Africa. The report will be a distributed at zero marginal cost electronically with a limited hardcopy run. We expect more than 2,000 downloads of the report.



BUDGET

AfricaSIF.org is a volunteer-run organization. We are recruiting lead sponsors - global asset management, ESG research, retirement fund, DFIs and others - to provide cash and/or services to help prepare the report. Offers of data, analysis and publishing support will be acknowledged and accessed where necessary.



PARTNERS / SPONSORS

Project partners will actively contribute to refining the AfricaSIF.org focus, agenda and content of the report.  As a not-for-profit, mission-driven organization, we need research partners/sponsors to back the first-ever Africa marketplace research project by committing energy, time and resources. We estimate the project needs research input of 100 hours and/or support in:
1.    Data gathering, research and analysis
2.    Report writing
3.    Report graphics and publishing
8.    Multimedia for launch event/s, supply and/or share cost of marketing support (including photography or videography).

See PROJECT TEAM (below) for Partners.



METHODOLOGY AND DEFINITIONS

The AfricaSIF.org Trends report Project methodology aligns with the global SIFs, consistent with the 2012 Global Trends Report


Major Definition
AfricaSIF.org will use "Sustainable Investment" as the term in the report and define it as:
"an approach to investment in any asset class in Africa where environmental, social and governance (ESG) factors are proactively integrated at any stage of the investment life cycle for positive impact." 


Classifications

1.    Screening

  • a.    norms-based
  • b.    negative/exclusionary
  • c.    positive/best-in-class

2.    Integration
3.    Sustainability-themed investing (e.g. climate change, water, agriculture, and renewable energy funds)
4.    Impact Investing
5.    Corporate Engagement and Shareholder Action


Definitions:

Consistent with the 2012 Global Trends Report, we use definitions agreed globally by SIFs:

  • Screening
Applying a filter to portfolio universes...
  • Norms-based Screening - Screening of investments based on compliance with international norms and standards such as the Global Compact. May include exclusions of investments that are not in compliance with norms or standards or over and underweighting
  • Negative/Exclusionary Screening - Exclusion of investments or classes of investment based on pre-determined ESG criteria. This can involve the simple screening of shares in companies that are involved in controversial activities like the manufacturing of weapons or tobacco, the screening out of entire sectors, or screening out poor performing companies from an investable universe.
  • Best-in-Class/Positive Screening – Strategy that seeks out leading companies, based on ESG criteria, within a defined universe.
  • Integration
    Integration is the explicit consideration of environmental, social and governance factors in the investment decision-making process. Integration must be demonstrated to be guided by a transparent and systematic process.
  • Sustainability Theme Investment
    Investment funds that address specific sustainability issues such as climate change, food, water, renewable energy/clean technology, agriculture, etc.
  • Impact Investing
    Impact investments are direct investments made in companies and organizations with the intention to generate social and environmental impact alongside a financial return . Examples of impact investing include community investing, where capital is specifically directed to traditionally underserved communities or individuals, or financing that is provided to businesses with a social or environmental purpose or enterprising (i.e. revenue-generating) non-profits.
  • Corporate Engagement and Shareholder Action
    This strategy employs shareholder power to influence corporate behaviour through direct corporate engagement, filing or co-filing shareholder proposals, and proxy voting. Proxy voting must be supported by a policy and engagement activities that are guided by a transparent and systematic approach to issues encompassing environmental, social and governance objectives.


What Gets Counted

We are asking for assets managed / owned by anyone in the world but invested only in Africa. This is slightly different from methodology of other reports, for example Eurosif, which chooses to ask for European-managed assets invested anywhere. While we will separate out ESG-branded products in the final report and present a discussion on retail-level ESG, we will not use motivation of institutional investors (whether values-based or value-based) to count or not count assets. PRI signatories will be looked at to cross-reference our data or to identify organizations that need to be surveyed. We will not wholesale include these assets. The report will describe:

  • Assets broken down by strategy
  • Assets by investor type
  • Assets by country


Double Counting

We are asking for assets managed / owned by anyone in the world but invested only in Africa. This is slightly different from methodology of for example, Eurosif, which is to ask for European managed assets invested anywhere. AfricaSIF.org will use a pragmatic method to reduce the possibility of double-counting assets at the owner and fund manager levels. To avoid double-counting across regions, we will seek to ask asset managers for the value of assets managed on behalf of clients within Africa, separating assets managed globally from assets managed inside Africa. Asset owners will be asked, where possible, for the names and locations of their managers with the value of those mandates.

