GLOBAL - A socially responsible investment (SRI) global equity allocation could produce 40 % lower CO2 emissions than a conventional portfolio indexed to the MSCI World, a study by Pictet Asset Management (PAM) has shown.
The paper started from the assumption that SRI investors, while presumably having enhanced social or environmental returns in mind, widely accepted reporting in terms of financial returns alone.
Christoph Butz, co-author of the report, said: "Institutional investors who invest in a responsible and sustainable manner demonstrate that they act in the best interests of both society and of their beneficiaries.
Butz continued: "While a company's financial performance can be monitored in real time, the same cannot be said for their sustainability endeavours. Our report proposes a practical analytical solution to bridge that gap."
Philippe Spicher, CEO, think tank Centre Info, said: "The reporting of extra-financial performance is a crucial aspect of sustainability portfolios that has long been neglected.
He added: "This paper paves the way for credible extra-financial performance reporting. We believe that investors will increasingly demand this kind of information in order to assess the true value of their SRI investment."
The Pension Protection Fund (PPF) is consulting on proposals to charge a "risk reflective" levy for commercial defined benefit (DB) consolidation vehicles.
The funding gap across FTSE 350 schemes could be slashed by as much as £275bn if schemes look beyond traditional ways of creating value. Victoria Ticha examines how
There will be "many flavours" of defined benefit (DB) consolidators but consolidation will only be the right answer for a minority of schemes, Alan Rubenstein says.
Work and Pensions Committee (WPC) chairman Frank Field has questioned the regulator on what lessons it can learn from the experience of the Kodak Pension Plan No.2 (KPP2).