SRIB
riefings Independent analysis of responsible investment issues
MAY/JUN 2007 — Issue 10
Bond market sparks ethical interests
!"#$%#$&'
Bob Cripps explores the opportunity for SRI in fixed income investments
()*%'+,' -."/'$0%'%12$".,'
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
Screening #%*++.&.@! 1+%7.&;9+,! '*+! ,&2&('*! 1$! 1+%7.&;9+,! 1$! ,%*++.! +;9&1&+,<! =7+)! %'.! /+! -$,&1&0+>! 17'1! &,! ,++F&.@! /$.:,! B&17! -$,&1&0+! +17&%'(!'11*&/91+,!$*!.+@'1&0+>!17'1!&,!+A%(9:&.@! 17+! /$.:,! /+%'9,+! $8! 17+! 9.+17&%'(! .'19*+! $8! 17+&*! &.0+,12+.1<! 4'1&.@! '@+.%&+,>! ,9%7! ',! #1'.:'*:! G! H$$*?,! '.:! E&1%7>! &.! 17+! %$9*,+! $8! -*$0&:&.@! 17+&*! %*+:&1! *'1&.@,! 8$*! /$.:! &,,9+,>! .$*2'(()! @&0+! ,$2+! &.:&%'1&$.! $8! 17+! 89.:&.@! -9*-$,+!',!-'*1!$8!17+&*!%$22+.1'*)<!!
Investment opportunities available 1) Construction of ethical income portfolios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overnment bonds S$0+*.2+.1! /$.:,>! 17$9@7! 0+*)! ,+%9*+>! 7&@7()! (&;9&:! '.:! +',&()! *+'(&,'/(+>! -$,+! '.! &.%*+',&.@! %7'((+.@+! 8$*! +17&%'(! &.0+,1$*,<! K$,1! ('%F! 1*'.,-'*+.%)! &.! 17+! ,+.,+! $8! :+1'&(+:! :&,%($,9*+! '/$91! 17+&*! +A'%1! 89.:&.@! -9*-$,+,<! E$*! +A'2-(+>! ,$2+! +17&%'(! &.0+,1$*,! B$9(:! '0$&:! &.0+,12+.1! &.! Q#! $*! QT!S$0+*.2+.1!/$.:,!&.!17+!F.$B(+:@+!17'1! ,$2+! +(+2+.1! $8! 17+! 89.:,! *'&,+:! /)! 17+! &,,9+,!2')!8&.'.%+!17+!B'*!&.!5*';<!!
#%3' 1%4%5"6/%#$&'2#' %$027)5' 2#4%&$/%#$8' 2#&9.)#7%' ()*%':,' (9$$2#*' 6.2#7265%&'2#$"' 6.)7$27%' ()*%';,' -2.&$'<5""1'="#1' 02$&'/).>%$' ()*%'?,' @2&)=252$A' BC9)52$A'@9$A'D' 5%*2&5)$2"#'32$0' $%%$0' ()*%'E,' F)>2#*'$0%' *.%%#'."9$%G' ()*%'H, ' IJK'I/."' 5)9#70%&'#%3' 752/)$%'70)#*%' $.)7>%.'2#1%L' ()*%'M, ' !)#)12)#'NOP' )&&%$&'&0"3' *."3$0' ()*%'QR,'S%3'P#&9.)#7%' 5)9#70%&'*.%%#' 0"/%'6"527A '
3) Corporate bonds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
N$.:!&,,9+,!1$!8&.'.%+!,$%&'(!7$9,&.@!7'0+!'(,$!/+%$2+!;9&1+!%$22$.<! #$! 8$*! +A'2-(+! 17+! LNZ#! =*+',9*)! [<\]^_! `W"W! &,! /'%F+:! /)! ($'.,! 1$! ,$%&'(!7$9,&.@!$*@'.&,'1&$.,!'.:!&1!7',!/++.!,1*9%19*+:!1$!/+!RRR!*'1+:!U! 17+!7&@7+,1!;9'(&1)<!
SRI Briefings — Independent analysis of responsible investment issues
(Continued on page 2) ISSUE 10, MAY/JUN 2007 , ISSN 1749-589X
!"!