GLOBAL PRECEDENTS & OTHER AFRICA RESEARCH


This is the first-ever Africa report. We have learned from two different types of similar reports and AfricaSIF.org has the support and encouragement of all global SIFs to conduct this research:

  • IFC-funded reports on sustainable investment


RECENT EXAMPLE REPORTS


Eurosif Marketplace Trends Report 2010 Launch in Paris, France, October 2010


PROJECT STATUS



UPDATE 14 - 28 September 2013: REVISED LAUNCH DATE

Based on progress, we have scheduled for the launch date 6 November 2013 adjacent the Thomson Reuters Trading Africa conference in Cape Town, South Africa, with other launch events and webinar to follow. Check back to stay posted.


###



PHASES

Project Management
Research Launch
Framework - Design
Framework - Peer Review
Data ask
Data clean
Analysis
Peer review
Rework
Writing
Publication
Report Launch Events (Africa / Global)
Report Marketing/Exposure
Project Summary
Project Close

PROJECT TEAM

We value all our partners and/or sponsors helping the all-volunteer team in the WORKSPACE to deliver an excellent report. The AfricaSIF.org Trends Project Team is currently made up of:


Project Partners Team
  • Partners Group
    • Mark van Wyk & Ronel Scheepers, Mergence Investment Managers
    • Adri Joubert & Ryan Andersen, Frost & Sullivan
    • Jon Duncan, Old Mutual Investment Group South Africa 
    • Barbara Evans Pomfret, Bloomberg ESG
    • Therese Niklasson, Investec Asset Management
    • Adrian Bertrand & Belaina Negash, Government Employees Pension Fund 
    • Martina Macpherson, MSCI ESG
    • Gareth Allison, MSCI Africa
    • Josef Dobrawez, Thomson Reuters Africa
    • Jako Volschenk, University of Stellenbosch Business School (USB)

AfricaSIF.org Project Team
  • Work Group
    • Deon Smith, RisCura & AfricaSIF.org Project team [Project Manager]
    • Asmaa El Bacha Blanc, AfricaSIF.org Project team
    • Olivia Muiru, B.Lab & AfricaSIF.org Project team
    • Pamela Leste De Perindorge, AfricaSIF.org Project team
    • Keith Comline, Comline Attorneys & University of Cape Town Graduate School of Business MBA Candidate & AfricaSIF.org Project team
    • Adekanmi Lawson, AfricaSIF.org Project team & Edward Nathan & Sonnenbergs (ENS)
    • Ian Meaker, AfricaSIF.org Project team
    • Buyiswa Nodada, Independent Actuaries & Consultants & AfricaSIF.org
    • Graham Sinclair, SinCo & AfricaSIF.org Project team
    • Suchit Saraf, HEC Paris MBA & AfricaSIF.org Project team
    • Micah Sarkas, UCT GSB MBA Candidate
Other
    • Greg Barker, Sustainable Capital & AfricaSIF.org
    • Miles Mudzviti, AfricaSIF.org Project team
    • Sam Obamiyi, Craven Cottage Partners
    • Avril Harvey, University of Cape Town Graduate School of Business MBA Candidate


See BIOs at AfricaSIF.org Trends Report Project 2011 - 2013 Team Biographies http://www.africasif.org/trends-team-bios.php


ACKNOWLEDGEMENTS

Projects of this type are not possible without the committed support of many colleagues. We acknowledge all respondents to the online surveys, interviewees, and the many colleagues inside and outside South Africa who helped the ideation and execution of the research. We acknowledge a major debt of gratitude to three groups of people who have made this report possible:

1. The teams at AfricaSIF.org, MSCI, Bloomberg, GEPF, RisCura, OMIGSA, Investec Asset Management, Mergence Investment Managers, Frost & Sullivan, and SinCo.


2. Survey respondents and interviewees at asset owners and asset managers managing assets in Africa, research data providers, and other investment services providers, namely:
...

BlueOrchard Finance
Investec Asset Management
Old Mutual Investment Group
Old Mutual Investment Group
Private Investor
Royal County of Berkshire Pension Fund
Sanlam Investment Management (Pty) Ltd
Mergence Investment Managers
Sustainable Capital
Investec Asset Management
Fairtree Capital
27Four Investment Managers
RisCura

3. Project supporters, peer reviewers and providers of information and support, including:
Ian Bragg (SIO)
Corli le Roux (JSE)
Therese Niklasson, Malcolm Gray, Zanele Mtshali (InvestecAM)
Anders Nordheim (Eurosif)
Josh Humphreys (Harvard University)
...[more soon]

and anonymous contributors.

Thank you.

GRADUATE RESEARCH TOPICS

AfricaSIF.org uses every opportunity to grow the interest in and broaden the activity of sustainable investment in Africa. As part of the effort to be inclusive, we offer graduate students the opportunity to shadow the project to further their research work, and support the project outcomes. Please email africasif@gmail.com with "TRENDS RESEARCH" in the subject line.


