99
The IRRI Survey 2015 Independent Research in Responsible Investment 1
The IRRI Survey 2015Independent Research in Responsible Investment
1
2
Steve KellyManaging DirectorExtel WeConvene
www.extelsurveys.com
Mike TyrrellEditor
SRI-CONNECTwww.sri-connect.com
Identifying Excellence
Independent Research in Responsible Investment (IRRI)
• The IRRI Survey is the globally-authoritative review of trends in independent SRI & corporate governance research
• In 2015, 1,287 analysts, portfolio managers, CSR & IR managers from 681 firms participated in the survey
• … and 538 individual analysts, salespeople and managers from 836 firms were voted for
• For full results and further information on investment research & company-investor communications:
• www.extelsurveys.com | [email protected]• www.sri-connect.com | [email protected]
5
Contents
• ABOUT ASSET OWNERS ... p.7
• ABOUT ASSET MANAGERS ... p.18
• ABOUT SELL-SIDE BROKERS: RESEARCH PRACTICE … p.22
• ABOUT SELL-SIDE BROKERS: CLIENT, PRODUCT & MARKET … p.30
• ABOUT QUOTED COMPANY INVESTOR COMMUNICATIONS … p.36
• COMPANY INVESTOR COMMS: FRUSTRATIONS & IMPROVEMENTS … p.49
• COMPANY INVESTOR COMMS: RANKINGS & RATINGS … p.54
• ABOUT SRI & CG RESEARCH PROVIDERS: RESEARCH PRACTICE … p.58
• ABOUT SRI & CG RESEARCH PROVIDERS: CLIENT SERVICE … p.63
• ABOUT SRI & CG RESEARCH PROVIDERS: RANKINGS & RATINGS … p.68
• ABOUT SRI INDICES ... p.85
• INNOVATION & THE FUTURE ... .p.88
• CONCLUSION … P.98
6
ABOUT ASSET OWNERS
7
Asset owners: Survey participants
8
55%
15%
13%
9%
8%
Pension Fund / providers
Endowment Fund
Insurance Fund
Other (please specify)
Sovereign Wealth Fund
Asset owners: Who manages your (fixed income & equity)assets?
9
36%
65%
In-house
By external managers
Asset owners: Which SRI strategies do you deploy?
10
21%
18%
16%
15%
15%
15% Engagement
Exclusionary screening
Active corporate governance
Integration
Sustainability theme investing
Industry & public policy advocacy
Asset owners: How much resource do you devote to SRI & Corporate Governance?
11
29%
24%
21%
13%
13%Full time employees (FTEs)
2-5 FTEs
1 FTE
<25% of an FTE
c.50% of an FTE
5+ FTEs
Asset owners: How is your time allocated to SRI & Corporate Governance spent?
12
27%
20%
15%
15%
13%
10%
Reporting & communications
Manager monitoring
Other
Industry & public policy advocacy
Manager selection
Asset allocation
Asset owners: Do your new mandates require asset managers to integrate sustainability & corporate governance factors into their investment decisions?
13
47%
39%
14%
Yes – EXPLICITLY in the mandate - we require managers to take sustainability and corporate governance factors into account where relevant
Yes – IMPLICITLY - we expect managers to take all relevant factors into account – including sustainability and corporate governance factors
No – we do not include these factors within the mandates that we issue to managers
Asset owners: Do your existing mandates require asset managers to report on how they integrate sustainability & corporate governance into their investment decisions?
14
33%
17%29%
21%
Yes – IMPLICITLY – we expect managers to report on all drivers of performance – including, where applicable, sustainability & corporate governance related drivers
Yes – EXPLICITLY – for NEW / RECENT mandates, we require managers to report explicitly on any efforts they have made to incorporate these factors within their investment decision-making
Yes – EXPLICITLY – for ALL mandates, we require managers to report explicitly on any efforts that they have made to incorporate these factors within their investment decision-making
No – we do not require managers to report on these factors
Asset owners: How is stewardship and engagement on your fund carried out?
