EUROSIF NEWSLETTER HAS NOW MOVED TO A NEW LOCATION

Eurosif's Newsletter can be now read directly on Eurosif's website at www.eurosif.org. Direct link to the Newsletter section: http://www.eurosif.org/media/newsletter.

EUROSIF UPDATE

2010 European SRI Study to be Launched on October 12 at Annual Member Affiliate Meeting

The highly anticipated 2010 edition of the European SRI Market Study will be released exclusively to Eurosif member affiliates at the Eurosif Annual Advisory Council Meeting on October 12 in Amsterdam. It will then be presented to the public on October 13, 2010, at the Eurosif / Responsible Investor Conference. Events are planned across Europe in partnership with the local SIFs to discuss the results of the study. Please see our Events section for more details. The 2010 study is sponsored by Amundi Group, BNP Paribas Investment Partners, CA Cheuvreux and Edmond de Rothschild Asset Management. For more information please contact research@eurosif.org.

Eurosif Submits Response to EC Consultation on Corporate Governance in Financial Institutions and Remuneration Policies
On September 1, Eurosif submitted its Response to the Public Consultation process opened by the EC's Internal Market and Services DG, making a series of recommendations on the following topics:

• Board of Directors' roles and responsibilities (including on ESG risk management and control)
• Transparency and the duties of third-parties along the ownership chain
• Shareholder engagement in corporate governance issues
• Linking remuneration to environmental, social and governance (ESG) performance
Download the Response. For more information, please contact lobbying@eurosif.org.

Eurosif attends European Multi-Stakeholder Forum on Corporate Social Responsibility Coordination Committee Meeting hosted European Commission
On September 17 in Brussels, Eurosif participated in the preparatory discussion (agenda content development) for the 2010 CSR Multi-stakeholder Forum Meeting, to take place on November 29-30, in Brussels and organised by the Internal Markets and Services DG. Eurosif will be moderating and speaking at various high level panels and can invite a few of its Member Affiliates to participate. If you are interested, please contact lobbying@eurosif.org.

Eurosif Publishes 2010 High Net Worth Individuals & Sustainable Investment Study
On September 13, Eurosif published its 2010 HNWIs & Sustainable Investment Study. Based on a survey of wealth managers and family offices, Eurosif estimates the 2010 European HNWI Sustainable Investment market to be approximately €729 billion, representing an average of about 11% of European HNWIs’ portfolios as of December 31, 2009. This is a growth rate of 35% over the two-year period since the data was previously collected. Following its research, Eurosif predicts that by 2013 the share will have increased to 15%, just below the €1.2 trillion mark.
Download the study here.

Extractives Sector Report to be Published First Week of October
Eurosif, with the research help of GES, will publish its report on the extractives industry the first week of October. A steering committee comprised of professionals from CM-CIC Asset Management, Edmond de Rothschild Asset Management, Schroeders, SNS Asset Management, Threadneedle and Triodos professionals have provided their input and support on this project. Extractives practices can lead to major ESG challenges, which are outlined and paired with business risks and opportunities in the report. For more information or involvement in future reports, please contact Eurosif.

Eurosif to host panel discussion at ESG Europe 2010: Investor Corporate Summit
October 13, Amsterdam, The Netherlands

Eurosif to speak at the Family Offices HNWI Event
October 5, London, United Kingdom

Eurosif to speak at the EU & Economic Crisis Event
October 7, Economic Commission, Brussels, Belgium

Eurosif’s 2010 European SRI Study to be discussed in the Trends and Challenges in the ESG Market Event
October 15, Paris, France

Eurosif to speak at the European Trends in SRI Assets Event
October 18, Brussels, Belgium

Eurosif to speak at the ESG Strategies for Sustainable Investment Event
October 18-21, Brussels, Belgium

Eurosif to speak at oekom research SRI Market Event
October 21, Mein, Germany

Eurosif to speak at the Swiss Family Office Seminar
October 26, Geneva, Switzerland

Eurosif to speak at SRI Study Event organised in partnership with CA Cheuvreux and UKSIF
October 28, London, UK