SAMPLE RESEARCH TOPICS
  • 1. Which will grow faster in Africa: fixed income or equity investments?
  • 2. An estimation of trading activity on African stock exchanges.
  • 3. A determination of the degree of shareholder activity in country X/region Y/ Africa.
  • 4. The application of GRI by investors in Africa.
  • 5. Criteria for negative/positive screening in country X/region Y/Africa.
  • 6. Are investors willing to pay a premium for better ESG performance?
  • 7. How do asset managers see impact investing/demand for/track the growth of demand for ESG in Africa?
  • 8. Type and availability of investment funds that address specific sustainability issues such as climate change, food, water, renewable energy, agriculture, etc.
Students will be bound by the Protocol for Ethical Research in the Faculty of Economics and Management Sciences of the University of Stellenbosch, see http://www.ekon.sun.ac.za/ebwresearch/Research/Ethical_Research.html

SAMPLE QUESTION SET USED IN CANADA by SIO, 2012


Socially Responsible Investment Survey - Asset Manager Survey
Every two years, the Social Investment Organization conducts a survey of Canadian investors to determine the size and characteristics of the socially responsible investing industry in Canada. This year, we are integrating our results with global SRI organizations and are therefore using harmonized terminology.

Your response is critical to preparing a valid and meaningful global report and will help inform our understanding of socially responsible and sustainable investing. Please don’t hesitate to call me with any questions or concerns while completing this survey. Contact details are provided at the end of this document.


  • Organization and contact information
  • Your organization’s name: 
  • Your full name:   
  • Job title:


Survey of Assets
For the questions below, please provide the values of assets in each category that are under management for Canadian client portfolios as at 31 December 2011. Do not include assets invested in collective investment schemes / mutual funds.

Classifications
The SIO and other social investment organizations around the world recognize five major approaches to socially responsible investing. Please complete the table below, identifying the value of assets in each approach. Preceding this table are the definitions for each approach.

1.    Screening – There are three distinct approaches to screening, including

  • a.    negative/exclusionary - Exclusion of investments or classes of investment based on pre-determined environmental, social and governance (ESG) criteria. This can involve the simple screening of shares in companies that are involved in controversial activities like the manufacturing of weapons or tobacco, the screening out of entire sectors, or screening out poor performing companies, using an ESG analysis, from an investable universe. Screening out poor performing companies using a best-of-sector analysis is an example of negative screening.
  • b.    positive/best-in-class - Strategy that seeks out leading companies, based on ESG criteria, within an investible universe. Selecting or “screening in” top performing companies using an ESG analysis from a potential group of investments is an example of positive or best-in-class screening. This approach is very rare in the Canadian context.
  • c.    norms-based screening - Screening of investments based on compliance with international norms and standards such as the UN Global Compact, OECD Guidelines for Multinational Enterprises, the ILO Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy, or the UN Draft Human Rights Norms for Business, etc.

2.    Integration - Integration is the explicit consideration of environmental, social and governance factors in the investment decision-making process. Integration must be demonstrated to be guided by a transparent and systematic process that is informed by ESG research and analysis.

3.    Sustainability-themed investing - Investment funds that address specific sustainability issues, sector or industries such as climate change, food, water, renewable energy/clean technology, agriculture, etc.

4.    Impact Investing - Impact investing is a strategy within socially responsible investing referring to targeted investments, typically made in private markets, aimed at solving social or environmental problems. Impact investing includes community investing, where capital is specifically directed to traditionally underserved individuals or communities, or financing that is provided to businesses with a clear social or environmental purpose, or to enterprising (i.e. revenue-generating) non-profits.

5.    Corporate Engagement and Shareholder Action - This strategy employs shareholder power to influence corporate behaviour through direct corporate engagement (i.e. communicating with senior management and/or boards of companies), filing or co-filing shareholder proposals, and proxy voting.

Please fill in the chart below:

  • Value of Assets Managed for Canadian Client Portfolios – At Dec. 31, 2011 C$
  • SRI Strategy     
  • Screening    
    • Norms-based Screening    $
    • Negative/Exclusionary Screening    $
    • Best-in-class/Positive Screening    $
  • Integration    $
  • Sustainability themed investing    $
  • Impact Investing    $


Please answer the following questions:

1.    Corporate Engagement

  • a.    Do you have a formal structured environmental, social and governance (ESG) corporate engagement program or strategy in place for assets under management? If yes, please describe.
  • b.    If you answered yes to question a.), please indicate the portion and value of SRI assets, noted in the chart above, that your ESG corporate engagement program applies to.
  • c.    If you provide engagement services for assets not included in the chart above, please report the size of those assets here and provide details.
  • d.    Do you have proxy voting guidelines that address environmental and social issues?
  • e.    Have you ever filed or co-filed shareholder resolutions addressing ESG issues. If so, please provide details.


2.    Please provide details of your screening strategy, if relevant. For example, what is the process used? How is research used? For negative screening, what specific screens are used (e.g. tobacco, nuclear energy.