15
44%
28%
23%
5%
We engage directly with the companies that we hold on SRI & CG issues
We outsource engagement activities to a specialist 3rd party
We expect our contracted asset managers to engage with companies on our behalf
We do not engage actively in 'stewardship' activities
Asset owners: Do you publish a regular report on your SRI & Corporate Governance activity?
16
Yes69%
No31%
Which asset owner contributes most to the wider SRI debate?
17
VotersAMsAOsBrokersResFrm
1. CalPERS2. PFZW (Stichting Pensioenfonds Zorg en Welzijn)3. ERAFP4. Government Pension Fund Global (Norway)5. ABP6. Environment Agency (Pension Fund)7. AP48. CALSTRS9. Fonds de réserve pour les retraites - FRR10. Cometa Pension Fund
Full results on SRI-CONNECT here
ABOUT ASSET MANAGERS
18
Which asset manager or owner best uses SRI or CG research?
19
VotersResFrm
1. Nordea Investment Management2. Comgest3. BMO Global Asset Management4. ERAFP5. Amundi6. PGGM7. Cometa Pension Fund8. CalPERS9=. Colonial First State Investment9=. Mirova - Natixis Asset Management9=. RobecoSAM
Full results on SRI-CONNECT here
Which ASSET MANAGER analyst best understands the challenges & opportunities facing your company?
Full results on SRI-CONNECT here
20
VotersCOs
1. Cedric Laverie (Amundi)2. Véronique Bresson (Amundi)3. Jérôme Sauty de Chalon (Amundi)4. Ingo Speich (Union Investment)5. Makiko Ashida (Bank J. Safra Sarasin)6=. Zineb Bennani (Mirova - Natixis Asset Management)6=. Marina Iodice (Mirova - Natixis Asset Management)8=. Julien Girault (Amundi)8=. Marissa Blankenship (Allianz Global Investors)8=. Marie-Sybille Connan (Allianz Global Investors)8=. Edouard Dubois (Blackrock Investment Management)8=. Michael Herskovich (BNP Paribas Investment Partners)
Which asset managers contribute most to the wider SRI debate?
21
1. Nordea Investment Management2=. Amundi2=. BMO Global Asset Management4. Comgest5. Aviva Investors6. RobecoSAM7. PGGM8. BNP Paribas Investment Partners9. Colonial First State Investment10. Mirova - Natixis Asset Management
Full results on SRI-CONNECT here
ABOUT SELL-SIDE BROKERS: RESEARCH PRACTICE
22
Where are the strongest links between sustainability & corporate governance factors and company valuation?
23
1. Company strategy (24%)
2. Industry analysis - competitive positioning in changing markets (23%)
3. Economic analysis - growth & macro themes (19%)
4. Capital allocation, operational efficiency & cash flow management (18%)
5. Valuation techniques (16%)
6. Other (1%)
Which of your own research pieces best integrated sustainability or corporate governance factors with an investment recommendation?
(Self-nominated by brokers)
• CLSA• Red Flags - Forensic analysis of accounting anomalies - August 2015• Battery Ram - Energy storage March 2015• China Cleantech - Sunburned Sept 2015• Clients of CLSA can contact Philip Whalley for these reports
• DZ Bank• SRI Alert Volkswagen (September 2015)• Smart & Sustainable Life (May 2015)• Semiconductors - Driver for Energy Efficiency (July 2015)• Clients of DZ Bank can contact Marcus Pratsch for these reports
24
VotersBrokers
Which of your own research pieces best integrated sustainability or corporate governance factors with an investment recommendation?
(Self-nominated by brokers)
• Exane• Voting right distortion (Mar-15)• Cybersecurity (Nov-14)• Allocation, allocation, allocation (Nov-14)• Clients of Exane can contact Yohann Terry for these reports
• HSBC• Stranded Assets: what next?• Green buildings and climate• Clients of HSBC can contact Ashim Paun for these reports
25
VotersBrokers
Which of your own research pieces best integrated sustainability or corporate governance factors with an investment recommendation?