Eurosif to speak at SPAIN SIF SRI Event
November 2, Madrid, Spain

Eurosif to speak at TBLI Conference
November 11, London, United Kingdom

Eurosif to speak at Italian SIF SRI Event
November 17, Milan, Italy

Eurosif to speak at SRI in the Rockies
November 18-21, San Antonio, TX, USA

Eurosif to speak the Sustainable Finance Geneva (SFG) SRI debate
November 12, Geneva, Switzerland

Eurosif to be a Panel speaker in the CSR Multi-stakeholder Forum 2010 Meeting
November 29-30,European Commission, Brussels, Belgium

EU UPDATE

New EU Bank Supervision Authority Created
On September 22, the European Commission passed an historic bank supervision agreement which looks to improve the governance of these financial institutions in Europe. A new body for market oversight is being created- the European Securities and Markets Authority (ESMA) with the main role of taking over when there is a dispute by national regulators, an emergency or a breach of EU law.
More information on the Paper released by the European Commission on the topic can be found at this link.

EC to Set Stricter National Fiscal Policy
In response to the financial crisis, the European Commission has put forward legislative proposals to strengthen and expand existing tools for coordinating economic and fiscal policy in the EU.
The proposals aim to strengthen the Stability and Growth Pact (SGP) – particularly through an increased focus on public debt and fiscal sustainability – extend surveillance to macroeconomic imbalances and make enforcement more effective through the use of sanctions and incentives.
Read press release.

SRI EVENTS

ESG Strategies for the Sustainable Investor hosted by Finance IQ
October 19-20, 2010, Brussels, Belgium
www.esgstrategies.com or enquire@iqpc.co.uk

VBDO Congress on Investment in Sustainable Forestry
November 4, 2010, Netherlands
http://www.isfcongress.org/

The Annual TBLI Conference Europe 2010 - Triple Bottom Line Investing
November 11-12, 2010, London, UK
www.tbliconference.com

The Annual SRI in the Rockies Conference
November 18 – 21, 2010, San Antonio, TX
www.sriintherockies.com

Impact Investing Forum 2010
November 29-December 1, 2010, London, UK
*Eurosif Member Affiliates receive £250 off - quote code EUROSIF when registering.*
Forum website

Novethic Annual Event: ESG Strategies for Responsible Investors
December 3, 2010, Paris, France
More information

Envirotech & Clean Energy Investor Summit
December 9, 2010, London, UK
Summit website

EDHEC Business School Green Investing Conference
December 10, 2010, Nice, France
Conference website

MEMBER AFFILIATES NEWS

Eurosif Welcomes New Member Affiliate Hermes Equity Ownership Services Ltd.
Hermes Equity Ownership Services (EOS) helps institutional shareowners around the world to meet their fiduciary responsibilities and become active owners of public and private companies. EOS' team of engagement and voting specialists monitor its clients' investments in companies and intervene where necessary with the aim of improving performance. EOS' activities are based on the premise that companies with informed and involved shareholders are more likely to effectively manage risk and achieve superior long-term performance than those without.
Hermes has the largest stewardship resource of any fund manager in the world. The depth and breadth of this resource reflects our philosophy that ownership activities require an integrated and skilled approach. Intervention at senior management and board director level should be carried out by individuals with the right skills and with credibility. Making realistic and realisable demands of companies, informed by significant hands-on experience of business management and strategy setting is critical to the success of our engagements.
Owned by BT Pension Scheme, the UK's largest pension fund, EOS has a strong commonality of interests with the global coalition of investors it represents. Hermes and the BTPS have extensive experience of implementing the United Nations' Principles for Responsible Investment (UN PRI). EOS' Chief Executive Colin Melvin chaired the committee that drew up the original principles, and the current chair is a trustee of the BTPS. This insight enables EOS to help clients who wish to become signatories or have already achieved signatory status to meet the challenges of the PRI.

Dexia AM’s SRI Funds Quality Confirmed by Novethic Labels 2010
For the second consecutive year, Dexia AM has obtained the Novethic SRI label for 19 of its SRI funds, in all asset classes (equity, fixed income, balanced and money market). Dexia AM is widely distinguished with an extensive range of funds that have obtained the label. A pioneer in the domain of Sustainable and Responsible Investment, Dexia AM is proud to receive these labels, which confirm the quality of our SRI analysis and fund management. All our funds that received a Novethic label in 2009, have received it in 2010, except for three funds, which have been absorbed during the year.
More information on Dexia AM SRI internet or Novethic.

