Leading Research Centre in France on Responsible Investment, Novethic organizes events to push investors to integrate Environmental, Social and Governance (ESG) issues in their practices.
THE PREVIOUS EDITIONS:
THE 2012 EDITION
The Novethic Annual Event attracted 300 participants and high level speakers from the leading European financial institutions. The 5th edition of « ESG Strategies for Responsible Investors » focused on ESG risks in oil and gas or agricultural commodities and Responsible investment strategies for banks, insurance.
MAPPING OF RESPONSIBLE INVESTMENT IN EUROPE
European asset owners do not have the same definition of ESG integration. Novethic surveyed 115 of them, which manage nearly €5,000 billion in assets across 11 different countries, to better understand their motivations and practices.
DOES SHAREHOLDER'S ENGAGEMENT INFLUENCE COMPAGNIES?
Shareholder engagement is growing in Europe, but not with the same intensity. In Switzerland, Ethos Foundation has worked up to requiring a « say on pay» from the biggest hundred listed companies. In France, ERAFP tries to implement different types of engagement initiatives.
WHAT DOES RI MEAN FOR BANKS AND INSURANCE COMPANIES?
Banks and insurance companies roll out global ESG integration policies across their different businesses, no longer restricting them to asset management. These new commitments are influencing top level strategy and transforming investment policies at major groups.
Fossil fuels are associated to environmental and social risks. NGOs such as Fair Pensions work to raise asset owners' awareness to the price of these risks. Shareholders like Folksam try to influence companies so that they improve their practices.
The agricultural commodities markets are accused of driving up the prices of wheat, rice and cacao, which fluctuate due to differences in supply and demand. The financial products associated with them can lead to reputational risk for financial institutions.
THE PRIORITIES FOR SUSTAINABLE INVESTING IN HEALTHCARE
With the ageing population, rising obesity and chronic diseases, the cost of healthcare is exploding, potentially threatening the right to healthcare. The pharmaceuticals industry now faces scrutiny on the cost of basic treatment and access to medicine worldwide.
Through their commitments and charters, financial institutions define the values they would like to represent and then apply to their investment policies. For the French Ircantec, the RI priorities are more social. For the Swiss Nest, they are ethical and environmental.