(Self-nominated by brokers)
• KeplerCheuvreux• Tax report• Clients of KeplerCheuvreux can contact Stephane Voisin for this report
• Morgan Stanley• Addressing Climate Change and the Investment Implications (August)• Embedding Sustainability into Valuation (January)• Insurance and Technology: Opportunities for growth in Africa• Clients of Morgan Stanley can contact Jessica Alsford for these reports
• Natixis• Banks: Energy Climate change strategies in the banking sector• Banks: Forex manipulation - investment banking governance called into question yet
again• Banks: BNP - Between American legal imperialism and poor risk management,
governance/business/ethics/reputation of the Bank are in the balance• Clients of Natixis can contact Thomas Girard for these reports
26
VotersBrokers
Which of your own research pieces best integrated sustainability or corporate governance factors with an investment recommendation?
(Self-nominated by brokers)
• Oddo• Supply Chain: field experience confirms the importance of health and safety (May
2015)• Intangible capital: how a strong digital strategy provides a leading edge (April 2014)• ESG convictions for 2015• Corporate Governance Large Caps Europe (April 2015)• Quality of management French midcaps (Nov 2014)• Clients of Oddo can contact Jean-Philippe Desmartin
• Societe Generale• True colours - Controversial food & beverage additives (June 2015)• Pharmaceutical marketing (Nov 2014)• Beyond the Hype• SRI – Beyond integration• CEO Value (May 2015)• Clients of Societe General can contact Yannick Ouaknine
27
VotersBrokers
Broker use of independent SRI or CG research firms?
28
VotersBrokers
27%
25%19%
15%
6%
4%2% 2%
How do you use independent SRI or CG research firms?
We use them as data suppliers
We occasionally read their research /attend their presentations
We use them as news suppliers
We use them for specialist analysis on ad-hoc projects
We use them as ratings suppliers
We don’t use them at all
We use them for analysis on a sustainedbasis
We use them as a fully-integrated part ofour own research offer
Which SELL-SIDE analyst best understands the challenges & opportunities facing your company?
Full results on SRI-CONNECT here
29
VotersCOs
1=. Orith Azoulay (Natixis Securities (Investment Research))1=. Yannick Ouaknine (Societe Generale Securities (Investment Research))
3=. Erwan Crehalet (Exane BNP Paribas (Investment Research))
3=. Samuel Mary (KeplerCheuvreux (Investment Research))5. Stéphane Voisin (KeplerCheuvreux (Investment Research))
6=. Tristan Sanson (Exane BNP Paribas (Investment Research))
6=. Micke Jåffs (KeplerCheuvreux (Investment Research))6=. Thomas Girard (Natixis Securities (Investment Research))
6=. John Quealy (Canaccord Genuity)6=. Marcus Pratsch (DZ BANK (Investment Research))6=. Hubert Jeaneau (UBS (Investment Research))6=. Jean-Philippe Desmartin (Oddo Securities (Investment Research))
ABOUT SELL-SIDE BROKERS: CLIENT, PRODUCT & MARKET
30
How could sell-side brokers improve their SRI & CG service to asset managers?
31
VotersAMs
All comments on SRI-CONNECT here
Many thanks to WorditOut for:All word clouds in this presentationwww.worditout.com
How could asset managers improve the way they communicate their needs to brokers? (Broker view)
Headline responses• "Information on what they are interested in: Quarterly updates on their
sector, stock and thematic interests"• "Highlight which portfolio managers within their firms show a
commitment to integrating material ESG factors into the investment process."
• "Ensure that individuals/team responsible for broker reviews canvas opinions of SRI/CG teams, and/or from mainstream investment teams on the importance or otherwise of SRI/CG/ESG research to them, what kind of research is required and valued.“
Link to all responses on SRI-CONNECT
32
VotersBrokers
Brokerage commission for SRI & CG research (asset manager view)
33
VotersAMs
31%
29%
18%
18%
4%
How explicit are you about the way that you allocate brokerage commission for SRI & CG research?
We don't allocate brokerage commissionfor SRI / CG research
SRI / CG research is considered as part ofour firm's overall allocation
The SRI / CG team has a specific vote /commission pot to allocate
I don't know
Each individual SRI analyst / PM allocatescommission
Brokerage commission for SRI & CG research (broker view)
34
VotersBrokers
30%
24%
20%
17%
9%
How transparent are your clients in their allocation of commission for SRI or CG research?