Economistas sin Fronteras to Hold Expert Seminar in Madrid
On October 8th Economistas sin Fronteras and the CSR Chair of UNED (Spanish open University) will hold a work seminar on SRI in Madrid, Spain. During the event, “Problemas y retos: Integrando la Responsabilidad Social Corporativa en las decisiones de inversión” (“Problems and challenges: integrating CSR in investment decisions”) participants will discuss and identify key aspects to manage SRI and engagement, nowadays and in the future.
This seminar is addressed to SRI professionals and experts and especially to Collective Investment Institutions, Asset Managers and university researchers, who will participate in two workshops: “SRI criteria: development and problems” and “the way of corporate engagement”.
For more information please visit the following link http://www.ecosfron.org/?opcion=2&cat=10 or contact Johanna Hariri at Economistas sin Fronteras isr@ecosfron.org

Ethix SRI Advisors Aappoints Dr Rory Sullivan as Strategic Advisor
Dr Rory Sullivan, the internationally recognised expert on responsible investment, has been appointed as Strategic Advisor by Ethix SRI Advisors, the leading responsible investment advisory firm in the Nordic region.
Ulrika Hasselgren (CEO, Ethix SRI Advisors) said: “For our clients, responsible investment is increasingly central to how they manage money, the investment decisions that they make and the dialogue they have with the companies in which they invest. The challenge for us is to harness our recognised expertise in areas such as human rights, the defence sector, climate change and environmental management, to offer the research and advice our clients need to deliver on their responsible investment commitments. Appointing Rory is a critical step in our development. He has deep knowledge of the investment industry, extensive experience in integrating environmental, social and governance (ESG) issues into investment processes across a range of asset classes, and expert knowledge in the areas of climate change, human rights and development. “
Contact: Ulrika Hasselgren, CEO Ethix SRI Advisors: 0046 708 211 708 begin_of_the_skype_highlighting 0046 708 211 708 end_of_the_skype_highlighting, ulrika.hasselgren@ethix.se
Rory Sullivan, Strategic Advisor; Ethix SRI Advisors: 0044 7503168205, rory.sullivan@ethix.se

Ethos Appointed as Engagement Partner of Bank Pictet Environmental Fund
Ethos has been selected by Pictet Funds to provide sustainability advice to its newly launched theme fund, “Pictet-Environmental Megatrend Selection.” Specifically, Ethos will engage in dialogue with selected investee companies to convince them to improve their environmental, social and governance practices. By combining asset management and shareowner engagement, Ethos and Pictet innovate in the theme funds management.
Find out more.

Forética Research Publications Launched
Forética has published the latest edition of its RESEARCH. This issue focuses on the phenomenon of demographic change and its impacts on global population and economy. In addition, the publication looks at topics such as the “happiness index” and equality in the workplace and other news stories and current events. In addition, a new issue in Forética’s series of research publications focuses on the topic of water management. The publication explores the link between water management and economic development, and offers a selection of 16 best practices that exemplify the entrepreneurial response to the challenge of water shortages. Read more.

GES Forms Strategic Partnership with Manifest for Enhanced Risk Management
Two of Europe’s leading independent investment service providers within their fields, GES Investment Services and Manifest Information Services, have formed a strategic partnership. Bringing together specialist research in environmental, social and governance issues with global proxy voting services, they present a fully-fledged European solution for Responsible Investment.
Manifest is working closely with GES to integrate their incident watch and risk ratings into Manifest’s tailored voting recommendations so that investors can create custom ESG voting guidelines. In return, GES will receive access to Manifest’s governance data and proxy voting systems, which will reinforce both the foundation for GES’ engagement activities as well as the feasibility of these.
http://www.ges-invest.com/pages/?ID=201

LGT Capital Management Underlines its Commitment to the Field of SRI
As of August 31, 2010, the SRI fund range of LGT Capital Management increased to five. The new fund is called LGT Sustainable Impact Equity Fund (EUR) and is a traditional European Equity Fund that has been transformed to a SRI fund. The global operating investment boutique, a specialist for strategic solutions and traditional investments like equities and fixed income now manages one SRI Bond fund, two SRI Multi Asset Class funds and two SRI Equity Funds.
For more information please click here.

