For the past three decades, members of the Interfaith Center on Corporate Responsibility (ICCR) have worked with financial institutions to address the needs of the poor to obtain access to capital for: sustainable development, affordable housing in the U.S. and responsible lending in developing countries. As the credit crisis overspread, Seamus Finn, OMI, a longtime representative of his community at ICCR issued a statement on Sept 26, 2008 on behalf of members of the organization reminding the financial community of the way they discussed these issues with key executives of these institutions, bringing them to the attention of shareholders through the annual proxy. According to ICCR, social investors have filed at least two-dozen shareholder resolutions directed at predatory lending practices, the first of which dates back to 1999. Some of the institutions targeted by investors included Citigroup, Wells Fargo, Bank of America, Household International, and Associates First Capital.

Source : Interfaith Center on Corporate Responsibility

PROXY Governance, a proxy advisory service, recently issued a report which examines proxy voting issues through September 2008 and shows particularly strong support for initiatives to address global warming : resolutions targeting homebuilders and the carbon efficiency of new homes averaged nearly 25% support, while a new, more climate-focused version of the long-running proposal for enhanced sustainability disclosure averaged nearly 24% in the airline sector. Overall, seven resolutions, mostly targeting companies in the energy sector, received more than 30% support, with average support for the campaign inching up to nearly 23%, from 20% last year. Moreover, about 15% of the approximately 190 social proposals voted on so far this year received support from at least 30% of votes cast. This represents a slight decline from last year when 17% reached this level, but a jump from 2005 and 2006, when less than 10% of resolutions reached the 30% threshold.

A pressure group of global investors has launched an initiative to call on almost 9,000 listed companies to sign-up to international standards on human rights, the environment and anti-corruption measures. The 52 investors who manage around US$4.4 trillion in assets have written to companies in the MSCI World, FTSE All-World and IFC Emerging Markets Indices to ask them to sign the United Nations Global Compact, which is a set of 10 principles of corporate responsibility. The investors are all signatories to the UN-backed Principles for Responsible Investment (PRI). They include investors based in the US, Europe, Australia and emerging markets. They argue that companies meeting the standards show improved investment performance over time as a result of better governance. Earlier this year, a group of PRI signatories representing $2.13 trillion in assets, announced they were targeting companies paying lip service to their commitment to the Compact.

Source : UN PRI

New research provided by Trucost reveals a divergence between the carbon performance of some of Australia's largest superannuation funds. The research also suggests superannuation funds could maintain returns and portfolio diversification under a carbon-emission trading scheme. Key findings reveal a 36 percent difference between the largest and smallest carbon footprints of the funds and an eightfold difference in footprints of the equity investment portfolios. Fiona Reynolds, CEO of the Australian Institute of Superannuation Trustees, commented : « Supers funds, as owners of Australia's major corporations, need a greater understanding of how the value of their investments may change under a carbon trading scheme ». Simon Thomas, CEO of Trucost added : « Trustees and portfolio managers could reduce the greenhouse gas emissions associated with holdings to manage exposure of carbon costs. Asset managers could carbon optimise portfolios that employ any investment strategy, while maintaining financial returns ».

Source : Trucost