In Brief ….. Business opportunities for asset finance Climate change can bring business opportunities for the asset finance industry according to a new report by the UK Social Investment Forum (UKSIF), Green opportunity: accelerating the financing of the low carbon assets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
x
=7+!$--$*19.&1)!1$!%'-19*+!'!/&@@+*!,7'*+!$8!'!%$2-'.)?,!+.+*@)D *+('1+:!,-+.:&.@!
x x x
I,1'/(&,7&.@!8&*,1!2$0+*!':0'.1'@+<! 4'&,&.@!'B'*+.+,,!B&17&.!17+!,9--()!%7'&.!'/$91!17+!*$(+!$8!(+',&.@!
N+.+8&1&.@!8*$2!&.%*+',&.@!@$0+*.2+.1!8$%9,!$.!17+!,7&81!1$!'!($B! %'*/$.!+%$.$2)<! M$22+.1&.@! $.! 17+! *+-$*1>! #'2! S+.++.>! %7'&*2'.! $8! 17+! E&.'.%+! G! P+',&.@! R,,$%&'1&$.! 3EPR6! ,'&:V! b=7+*+! &,! '! ,&@.&8&%'.1! $--$*19.&1)! 8$*! $9*! ',,+1! 8&.'.%+! 2+2/+*,! 1$! ,9--$*1! 17+! 9,+! $8! ($B! %'*/$.! %'-&1'(! +;9&-2+.1>! /+.+8&1&.@! %(&2'1+!%7'.@+!'.:!&.%*+',&.@!.+B!/9,&.+,,<c! =7+! EPR! &,! 17+! -*&.%&-'(! *+-*+,+.1'1&0+! $8! 17+! ',,+1>! %$.,92+*!'.:!2$1$*!8&.'.%+!,+%1$*,!&.!17+!QT>!B&17!2+2/+*,! '%7&+0&.@!daX!/&((&$.!3e"\X!/&((&$.6!$8!.+B!/9,&.+,,!&.!`WWf<!
Canadian SRI assets show growth Canada’s SRI assets have rocketed to an estimated C$503.6 billion (US$436.3 billion) on the back of growing institutional interest in socially responsible investment, according to a recent study by the country’s Social Investment Organisation (SIO). This is an increase from C$65.5 billion in 2004. =7+! ,19:)! &,! /',+:! $.! '! ,9*0+)! $8! #45! ',,+1,! %$.:9%1+:! +0+*)!1B$!)+'*,<! =7+!,19:)!8$9.:!17'1!Me^]<[!/&((&$.!&.!',,+1,!B+*+!&.0+,1+:! '%%$*:&.@!1$!%$*+!#45!,1*'1+@&+,>!17$,+!&.%$*-$*'1&.@!0'(9+,D /',+:!:+%&,&$.,!'/$91!&.0+,12+.1!,+(+%1&$.!'.:!2'.'@+2+.1! B&17!*&,F!'.:!*+19*.!%$.,&:+*'1&$.,<! =7+! *+2'&.:+*>! Me[[]<`! /&((&$.! &.! ',,+1,! B',! &.0+,1+:! '%%$*:&.@! 1$! /*$':! #45! ,1*'1+@&+,>! -*&2'*&()! /',+:! $.! '! 8&:9%&'*)! '.'(),&,! $8! 17+! *&,F! '.:! *+19*.! %7'*'%1+*&,1&%,! $8! +.0&*$.2+.1'(>! ,$%&'(! '.:! @$0+*.'.%+! &,,9+,! U! '! *+('1&0+()!