Manifest Forms Strategic ESG Partnership with GES
Two of Europe’s leading independent investment service providers within their fields, GES Investment Services and Manifest Information Services, have formed a strategic partnership. Bringing together specialist research in environmental, social and governance issues with global proxy voting services, they present a fully-fledged European solution for Responsible Investment.
Manifest is working closely with GES to integrate their incident watch and risk ratings into Manifest’s tailored voting recommendations so that investors can create custom ESG voting guidelines. In return, GES will receive access to Manifest’s governance data and proxy voting systems, which will reinforce both the foundation for GES’ engagement activities as well as the feasibility of these.
http://www.ges-invest.com/pages/?ID=201

Oikocredit Becomes Bank Constanta's First International Shareholder
Oikocredit has consolidated its commitment to the Caucasus by becoming the first international shareholder in Georgian MFI Bank Constanta. Oikocredit’s partnership with Constanta dates back to 2005, and since then Constanta has received five Oikocredit loans totaling around €4.5 million. Currently, Constanta primarily offers loan products to the microenterprise sector but will broaden its scope and outreach to include small and medium enterprise financing and other financial services, in urban and rural areas. At the end of 2009, Constanta had 11,500 clients and a portfolio of $31.4 million (approximately €24 million).
Throughout Georgia's 2008 armed conflict, the country lost foreign investors and confidence in the economy wavered. Despite the challenges, Oikocredit maintained a solid partnership with Constanta and other project partners. In addition to investments in Bank Constanta, Oikocredit has loans to other Georgian microfinance organizations, such as FINCA Georgia, MFO Crystal and MFO Credo.
Read more on Oikocredit’s equity investment in Bank Constanta.

oekom research: Development Banks Record Social and Environmental Benefits of Sustainable Lending
oekom research has looked at how 21 of the world’s leading development banks are facing up to their social and environmental responsibilities. On a scale from A+ (highest score) to D-, the European Bank for Reconstruction and Development (EBRD) achieved a B-, followed by the International Bank for Reconstruction and Development (IBRD) and the European Investment Bank (EIB), both of which also scored B-. “A number of positive initiatives are being undertaken, notably in the areas of microcredits, housing subsidies, education financing, business start-ups and renewable energies,” explains Dietrich Wild, Research Director at oekom research and analyst in charge of this sector. Given the vital role of the development banks in infrastructure and development financing, they have a duty to address global challenges such as poverty, climate change and the increasing threat to natural habitats. The sector as a whole still shows room for improvement.
For more information please contact Ines Markmiller.

Sustainalytics Webinar: Thursday, October 28, 4:00 pm – 5:00 pm CDT/ 10:00 am – 11:00 am EDT
Technology hardware companies are facing a challenge to their reputations as good corporate citizens. As consumer appetites for the latest technological devices increase, the demand for key metals such as tin, tantalum, tungsten and gold also increases. This trend clearly improves the bottom line for companies and their shareholders; however, there is an argument that it also increases the war chests of combatants in the Democratic Republic of the Congo. And these combatants are committing horrific human rights atrocities, such as child and slave labour and the mass rape and torture of women and girls. In the last 15 years, studies have found that millions of people in the DRC have died from conflict-related causes.

On October 28, Sustainalytics’ analysts will provide some context and highlight the risks to companies and investors who may be directly or indirectly complicit in this ongoing crisis. Informed by analysis from our recent report, Complicity in the Congo: Investor Risk in the Minerals Supply Chain, Azadeh Sabour and Matthew Barg will share their perspectives on this controversial social issue.

Visit www.sustainalytics.com to register.

Threadneedle Named Leading SRI Fund Manager in 2010 ThomsonExtel survey
Threadneedle has been named Leading Fund Management Firm for SRI in the latest Thomson Reuters Extel/UKSIF Socially Responsible Investing & Sustainability Survey. The 2010 Survey represents the views of over 450 investment professionals from 16 countries, making it the most extensive assessment of SRI in the European investment community. It covers 254 investment management firms and 42 brokerage firms/research houses. The win builds on Threadneedle’s third place ranking last year.
Therese Niklasson, Head of Governance and Responsible Investment at Threadneedle, said: “We are delighted to be awarded Leading SRI Fund Management Firm by Thomson Extel and UKSIF. It acknowledges our success over the past few years in developing a value-adding model and approach for ESG integration. It’s encouraging to see mainstream investors across the board adopting increasingly sophisticated methods of drawing value from sustainability integration and applying them to all levels of the business including investment research, client relationships and portfolio holdings.” Visit Threadneedle’s website for more information.