3.    Please provide details on your integration strategy, if relevant.
   
4.    Please provide details on your sustainability-themed investing strategy, if relevant.
   
5.    Please provide details on your impact investing strategy, if relevant.    

6.    Other Comments.

7.    Finally, please attach copies, or provide links to, your investing and proxy voting policies that support your SRI investment strategies.

MEDIA RELEASES


AFRICA

MEDIA RELEASE

AfricaSIF.org Launches First-Ever Pan-African Research Project on Investment Management and ESG

- 28 September 2012 Embargoed until midnight SAST 27 September 2012 -

CAPE TOWN, South Africa, 28 September 2012 - How much investment in Africa today proactively integrates environmental, social and corporate governance (ESG) factors? A new research project has been launched today to find answers by mapping the marketplace for sustainable investment in Africa across all asset classes. The first-ever pan-African report will be released mid-December 2012.

The AfricaSIF.org Marketplace Trends 2012 Report Project is led by the all-volunteer AfricaSIF.org (Africa Sustainable Investment Forum) team based in Mauritius, Kenya, Nigeria, Tunisia, South Africa, USA and the UK. Project partners include major firms active in the investment value chain in Africa, namely the Government Employees Pension Fund of South Africa, Investec Asset Management, Mergence Investment Managers, Old Mutual Investment Group South Africa, MSCI, Bloomberg, Frost & Sullivan, RisCura, and SinCo.

"GEPF is delighted to partner with AfricaSIF.org and other project partners in the Marketplace Trends 2012 report,” said Adrian Bertrand, ESG Manager. “We welcome this research and are confident that it will add a fresh African perspective when surveying global trends in sustainable investment,” he added.

“This evidence-based research of investment trends put into the public domain will help all stakeholders figure out “where to from here” for sustainable development in Africa,” said Graham Sinclair, President of AfricaSIF.org. “Through this project, AfricaSIF.org is scaling up the awareness, increasing technical skills, and advocating for sustainable investment in Africa.”

According to IFC research in 2011, the investment market in Africa using self-described ESG policies has over US$125 billion in assets under management, making Africa a significant market for ESG in investment practice. AfricaSIF.org defines "sustainable investment" in the report as: "an approach to investment in any asset class in Africa where environmental, social and governance (ESG) factors are proactively integrated at any stage of the investment life cycle."

More than 500 investment managers globally who invest in Africa across any asset class will be canvassed through surveys and interviews. Investment managers who participate qualify for an invitation-only briefing adjacent to the official launch of the report in December. The online research consultation is scheduled to close on 13 October 2012. All respondents will be acknowledged in the report. On completion of the online survey's 25 questions, respondents may view the real-time aggregated responses to date.

Future potential project partners in Africa are invited to connect with the project. In keeping with AfricaSIF.org’s transparent and inclusive approach, information on the project is available at http://www.africasif.org/marketplace-and-trends-report.php. Investment managers in Africa are invited to complete the online survey at http://www.africasif.org/trends-2012-survey.php.



- Ends -


NOTES TO EDITORS

About AfricaSIF.org:

AfricaSIF.org is an independent, pan-African, not-for-profit network, knowledgebase and advocate promoting investment in sustainable development across the continent launched in June 2010. The AfricaSIF.org Project is run by volunteers building a network of institutions and individuals promoting sustainable investment in Africa by investors in public, private and philanthropy sectors across asset classes, countries and stakeholders from our platform at africasif.org.
 
For more information on the AfricaSIF.org Marketplace Trends 2012 Report Project see - http://www.africasif.org/marketplace-and-trends-report.php
For managers of investments in Africa, please complete the survey online see - http://www.africasif.org/trends-2012-survey.php


Media Enquiries:

Deon Smith
Project Manager: AfricaSIF.org Marketplace Trends 2012 Report Project
+27.82.774.1259

Graham Sinclair
President: AfricaSIF.org
+27.82.712.1925

WEB:  www.AfricaSIF.org
EMAIL:  africasif@gmail.com
TWITTER:  @africasif


Global Partner Organizations:

The following people are representatives of partner organizations of the report and are also available for comment:
•    Bloomberg:  Jane Armstrong, jarmstrong42@bloomberg.net, +44 203 525 8111
•    Frost & Sullivan: Adri Grobler adri.groble@frost.com  +27.82.653.8785;  CC Christie Cronje Christie.Cronje@frost.com
•    GEPF: Khaya Buthelezi; GEPF Communications Manager; khaya.buthelezi@gepf.co.za, +27 12 424 7329
•    Investec Asset Management: Therese Niklasson; Therese.Niklasson@investecmail.com;  +44 20 7597 2189 ; CC Malcolm Gray; Malcolm.Gray@investecmail.com; CC Vian Sharif Vian.Sharif@investecmail.com,
•    Mergence: Farzaanah Richards, Office Manager, Farzaanah@mergence.co.za  +27 21 433 29607
•    MSCI: Martina Macpherson, Vice President, Marketing & Commercial Relationships, martina.macpherson@msci.com, +44 20 7618 2231
•    RisCura: Kerry Sinclair, Head of Marketing RisCura, ksinclair@riscura.com +27 21 673 6999
•    OMIGSA: Jon Duncan, Head of Responsible Investment:  jduncan@omigsa.com; +27 21 509 1014; cc Head of  Media and Communications, Lynn Bolin, lbolin@omigsa.com; +27 21 509 5667
•    SinCo: Graham Sinclair, Principal, +27.82.712.1925 info@sincosinco.com @SinCoESG