Client is interested in SRI or CG - but noallocation of commission is apparentNo apparent interest in SRI or CG at theclientQualitative comment within overall review
Clear quantitative allocation from the SRI orCG teamClear quantitative allocation from eachindividual SRI or CG analyst
How could clients improve the way they pay for your services?
Headline responses• “First, by getting votes in account reviews. Then by clearly communicating on
rankings and giving us feedback / explanation of ranking.”• “Improve the visibility of ESG research in the 'Broker Review'. If it's in the
Review that means its valued and therefore important. The result will be more resources flowing into ESG research.”
• “TRANSPARENCY, and a clear payment process, whether through broker reviews, or CSA, or RFPs, or trading…”
Link to all responses
35
VotersBrokers
ABOUT QUOTED COMPANY INVESTOR COMMUNICATIONS
36
Corporate access (asset manager view)
37
VotersAMs
44%
24%
22%
10%
How important is direct communications with companies to your SRI & CG research?
It is an important part of our research process
It is a top priority for us
It is of some interest
It is of little interest / no importance
How many companies did you (personally) meet with last year? (Asset manager analysts)
38
0-9 10-29 30-59 600
10
20
30
40
50
60
70
80
90
100 1-to-1 (meeting or phone call)
Small group meeting or webinar
Conference or large webcast
Who runs the process? (Corp Gov)
39
VotersCOs
59%
20%
14%
5%2%
Who leads on corporate governance communications for your company?
Investor relations department
Company Secretary
It is a shared responsibility (no leadnominated)
CSR / SD team
Corporate communications
Who runs the process? (SRI)
40
VotersCOs
47%
28%
23%
2%
Who leads on SRI communications for your company?
Investor relations department
CSR / SD team
It is a shared responsibility (nolead nominated)
Company Secretary
SR-IR plans
41
VotersCOs
45%
27%
20%
8%
What best describes your plan for SRI & CG communications this year?
We have a formal plan – that is shared with others in the company
We have an informal plan – that is shared within my team
We do not have a formal plan – we react to demand
We have a formal plan – that is published externally for investors & analysts to see
Time spent on SRI & CG communications
42
VotersCOs
0
5
10
15
20
25
< 3 days 3 - 10 days 11 - 30 days 31 - 60 days >60 days
How many person days did your firm spend on SRI & CG comms last year?
What did you do to communicate with SRI & CG analysts?
43
VotersCOs
0 10 20 30 40 50 60 70 80
Organised a ‘sustainability results webinar’ for SRI or CG analysts from independent research providers
Organised a ‘sustainability results webinar’ for Sell-side analysts that specialise in SRI / CG research
Organised a ‘sustainability results webinar’ for Buy-side SRI & CG analysts and PMs
Hosted an SRI / CG capital markets day
Undertook an SRI / CG roadshow to meet with SRI or CG analystsfrom independent research providers
Undertook an SRI / CG roadshow to meet with Sell-side analysts thatspecialise in SRI / CG research
Presented at an SRI / CG (broker-hosted) conference
Undertook an SRI / CG roadshow to meet with Buy-side SRI & CGanalysts and PMs
Arranged for targeted distribution of that report to SRI & CG analysts& investors
Published a separate CSR, sustainability or integrated report
Managing contact
44
VotersCOs
38%
28%
26%
5%3%
How does your company manage its SRI & CG contacts?
Actively-managed contact list
Ad hoc contact list
No formal mechanism
Structured SRI register
Full SRI investor audit
How do you shape messages for investors & analysts?
45
All comments on SRI-CONNECT here
Time division between written & direct communications?
46
VotersCOs
39%
20%
14%
12%
8%
7%
How does your time divide between written and direct communications?
Written communications withSRI & CG agency analysts
Direct communication with SRI specialist ‘buy side’ investors and analysts
Direct communications withSRI & CG agency analysts
Written communication with SRI specialist ‘buy- side’ investors and analysts
Written communications with SRI specialist ‘sell- side’ analysts
Direct communications with SRI specialist ‘sell- side’ analysts
How many SRI & CG analysts did you meet in the past year?