.+B!'--*$'%7!&.!#45<! =7+! ,19:)! 8$9.:! 17'1! 17+! /&@! &.%*+',+! &.! #45! ',,+1,! B',! 2'&.()! :9+! 1$! 17+! *+%+.1! ':$-1&$.! $8! #45! -$(&%&+,! '.:! -*'%1&%+,!/)!'!.92/+*!$8!('*@+!-9/(&%!-+.,&$.!89.:,<! b5,,9+,! ,9%7! ',! %(&2'1+! %7'.@+>! 792'.! *&@71,! '.:! &.1+*.'1&$.'(! :+0+($-2+.1! '*+! @+.+*'1&.@! +.$*2$9,! -9/(&%! '.:!8&.'.%&'(!&.:9,1*)!%$.%+*.<!5.0+,12+.1!2'.'@+*,!'*+!.$B! *+%$@.&,&.@!17&,>!'.:!':$-1&.@!,$%&'(()!*+,-$.,&/(+!&.0+,12+.1! -$(&%+,! '.:! ,1*'1+@&+,! ',! '! *+,9(1>c! ,'&:! I9@+.+! I((2'.>! +A+%91&0+!:&*+%1$*!$8!17+!#5Z!&.!'!,1'1+2+.1<!
Hedging the weather UBS Investment Bank has launched the first Global Warming Index (GWI), a tradable benchmark for global investments in the weather derivatives market. Designed to reflect the current need of the investment community it provides a simple transparent way to obtain exposure to the weather asset class. =7+! &.:+A! &,! %$.,1*9%1+:! 9,&.@! (&;9&:>! '%1&0+()! 1*':+:! L+'1&.@! g+@*++! g')! '.:! M$$(&.@! g+@*++! g')! B+'17+*! 8919*+,! %$.1*'%1,<! =7&,! 1)-+! $8! %$.1*'%1! ,+11(+,! $.! 17+! :&88+*+.%+! /+1B++.! 17+! R0+*'@+! g'&()! =+2-+*'19*+! '.:! '! @&0+.!N',+!=+2-+*'19*+>!'%%$*:&.@!1$!QN#<! =7+! SY5! B&((! &.&1&'(()! /+! /',+:! $.! "^! Q#! %&1&+,! &.%(9:&.@! R1('.1'>! M7&%'@$>! P',! h+@',! '.:! C+B! i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riefings — Independent analysis of responsible investment issues
MKI! *$,+! 8*$2! ea<]! /&((&$.! &.! `WW[DW^! 1$! $0+*! e[^! /&((&$.! &.! `WW^DWf>!'%%$*:&.@!1$!'!*+%+.1!*+-$*1!8*$2!HBM<! QN#! &,! 7$-+89(! 17'1! 17+! &.:+A! B&((! 19*.! 17+! %$2-(+A&1&+,! $8! &.0+,1&.@!&.!17+!B+'17+*!&.1$!'!-$-9('*!',,+1!%(',,<!b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
!a!
In Brief ….. Kew Insurance launches green home policy UK insurance brokers Kew Insurance have launched an innovative Simply Green home insurance policy, which offers discounts ranging from five percent to 20 percent off the usual cost of home insurance. The policy will reward home insurance customers who make the ‘Green Promise’ to take measures to cut carbon emissions within their home. L$2+$B.+*,! B7$! 1'F+! 2&.$*! ,1+-,! 1$! &2-*$0+! 17+&*! 7$9,+7$(:?,! %'*/$.! 8$$1-*&.1>! ,9%7! ',! &.,1'((&.@! ($81! &.,9('1&$.>! :$9/(+! @('p&.@>! :*'9@71! +A%(9:+*,! '.:! ($B! +.+*@)!(&@71!/9(/,>!,B&1%7&.@!$88!+(+%1*&%'(!'--(&'.%+,!'1!17+! 2'&.,! '.:! *+%)%(&.@! B',1+>! B&((! +'*.! 8&0+! -+*%+.1! :&,%$9.1,<! =7+)! B&((! *+%+&0+! '! %7+%F(&,1! '.:! 29,1! ,'1&,8)! 8&0+!$91!$8!17+!"W!q@*++.!%*&1+*&'?<! E$*! 17$,+! B7$! 2'F+! 2'J$*! %7'.@+,! B&17&.! 17+&*! 7$2+,! ,9%7! ',! 17+! &.,1'(('1&$.! $8! ,$('*! -'.+(,! $*! '! B&.:! 19*/&.+! 17+*+!B&((!/+!'!`W!-+*%+.1!:&,%$9.1!'0'&('/(+<!
