The more I see big money building sustainability into the picture, the happier I am. Check this out...
The world’s largest pension funds and money managers are putting their money where responsible investing is after a UN initiative to adopt ‘green’ principles drew more than 60 signatories with a total $6 trillion in assets under management.
Following a year of collaboration with more than 20 pension funds, foundations and special government funds around the world, the UN co-drafted six ‘Principles for Responsible Investments’.
These principles, which will be adopted voluntarily by the signatories, list 35 possible actions that institutional investors could undertake to incorporate good environmental, social and corporate governance into their investment activities.
That's all good, but here's the part that is music to my ears...
Mercer IC’s global head Tim Gardener said that drawing up the principles was driven by a "simple investment reality". While many companies acknowledge the negative impact of poor environmental, social and corporate governance factors, many of them do not factor those issues into their decision making.
“This leaves room for corporate scandal, environmental degradation and human rights abuses – all of which can affect both a company’s bottom line and its share price," said Gardener.
Knut N Kjaer, executive director of the $330 billion Norwegian Government Pension Fund, agreed that paying more than just lip service to responsible investing has its financial rewards. “We manage assets for future generations and acknowledge the link between long-term return and the governance of companies, markets and economies,” he said.
In a nutshell, it seems to be increasingly seen as good business sense to build responsibility (and sustainability) into the picture. And let's face it - money drives change.
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