SELECTED QUOTES FROM PARTNERS:

 1.  BLOOMBERG
"Bloomberg is committed to supporting the global integration of Environmental, Social and Governance risk and opportunity analysis into sustainable investment decision making. Understanding the current state of the sustainable investment market in Africa and identifying opportunities for further development is a key step in ensuring ESG issues are effectively priced in a market that is expected to see significant growth in the coming years. To that end, Bloomberg is pleased to be a project partner for the first AfricaSIF.org Marketplace Trends Report," – Curtis Ravenel, Global Head, Sustainability Group Bloomberg L.P., New York USA.

2. INVESTEC ASSET MANAGEMENT
 “We are pleased to be a part of this project with AfricaSIF.org and believe it will be an interesting and useful exercise in terms of starting to map the African ESG investment landscape”.  - Therese Niklasson, Head of ESG Research, Investec Asset Management
"As a significant investor in Africa we see the process of identify and measuring the growing importance of ESG in Africa as an important aspect in the process of improving the depth and the quality of Africa's capital markets.  As the last remaining frontier of investment, a strong ESG culture will service the continent well as it seeks to attract greater degrees of global capital flows from increasingly discerning capital allocators." - Malcolm Gray, Portfolio Manager, Investec Asset Management

3. OLD MUTUAL INVESTMENT GROUP SA (OMIGSA)
“Old Mutual Investment Group SA (OMIGSA)'s strong commitment to responsible investment is reflected in our responsible investment and ownership guidelines. AfricaSIF.org is an important study and we are proud to contribute to this project that will support the growth of the responsible investment industry across Africa.” - Jon Duncan, Head of Responsible Investment, Old Mutual Investment Group SA.

4. RISCURA
“These days we are all aware that institutional investors have a responsibility to the world around them. This research will open up an important opportunity for trustees and funds to make a difference.” - Claire Rentzke, Consultant, RisCura Consulting.

5. FROST & SULLIVAN
“Overcoming negative perceptions of the African continent, and the opportunities it has to offer, are still some of the biggest challenges faced in attracting investment. Initiatives like the Marketplace Trends report will go a long way to managing these perceptions more effectively and shifting the paradigm from ‘should we invest in Africa’ to ‘managing risk of not being in Africa.” Hendrik Malan, Operations Director for Africa, Frost & Sullivan.

6. JAKO VOLSCHENK, USB
“Good data about investment practices in Africa is hard to find and currently there seems to be very little incentive for the rest of the world to map the status quo. The work done by AfricaSIF.org will go a long way in improving our understanding of the view of institutional investors in Africa of ESG issues. Investment behaviour tells us much about where the market might move, as well as where pressure needs to be applied to address environmental and social issues in Africa.” -  Jako Volschenk, University of Stellenbosch Business School.

7. MSCI
“We are delighted to be partnering with AfricaSIF.org on the Marketplace Trends Report”, says Martina Macpherson, Vice President, Marketing and Commercial Relationships at MSCI. “Recent developments in (South) Africa, such as changes to Regulation 28 of the South African Pension Fund Act and the launch of the Code for Responsible Investing in South Africa (CRISA) place a growing emphasis on ESG developments in the region. We hope that this Report will help asset owners and managers to better meet their mandates and understand ESG-driven investment risks and opportunities.”

8. SINCO
“At SinCo, we seek to add to the body of knowledge on sustainable investment by sharing ideas with thought-leaders globally,” said Graham Sinclair, Principal of SinCo. “Now as a supporter of AfricaSIF.org from day one, we are pleased to help this research project take shape, and look forward to the new learnings from Africa.”

9. MERGENCE INVESTMENT MANAGERS
"By incorporating environmental, social and governance [ESG] issues into our investment process, we encourage the companies we invest in to strike a balance between profits and being socially responsible, and to actively manage their environmental impact while maintaining high levels of corporate governance standards. We support AfricaSIF.org's initiatives, and expect that this report will improve the understanding of sustainable investment in Africa going forward." – Mark Van Wyk, Portfolio Manager - SRI Debt, Mergence Investment Managers.