5.! '::&1&$.! 1$! 17+! ,'0&.@,! '0'&('/(+! 17*$9@7! 17+! #&2-()! S*++.! -$(&%)>! T+B! $88+*,! '! -*&%+! 2'1%7! /+.+8&1>! -*$2&,&.@! 1$! 2'1%7! '.)! %$2-+1&1$*?,! ;9$1+! -*$0&:+:! &1! &,! (&F+D8$*D(&F+! %$0+*<! bY+! '*+! 0+*)! -(+',+:! 1$! /+! 17+! 8&*,1! 7$2+! &.,9*'.%+! &.1+*2+:&'*)!1$!*+B'*:!$9*!%9,1$2+*,!B7$!2'F+!'!@+.9&.+! S*++.! H*$2&,+! 1$! %91! %'*/$.! +2&,,&$.,! B&17&.! 17+! 7$2+>c! %$22+.1+:! g'0&:! N$).+11+>! 2'.'@&.@! :&*+%1$*! $8! T+B! 5.,9*'.%+<! 5.,9*+*,!P+@'(!G!S+.+*'(!9.:+*B*&1+!17+!-$(&%&+,<!
Ethical investment amongst UK customers grows Ethical investment is on the increase in the UK, according to recent research by Friends Provident. The life and pensions provider has seen the number of new retail customers investing ethically more than double in the past 10 years. 4+%+.1()! E*&+.:,! H*$0&:+.1! '..$9.%+:! 17'1! &1,! 2'.'@+:! +17&%'(!89.:,!7':!-',,+:!17+!dX!/&((&$.!3e^!/&((&$.6!2'*F<! =7+! *+,+'*%7! /',+:! $.! 17+! -*$0&:+*?,! `W]>WWW! +17&%'(! &.0+,12+.1! %9,1$2+*,! +A'2&.+:! 1*+.:,! &.! ,$%&'(()! *+,-$.,&/(+!&.0+,12+.1!'.:!*+0+'(+:!17'1V!
x
=7+!'0+*'@+!'@+!$8!'.!&.0+,1$*!B7+.!17+)!8&*,1!&.0+,1!+17&%'(()! 7',!*&,+.!8*$2!X\!&.!"aa]!1$!["!%9**+.1()<!
x
=7+*+!&,!'.!&.%*+',+!&.!17+!'@+!$8!+17&%'(!&.0+,1$*,>!,9@@+,1&.@! $(:+*!-+$-(+!'*+!&.!19.+!B&17!,$%&'(()!*+,-$.,&/(+!&.0+,12+.1<!5.!"aaf>! "\!-+*%+.1!B+*+!$0+*!^Wk!17+!%9**+.1!8&@9*+!&,!`X!-+*%+.1<!
x
I17&%'(!&.0+,12+.1!&,!.$1!@+.:+*!,-+%&8&%>![f!-+*%+.1!$8!&.0+,1$*,! /+&.@!8+2'(+!'.:!^`!-+*%+.1!2'(+<!
x
R(17$9@7!'(2$,1!'!;9'*1+*!$8!+17&%'(!&.0+,1$*,!'*+!/',+:!&.! P$.:$.!17+*+!&,!'(,$!'!@*$B&.@!%$22&12+.1!1$!+17&%'(!&.0+,12+.1!&.!