Triodos Excludes Roche from Investments within Short-term
Recent controversies show that Roche’s clinical trials with transplanted organs in China do not meet Triodos criteria for selection. Roche, based in Switzerland, is a biotechnology company that operates in the fields of pharmaceuticals and medical diagnostics. Former analysis by Triodos Sustainability Research found the company to be eligible for our sustainable investment universe. However, in January this year, a controversy came to light when Roche received the Public Eye Award, sponsored by the Berne Declaration and Greenpeace. The award names and shames corporations with poor social or environmental behaviour. Naturally, Triodos decided to investigate the case and reassess our findings. Since the company no longer meets their human rights minimum standard, it has been excluded from the Triodos sustainable investment universe and will be removed from all Triodos investments within the short term. Read the full article.

UBS Research Focus: The Rush for Resources Challenges Emerging Markets
In its latest UBS research focus, UBS Wealth Management Research (WMR) argues that resource scarcities can have adverse environmental and social consequences for emerging markets and act as a drag on their growth. Making their growth more sustainable will be a formidable task and should open up interesting investment opportunities. Despite the recent economic slowdown, resources are again becoming scarcer. Emerging markets will need to take decisive steps to balance high economic growth with measures to mitigate the adverse environmental and social consequences of strongly rising resource consumption.
The report concludes that:
• Government intervention is playing a growing role in the distribution of resources.
• Water scarcity could constrain the growth of some emerging markets.
• China, now the world's largest energy consumer, is taking steps towards more efficient energy use and renewables.
• In the longer term, low-wage jobs may increasingly move from emerging markets to frontier markets.
• Solutions for more sustainable emerging market growth offer interesting opportunities for companies and investors
Please visit UBS’ website for more information.

SIF NEWS

FIR Launches the First French National SRI Week

With the support of 5 market place organisations and under the High Patronage of the French Ministry for Sustainable Development, the French Social Investment Forum launched the first edition of the French National SRI Week (from October 4th to October 9th, 2010).

This Week aims at convincing individual investors and the public in general to invest in SRI products, by explaining what SRI is about.
62 events, which have been labelled by the FIR for this first edition, will took place throughout France although mainly in Paris, organised by 32 organisations including universities, NGOs, a film makers, etc.

Please contact FIR for more information: contact@frenchsif.org

FFS to Participate in Workshop with Al Gore “Green Economy and Corporate Social Responsibility”
Academy London Stock Exchange, in partnership with the Italian Sustainable Finance Forum (FFS), is the promoter of a training project addressed to the top managers of the Italian economic and financial community with the aim to enhance the culture on sustainability and corporate social responsibility issues, in the view of the green economy. Key note speaker of the workshop will be Al Gore. The event will be held in Milan on October 27th. http://www.finanzasostenibile.it/

Spainsif to Participate in Marketplace of Foretica
On September 30, Spainsif will participate in the “Marketplace of Forética,” a special event where different companies and investors related to Social Responsibility will present and sell their ideas and projects. Spainsif will be present at the event, and all attendees will have the opportunity to learn about Spainsif’s projects, as well as the progress of its annual planning. Most importantly, Spainsif will begin to promote The First Annual Event "Spainsif 2010," to take place on November 2nd. Please see www.spainsif.es for further information.
UKSIF and Thomson Reuters Extel 2010 SRI/Sustainability Survey Awards
The results of the 8th annual Thomson Reuters SRI/Sustainability Survey were announced at the UKSIF Late Summer Event. The leading brokerage firm overall for SRI/Sustainability Research was CA Cheuvreux with Société Generale second and UBS third. Threadneedle Asset Management was named the leading fund management firm for SRI. More information.