FURTHER BACKGROUND NOTES


1. PREVIOUS REPORTS  According to International Finance Corporation (IFC)-funded reports on sustainable investment in 2010 (covering Middle East / North Africa region) as well as the 2011 report (covering Sub-Saharan Africa), the possible market in ESG assets under management in Africa is estimated at over US$ 125 billion. Based on research by SinCo and RisCura, the Sub-Saharan Africa report was launched alongside the Code for Responsible Investment (CRISA) in Johannesburg, South Africa in July 2011. CRISA is regarded as world-best practice in voluntary investor initiatives. MORE AT http://www.africasif.org/knowledgebase.php
See previous SIF marketplace trends reports in:
USA - http://ussif.org/resources/research/
Canada - http://www.socialinvestment.ca/publications.htm
Europe - http://www.eurosif.org/research/eurosif-sri-study/
Asia - http://www.asria.org/publications

2. GLOBAL COORDINATION  The first-ever AfricaSIF.org Marketplace Trends 2012 report is to be released in early December 2012. Sustainable investment benchmarking surveys are conducted every two years in North America, Europe, Asia and Oceania. This is the first-ever Africa report, and will feed into the global Sustainable Investment Forum Trends report released simultaneously in December 2012.

3. AUDIENCE  The audience is wide, covering investment managers, stock exchanges, regulators, legislators, think tanks, advertising agencies, consulting firms, analysts, academia, and the media covering Africa. The report will be a distributed at zero cost electronically with a limited hardcopy run. We expect more than 2,000 downloads of the report.

4. PEOPLE
Partners Group
i.    Mark van Wyk, Mergence Investment Managers
ii.    Adri Joubert & Ryan Andersen, Frost & Sullivan
iii.   Jon Duncan & Fiona Kalk, Old Mutual Investment Group South Africa (OMIGSA)
iv.   Barbara Evans, Bloomberg ESG
v.   Therese Niklasson, Investec Asset Management (IAM)
i.     Adrian Bertrand & Belaina Negash, Government Employees Pension Fund (GEPF)
ii.    Martina Macpherson MSCI ESG
iii.    Gareth Allison, MSCI Africa
iv.    Jako Volschenk, University of Stellenbosch Business School (USB)

AfricaSIF.org Project Volunteer Team
i.     Deon Smith, RisCura & AfricaSIF.org [Project Manager]
ii.    Asmaa El Bacha Blanc, AfricaSIF.org
iii.   Pamela Leste De Perindorge, AfricaSIF.org
iv.   Olivia Muiru, B.Lab & AfricaSIF.org
v.    Avril Harvey, University of Cape Town Graduate School of Business MBA Candidate 2012
vi.   Graham Sinclair, SinCo & AfricaSIF.org
vii.   Keith Comline, Comline Attorneys & UCT Graduate School of Business MBA Candidate 2013
viii.  Adekanmi Lawson, AfricaSIF.org & Edward Nathan & Sonnenbergs (ENS)
ix.   Ian Meaker, AfricaSIF.org & Future Champs
x.    Buyiswa Nodada, Independent Actuaries & Consultants & AfricaSIF.org
xi.   Greg Barker, Sustainable Capital & AfricaSIF.org
xii.  Miles Mudzviti, AfricaSIF.org
xiii. Sam Obamiyi, Craven Cottage Partners


EUROPE

Eurosif a.i.s.b.l. | 331 Rue du Progrès, B-1030 Brussels | Belgium | Telephone: +32 (0)2 274 14 35
Email: contact@eurosif.org | Website: www.eurosif.org


