Responsible Investing Takes Root Premium

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Responsible investment is moving from being a niche in the asset management universe to increasingly becoming mainstream. In Europe, especially, it appears to be taking off. This article identifies some of the key drivers and the challenges that responsible investment poses to investors and managers as they try to take this novel field and embed it into their institutional practices. Looking to the future, the author highlights three areas that he believes will need close attention: new financial strategies to deal with problematic industries; the role of Chief Sustainability Officer will become increasingly strategic; and the transparency requirements being demanded for public companies will need to apply to private ones, too, otherwise the diffusion of these practices will only be partial and their impact greatly reduced. Though much remains to be done, the author believes this is an opportune moment for institutionalizing responsible investment and ushering in a new, more sustainable age of capitalism.
Bibliographic citation: Ferraro, Fabrizio, "Responsible Investing Takes Root: Seeds of Change", IESE Insight, No. 16, First Quarter 2013, pp 33 - 40

Reference: 10.15581/002.ART-2314 (DOI)
Date: 18/03/2013
Author(s): Ferraro, Fabrizio
Document type: Non-refereed article
Languages: Spanish / English
Company(ies): PIMCO, Blackrock, KKR, Domini, Calvert, Trillium, BT, Hermes, APG, PGGM, Norwegian Government Pension Fund, CalPERS, Swiss Re, Deepwater Horizon, BP, Interfaith Center on Corporate Responsibility, Global Reporting Initiative, International Integrated Reporting Committee, KLD, Jantzi Research, Innovest, Vigeo, Eiris, MSCI, Bloomberg, Thomson Reuters, U.N. Principles for Responsible Investment