VBDO to Publish Benchmark Studies
The VBDO is publishing 3 benchmark studies in the last quarter of 2010. First in line is the benchmark study investigating the Responsible Investment policy of 30 Dutch insurance companies. This report, making use of a brand new evaluation methodology covering multiple asset classes, will be unveiled during a breakfast session in the beginning of November.
The second benchmark study, done in association with the University of Maastricht and research provider EIRIS, will focus on the level of transparency that Dutch foundations, charities and religious institutions provide regarding their Responsible Investment initiatives. This study will be launched December 1 during an afternoon session focusing on the non-profit sector.
The third and final benchmark is the fourth edition of the benchmark study focusing on Dutch pension funds. The 2010 edition rates and ranks the Responsible Investment policies of 60 organisations. Using a similarly updated methodology, this report will be launched during the VBDO Lustrum on December 10. Further information: www.vbdo.nl

SRI Initiatives

UNCTAD’s Investment and Enterprise Responsibility Review Published
On September 1, 2010, the United Nations Conference on Trade and Development published a review of the current state of practices in the area of corporate social responsibility (CSR) among the world’s 100 largest transnational corporations (TNCs) as well as responsible investment (RI) among the 100 largest institutional investors. The Review can be downloaded at the following link.

Forest Footprint Disclosure Launch
Forest Footprint Disclosure seeks to raise awareness of the presence in global supply chains of these commodities and to encourage companies to disclose information about ways they identify and manage the associated deforestation risks. It aims to create transparency and shed light on a key challenge within investor portfolios, where currently there is little quality information.
Through FFD, companies are asked to disclose how their operations and supply chains impact forests worldwide and how they are mitigating these impacts. With this process, companies also gain a better understanding of their own environmental and social dependencies, and how the regulatory frameworks could affect access to resources and the cost of doing business in the long term.
FFD launched last year in the U.K. and 35 companies responded to the questionnaire, including Weyerhaeuser, Adidas, Nike, Unilever, British Airways. Like the early days of CDP, interest in the project is growing. With its U.S. launch, FFD for its 2010 programme sent disclosure requests to 100 leading companies in the U.S. For more information about the launch, questionnaire and results, visit FFD’s website: www.forestdisclosure.com.

Call for Signatories to Statement on California’s Proposition 23
Interested parties are invited to sign a statement expressing investor opposition to CA's Proposition 23 which seeks to effectively overturn the state of California's global warming law, AB32. This investor statement articulates the economic, job, health and national/international policy implications of Proposition 23. It concludes that Proposition 23 would eliminate the clear market signals investors need to invest in California’s clean energy opportunities, would cause California to lose billions of dollars of investment and thousands of jobs, and would increase California’s dependence on fossil fuels while increasing air pollution that contributes to asthma and other public health impacts. The statement will be signed by members of INCR and Principles for Responsible Investment. Additional investor signatories are also welcome, so feel free to forward this to other investors you think may want to sign on. Once investor signatures have been collected, Ceres will arrange a press conference in mid-October to deliver the message of the statement to CA voters and the general public. Please contact Kylee McGee Hamilton via email (hamilton@ceres.org) by Oct. 13th if you would like to be added to the letter.

Uganda Entrepreneurs Business Foundation Aims to Support Young Entrepreneurs
The Uganda Entrepreneurs Business Foundation. The Foundation is a non-profit entrepreneurship and enterprise development organisation registered as a company limited by guarantee, whose main aim is to provide capacity development and business oriented services in a coordinated and integrated manner that empowers the micro, small and medium size entrepreneurs. The
Foundation was founded by mainly graduates of entrepreneurship and small business management.
Encouraging and supporting entrepreneurs and new business is a major priority for the Foundation.
The Foundation is now promoting our scaled up Enterprise Start Programme that mainly targets graduates and University students who constitute the majority of the urban youth in the age bracket of 18 and 35 years. It seeks to provide constructive direction for those who choose or who are forced into self employment. For more information please visit www.businessfoundationug.org.

Governance & Accountability Institute Announces Launch of SustainabilityHQ™
GA Institute announces the launch of its sustainability and ESG knowledge management platform (SustainabilityHQ™), formerly known as INSIGHTS-edge™. SustainabilityHQ™ is a Web-accessed, subscription-based information and knowledge management platform that helps users identify, monitor, track, and better understand the actions of important market players and trends that are re-shaping corporate valuations and reputations. These third parties strongly influence global capital markets through their focus on the investment themes of Sustainability and ESG factors (corporate performance related to environmental management / energy, social issues and corporate governance). More information: www.GA-Institute.com; www.SustainabilityHQ.com