Press Release – For Immediate Release
5th EUROSIF SRI Study Shows Continuing Growth and Sophistication of Sustainable and Responsible Investment.
The 2012 study reports detailed figures against the most common sustainable and responsible investment strategies adopted by European investors and shows that each of these has outgrown the overall market since 2009.
4 October 2012, Brussels – EUROSIF, the European Forum for Sustainable Investment, today releases its 5th Sustainable and Responsible Investment Study, created with the support of Amundi, Axa Investment Managers, Nordea and Pictet.
The key findings of the study are:
Strong market growth is underpinned by increased market sophistication.
European investors are adopting a wider array of responsible investment strategies, often in combination: Sustainability-themed, Best-in-Class, Norms-based screening, Exclusions, ESG Integration, Engagement/voting and Impact investments.
The growth of each responsible investment strategy covered in the study has been stronger than the broader asset management market growth. Four strategies have even grown by more than 90% between 2009 and 2011.
Norms-based screening is the fastest growing strategy with an estimated €2.3 trillion Assets under Management (AuM), ie. a growth of 137% since 2009. In addition, Exclusions of specific sectors, companies or practices and Best-in-Class strategies have experienced growth in AuM of 119% and 113% respectively.
With almost 17% growth, Engagement and voting is still growing in Europe, starting to spread to new markets like Spain or Italy. Integration has grown by 14% over the period.
Impact investing market is included in the survey for the first time reflecting increasing investor interest.
The European market for impact investments is estimated to be €8.75 billion. This reflects the increasing interest of investors in achieving a measureable social and/or environmental impact from their investments.
The market remains more than ever driven by institutional investors while legislative action is perceived as the second most important market driver for the coming years.
According to the study, the main driver for SRI demand continues to be demand from institutional investors. Institutional assets represent 94% of the market today against 92% in 2009.
Since the last study in 2009, legislative drivers have jumped from fifth to second rank in importance. Focus on the role and behavior of investors and financial markets by national and EU legislators is the likely reason of this as several regulators make moves to safeguard Europe from future financial turbulence caused by short-sighted behavior and restore a path to economic growth.
Eurosif a.i.s.b.l. | 331 Rue du Progrès, B-1030 Brussels | Belgium | Telephone: +32 (0)2 274 14 35
Email: contact@eurosif.org | Website: www.eurosif.org
European investors are increasingly adopting investment policies excluding certain types of weapons.
The study finds that almost 50% of Europe’s total AuM now have policies in place which specify the exclusion of companies involved in the manufacture certain types of weapons, the most common being those subject to the international Conventions on Cluster Munitions and Anti-personnel Mines.
In commenting on these results, EUROSIF’s Executive Director, Francois Passant, notes:
“The study shows the continuing sophistication of a fast evolving market as several players are adopting multiple responsible investment strategies, often in combination. This sophistication also highlights the need for enhanced transparency and clarification of practices. It also surely supports our conviction that SRI has the potential to bring some answers to the growing concern by society and policy-makers about reconciling finance with long-term, sustainable growth.”
ENDS

Media contacts:
Anastasius Mpulassikis , Communications, +32 (0)2 274 14 35, anastasius@eurosif.org
François Passant, Executive Director, +32 (0)2 274 14 35, francois@eurosif.org
About Eurosif
Eurosif is a multi-stakeholder sustainable investment membership association whose mission is to Develop Sustainability through European Financial Markets. It works as a partnership of European national Sustainable Investment Forums (SIFs) with the support and involvement of its Member Affiliates drawn from the industry. These include asset managers, ESG rating agencies, research and investment service providers and NGO’s. The association is a not-for-profit entity that represents assets totalling over €1 trillion through its Member Affiliates. Through it EU policy and research activities, Eurosif speaks authoritatively and broadly on SRI (Sustainable and Responsible Investment) issues.
Follow us on https://twitter.com/eurosif.
Notes to the Editor:
1. Detailed definitions of each investment strategies covered are available in the study which can be found here.
2. The study is based on self-reported data from a survey of European institutional investors.
Page 2 of 2




USA

Press Release
US SIF Foundation Launches Research for 2012 Report on Sustainable and Responsible Investing Trends in the United States

CONTACT:

Megan Smith, 202-747-7820, or msmith@ussif.org 

WASHINGTON, D.C.

May 29, 2012

‘Trends Report’ Tracks Influence of Sustainable Investing Strategies in the United States, Set for November Release

US SIF Foundation, the public education and research arm of US SIF, the national nonprofit membership association for the sustainable and responsible investment industry, has launched the research process for its 2012 Report on Sustainable and Responsible Investing Trends in the United States. The organization is contacting more than 500 investment management and advisory firms, and more than 1,000 public plan sponsors, foundations, educational endowments, faith-based institutions and other institutional asset owners, in order to measure the development and influence of sustainable and responsible investing in the United States.

The ‘Trends Report’ is the definitive overview of the institutions, organizations and money managers that consider environmental, social and corporate governance (ESG) criteria to generate long-term competitive financial returns and positive societal impact.


“No other report provides a detailed breakdown of the professional assets under management—across all asset classes—that are engaged in these investing strategies,” said Meg Voorhes, deputy director and research director for US SIF: The Forum for Sustainable and Responsible Investment.  “It plays a critical role in educating investors, companies, policymakers, the media and public about the sustainable and responsible investing practices of institutional investors and money managers.”
The Trends 2012 data request form asks each money manager and institutional investor recipient, through a customized, confidential link, about:


The dollar value of its US-domiciled assets under management that were subject to environmental, social or governance (ESG) criteria, policies, or screens at year-end 2011.
For each of these plans or funds, the environmental (e.g., cleantech, climate change), community development (e.g., affordable housing, community relations), other social responsibility (e.g., labor, human rights) and corporate governance (e.g., executive pay) criteria considered.


The types of strategies it employs in considering ESG criteria (e.g., inclusion, exclusion or integration).
Whether it files or co-files shareholder resolutions at portfolio companies or engages them in private dialogue on ESG issues.


The reasons it considers environmental, social or governance criteria in investment selection and/or shareholder advocacy (e.g., to minimize risk over time, to respond to client or beneficiary demand).
The 2012 edition of the report, expected to be released in November, will be the ninth edition in the Trends series.  The last edition of the report, published in 2010, showed that from the start of 2007 to the end of 2009, a three-year period when broad market indices such as the S&P 500 declined and the broader universe of professionally managed assets increased less than 1 percent, assets involved in sustainable and responsible investing increased more than 13 percent (from $2.71 trillion to $3.07 trillion). 