17+!*+@&$.,>!"X!-+*%+.1!$8!+17&%'(!&.0+,1$*,!'*+!8*$2!17+!K&:('.:,>!"W! -+*%+.1!8*$2!17+!#$917!$8!I.@('.:!'.:!+&@71!-+*%+.1!8*$2!+'%7!$8! Y'(+,!'.:!17+!Y+,1>!P'.%',7&*+!'.:!i$*F,7&*+<! bH+$-(+! 8*$2! '((! B'(F,! $8! (&8+! '*+! 8&.:&.@! 17'1! ,$%&'(()! *+,-$.,&/(+! &.0+,12+.1! &,! '! *+'(! $-1&$.! 8$*! '.)/$:)! B7$! %'*+,!'/$91!B7'1!17+&*!2$.+)!&,!:$&.@>c!,'&:!O9(&'!g*+/($B>! 2'*F+1&.@! 2'.'@+*! 8$*! ,$%&'(()! *+,-$.,&/(+! &.0+,12+.1! '1! E*&+.:,!H*$0&:+.1<! #9%7!@*$B17!&,!/$*.+!$91!/)!17+!5.0+,12+.1!K'.'@+2+.1! R,,$%&'1&$.>! B7&%7! -9/(&,7+:! 8&@9*+,! ,7$B&.@! 17'1! +17&%'(! 89.:,! 9.:+*! 2'.'@+2+.1! &.! r"! `WW]! ,'B! '.! &.%*+',+! $8! +&@71! -+*%+.1! $.! 17+! -*+0&$9,! ;9'*1+*! '.:! 9-! `"! -+*%+.1! 8*$2!r"!(',1!)+'*>!-',,&.@!17+!d^!/&((&$.!2&(+,1$.+<! C+1!*+1'&(!,'(+,!$8!daa<\!2&((&$.!B+*+!'(2$,1!:$9/(+!17$,+! ,++.! &.! r[! `WWf! '.:! B+*+! 17*++! 1&2+,! 7&@7+*! 17'.! 17+! ,'2+!;9'*1+*!&.!17+!-*+0&$9,!)+'*<! Editor:
Seeking a wider audience for your research, news and events?
! ! !
SRI Briefings and The London Accord welcome quality research and events listings from industry analysts, professional bodies and institutions in the sustainable investment field.
! ! ! ! ! !
Contact the Editor, SRI Email: sdrury@srib.co.uk
Briefings.
#9,'.!g*9*)!l!! Tel: m[[!3W6"\a`!^X[\WXn^`^]W^!l!! Fax: m[[!3W6"\a`!^`]^[W!l!! Email: ,:*9*)o,*&/<%$<9F!!
Publisher: L9*,1B$$:!5.8$*2'1&$.!#+*0&%+,>!! g$B.!P$:@+>!! L9*,1B$$:!P'.+>!! =9./*&:@+!Y+((,>!! T+.1>!! =C[!\iR>!! Q<T<!! Subscriptions: ǧ^WW!8$*!f!&,,9+,!-+*!)+'*<! Email: ,9/,%*&/+o,*&/<%$<9F!!
www.srib.co.uk Or visit The London Accord www.london-accord.co.uk
at:
SRI Briefings — Independent analysis of responsible investment issues
ISSUE 10, MAY/JUN 2007 , ISSN 1749-589X
!"W!
j!L9*,1B$$:!5.8$*2'1&$.!#+*0&%+,! Copyright: Y7&(+! B+! B'.1! )$9! 1$! 2'F+! 17+! /+,1! 9,+! $8! #45! N*&+8&.@,>! B+! '(,$! .++:! 1$! -*$1+%1! $9*! %$-)*&@71<! Y+! B$9(:! *+2&.:! )$9! 17'1! %$-)&.@! &,! &((+@'(<! L$B+0+*!-(+',+!%$.1'%1!9,!:&*+%1()!,7$9(:!)$9!7'0+!'.)!,-+%&'(!*+;9&*+2+.1,<! Y7&(+! '((! *+',$.'/(+! %'*+! 7',! /++.! 1'F+.! &.! 17+! -*+-'*'1&$.! $8! 17&,! -9/(&%'1&$.>! .$! (&'/&(&1)! &,! '%%+-1+:! /)! 17+! -9/(&,7+*,! .$*! /)! '.)! $8! 17+! '917$*,! $8! 17+! %$.1+.1,!$8!17+!-9/(&%'1&$.>!8$*!'.)!($,,!$*!:'2'@+!%'9,+:!1$!'.)!-+*,$.!*+()&.@!$.!'.)!,1'1+2+.1!$*!$2&,,&$.!&.!17+!-9/(&%'1&$.<!R((!*&@71,!*+,+*0+:k!.$!-'*1!$8! 17&,!-9/(&%'1&$.!2')!/+!*+-*$:9%+:>!,1$*+:!&.!'!*+1*&+0'(!,),1+2!$*!1*'.,2&11+:!&.!'.)!8$*2!$*!/)!'.)!2+'.,>!+(+%1*&%'(>!2+%7'.&%'(>!-7$1$%$-)&.@>!*+%$*:&.@>!