Responsible investors working together can drive a silent revolution
From www.theguardian.com |Published Friday 22 August 2014 14.02 BST Will Martindale and Miguel Santisteve
Far from ignoring issues such as the impact of climate change or the growth in social inequalities, there is a growing movement within the financial community to respond to these challenges by fostering responsible investments and businesses where long-term thinking is prioritised.
According to recent research by NASDAQ OMX, more than one-third of capital invested by asset managers in publicly-traded companies is currently held in portfolios for at least five years – a key measure for long-term investing – the highest level since the financial crisis.
Long-termism and responsible investing have found two key supporters in recent years. One being the Sustainable Stock Exchange (SSE) initiative where stock exchanges work together to create more sustainable capital markets through enhanced corporate transparency. Secondly, the growing number of institutional investors collaborating through the Principles for Responsible Investment (PRI) initiative to support responsible investment practices. PRI has grown significantly since its early days when a small group of 20 institutional investors representing $2tn launched it in 2006, supported by UN. The initiative now has 1,260 signatories representing $45tn in assets under management (AUM).
But how exactly that collective size translates in terms of… read more>