“While we are interested in determining whether sustainable and responsible investing strategies have continued to gain market share since 2010,” Voorhes said of her research team colleagues, “we also want to get a better picture of the new products and approaches in the field.  Many foundations and family offices, for example, are exploring alternative investments—especially in private equity, real estate and loan funds—with social impact, while major investment firms have announced new products and approaches that consider ‘ESG’ criteria.”


The data collected by the research initiative will also be part of a global report on sustainable and responsible investing trends that US SIF Foundation will produce in partnership with sustainable investment membership organizations in major markets around the world.
Institutional investors and investment managers that wish to participate in the 2012 Trends Report initiative can contact trends@ussif.org for a customized data request link. For additional information about the Trends Report, please contact Meg Voorhes at 202-872-5362 or mvoorhes@ussif.org.  For members of the media who would like additional information about the survey, please contact Megan Smith at 202-747-7820 or msmith@ussif.org.


# # #


US SIF Foundation undertakes educational and research activities in support of US SIF:  The Forum for Sustainable and Responsible Investment (http://www.ussif.org).  US SIF is the US membership association for professionals, firms, institutions and organizations engaged in sustainable and responsible investing. US SIF and its members advance investment practices that consider environmental, social and corporate governance criteria to generate long-term competitive financial returns and positive societal impact. US SIF’s members include investment management and advisory firms, mutual fund companies, research firms, financial planners and advisors, broker-dealers, banks, credit unions, community development organizations, non-profit associations, and pension funds, foundations and other asset owners.


The 2012 Report on Sustainable and Responsible Investing Trends in the United States is being produced with a grant from Wallace Global Fund and additional support from Bloomberg, TIAA-CREF, Legg Mason, Neuberger Berman, Sentinel Investments, Trillium Asset Management, Walden Asset Management and Wespath Investment Management.  US SIF Foundation’s research partner in the Trends Report project is the Tellus Institute, a Boston-based interdisciplinary, non-profit think tank. 


Contact information above



Canada

Thursday, May 5, 2011
For immediate release


Canadian socially responsible investment shows resilience
in the face of financial turbulence

Socially responsible investment (SRI) in Canada has weathered the turmoil of the international financial crisis, and continues to represent about one-fifth of assets under management in Canada.

The most recent survey of assets, the Canadian Socially Responsible Investment Review 2010, shows that for June 2010, assets managed under SRI guidelines in Canada were $530.9 billion . The Social Investment Organization (SIO), which compiled the report, estimates this represents about 19 per cent of the total assets of the pension industry, the asset management industry and the mutual fund industry.

“SRI has shown resilience in the face of tough times brought about by the financial crisis of 2008,” says Eugene Ellmen, Executive Director of the Social Investment Organization. “SRI offers a solid option for Canadians who want to invest in accordance with their personal values, or by integrating environmental, social and governance issues in the investment process.”

The Canadian SRI Review is the only comprehensive survey of SRI in Canada. Now in its sixth edition, the document has been produced by the SIO every two years since 2000.

To download a copy of the full report, click here.


The Social Investment Organization is Canada’s trade association for socially responsible investment. Its members include fund companies, asset management firms, institutional investors, pension funds, financial advisors and consultants. Its members serve more than one million Canadian depositors and investors.


For more information, contact:

Eugene Ellmen
Executive Director
Social Investment Organization
416.461.6042 x 111
ellmen@socialinvestment.ca


The following people are representatives of sponsoring organizations of the report and are also available for comment:


Lucy Becker
VP, Public Relations & Public Affairs
AGF Investments Inc.
416.865.4284 / 1.877.263.3373 x 4284
lucy.becker@agf.com

Priscilla Boucher
VP, Corporate Social Responsibility
Assiniboine Credit Union
204.258.3482
pboucher@assiniboine.mb.ca

Colette Harvey
Conseillère en finance socialement responsible
Caisse d’économie solidaire Desjardins
418.254.1254 / 1.866.247.9677 x 126
colette.harvey@desjardins.com

Robert Walker
VP, Ethical Funds and ESG Services
NEI Investments
604.742.8320
rwalker@NEIinvestments.com

Marcel Mares
Product Manager
IA Clarington Investments
416.860.9880 x 2062
marcel.mares@iaclarington.com

Heather Lang
Director of Research, North America
Jantzi-Sustainalytics
416.861.0403 x 15
hlang@sustainalytics.com

Gary Hawton
CEO
Meritas SRI Funds
519.624.6767
ghawton@meritas.ca

Dermot Foley
Manager – ESG Analysis
Vancity Investment Management
604.975.3314
dermot_foley@vancity.com