sustainable and responsible investing: where are we and where do we go from here?
DESCRIPTION
Sustainable and Responsible Investing: Where Are We and Where Do We Go From Here?. Brussels, December 3, 2012. EUROSIF – The leading pan-European sustainable investment membership association. 1. Proximity to EU domestic markets via national SIFs. 2. Multi- stakeholder organisation. 3. - PowerPoint PPT PresentationTRANSCRIPT
Sustainable and Responsible Investing:
Where Are We and Where Do We Go From Here?
Brussels, December 3, 2012
EUROSIF – The leading pan-European sustainable investment membership association
Proximity to EU domestic markets via national SIFs
1
Multi-stakeholder organisation
2
European focus
3
• Partnership of 8 national SIFs• Supported by about 70 Member Affiliates
A multi-stakeholder organisation with around 70 Member Affiliates
Eurosif Key Activities
Promotion of SRIMember Affiliate Network Servicing
Created with the support of:
Created with the support of
Introduction: No Single Market for SRI
Simplified Country Perspectives on SRI
Country Key SRI practices Regulatory Highlight Select SRI FactsBelgium Norms-based; Best in
Class, ExclusionsInvestment in anti-personnel mines is forbidden (March 2007)
BEAMA / Febelfin Initiatives; Strong retail penetration
France Best in class / positive screening/ ESG Integration
Article 225 (2012) on ESG reporting for Asset Managers; Grenelle II
Role of French Employees Savings Plans
United Kingdom
ESG Integration & Engagement
Statement of Invest. Principles (pensions, 2000)
UK Stewardship Code (2010)
Strong PRI signatory base
Netherlands
ESG Integration & Engagement, Exclusions
Pending legislation to ban investment in cluster munition (2013)
Influence of large Pension Funds
Top market in most strategies
Overview of SRI Strategies Used in Europe
Source: Eurosif
Growth Compared to Overall Market
Source: Eurosif, EFAMA
Sustainability themed
• Almost doubled since 2009• Now found in almost all countries surveyed• Demand growing in Holland, Germany, UK, Switzerland
Source: Eurosif
Exclusions
• Covers ~28% of European total AuM• Key drivers: German, Swiss and Dutch markets• Policies covering cluster munitions and anti-personnel
mines now cover 48% of Europe’s AuMSource: Eurosif
Impact Investing – Space to watch
• Institutional and retail investment assets. • Excludes Development finance + community
banking deposits
Total size of market is:€ 8.75 billion
Source: Eurosif
Breakdown by type of investor
Europe Retail Average: 6% (Spain 3%)Relative Decline vs Institutional
Source: Eurosif
Drivers of SRI Demand
Legislative drivers
Legislative drivers
Source: Eurosif
Red Flag !!
HNWI remain a key distribution channel for SRI
• Increase by ~60% between 2009 and 2011• Overall European HNWI Wealth increased by 18%
Source: Eurosif, 2012
+58%
+18%
Share of Sustainable Investments in Total HNWI Portfolio
Source: Eurosif, 2012
• The share of wallet of Sustainable Investments has increased• HNWIs allocating over 50% to SI have doubled (25%)
Attitudes to Sustainable Investments
Source: Eurosif, 2012
Source: Eurosif, 2012 Note: impact investing not directly comparable with previous years
Thematic and Best-in-Class are popular with HNWI
• Positive screening and Sustainability-themed mostly used• Substantial increase of Impact Investing• Strategies often combined in a portfolio (Core-Satellite)
Conclusions
• All strategies have grown since 2009 (faster than market)
• Increasing investor interest for Impact Investing
• Institutional investors remain key drivers
• Data shows continuous demand by European HNWI
• However, general retail demand remains a challenge
How can the industry address this?
Rue du Progrès 331B- 1030 Bruxelles+32 274 14 35
www.twitter.com/eurosif
facebook/eurosif
LinkedIn/eurosifhttp://www.linkedin.com/groups/Eurosif-3290984/about
Registered Office: La Ruche, 84, Quai de Jemmapes, 75010, Paris, France
Contact / Follow Eurosif
Sustainability Themes Used (ex. Impact Investing)
• Strong domination on environmental issues (energy / climate)
• But all themes have experienced growth, indicating that other themes become increasingly attractive (eg. health)
Source: Eurosif, 2012
Back-up
Impact Investing Approaches Used
• Microfinance preferred but less so than with overall market (55%)
• Attractiveness of Social Business investments is higher than the overall market (19%)
Source: Eurosif, 2012
Back-up
Motivations for Sustainable & Impact Investing
Source: Eurosif, 2012
Sustainable Investment Impact Investing
Back-up
Sustainable Investment
Barriers to Sustainable & Impact Investing
Impact Investing
Back-up