47
0
5
10
15
20
25
None 1-5 6-10 11-20 >20
VotersCOs
How many SRI & CG questionnaires did you answer last year?
48
0
5
10
15
20
25
30
35
40
45
2-4 5-10 >10
VotersCOs
COMPANY INVESTOR COMMUNICATIONS:
FRUSTRATIONS & IMPROVEMENTS
49
What best practices by SRI & CG research providers deserve highlighting?
All comments on SRI-CONNECT here
50
VotersCOs
How could SRI & CG research firms improve the way they interact with your company?
All comments on SRI-CONNECT here
51
VotersCOs
Improving communications(with asset managers)
52
VotersAMs
All comments on SRI-CONNECT here
Improving communications(with research providers)
53
VotersResFrm
0 50 100 150 200
Other (please specify)
Allocate time to research agencies / indices based on theirmarket influence
Publish responses to all questionnaires online
Publish their reporting schedule more openly
Host annual webinar presentations on their sustainabilityperformance & corporate governance approach
Publish ‘sustainability results’ statements
Move to integrated reporting
Publish easily identifiable contact points for SRI & CG analysts
How could companies improve their communications to you on sustainability & corporate governance issues?
COMPANY ANALYST COMMUNICATIONS: RANKINGS
& RATINGS
54
Which companies are best at identifying the material sustainability & corporate governance issues facing their business?
55
1. Unilever2. Novo Nordisk3. Intel4=. Marks and Spencer Group4=. Natura Cosmeticos6=. Hennes & Mauritz6=. Microsoft8. DSM9=. Apple9=. BHP Billiton9=. Henkel KGaA9=. L'Oreal9=. Geberit9=. Red Electrica de Espana
Full results on SRI-CONNECT here
Which companies communicate best to you?
56
VotersAMsResFrm
1. Unilever2. Novo Nordisk3. Repsol4. Unibail-Rodamco5=. Royal Dutch Shell5=. BHP Billiton7. Marks and Spencer Group8. Natura Cosmeticos9=. Philips9=. Hennes & Mauritz9=. GlaxoSmithKline
Full results on SRI-CONNECT here
Which companies would you most like to have direct contact with next year?
57
VotersAMsResFrm
1. Volkswagen2. Unilever3. Google4. Apple5. Exxon Mobil Corporation6=. Natura Cosmeticos6=. BP8=. JP Morgan Chase & Co8=. Nestle8=. Glencore
Full results on SRI-CONNECT here
ABOUT SRI & CG RESEARCH PROVIDERS: RESEARCH
PRACTICE
58
Where do sustainability or corporate governancefactors impact valuation most?
59
VotersAMsResFrm
What frustrates you most about the practices of SRI & CG research providers?
All comments on SRI-CONNECT here
60
VotersAMsAOsBrokers
Corporate access (research providers)
61
VotersResFrm
0
20
40
60
80
100
120
140
160
180
<10% 10% to 30% 30% to 50% 50% to 70% >70%
How much of your time do you spend in direct communications with companies?
Which research firm analyst best understands the challenges & opportunities facing your company?
62
VotersCOs
Full results on SRI-CONNECT here
1=. Hardik Shah (Sustainalytics)1=. Robbert Gerritsen (ISS (Institutional Shareholder Services))3=. Zoya Bragina (Vigeo)3=. Kristina Svanteson (Vigeo)3=. Josiane Fanguinovény (GES Invest)3=. Anne Meldau (Oekom Research)3=. Albert Charlier (Vigeo)3=. Daniel Sailer (MSCI ESG Research)3=. Erika Karp (Cornerstone Capital Group)10=. Alberto Serna Martin (Sustainalytics)10=. Sonja Siewerth (Sustainalytics)10=. Matthew Barg (Sustainalytics)10=. Bruce Duguid (Hermes Equity Ownership Services)10=. Carla Topino (Glass, Lewis & Co)
ABOUT SRI & CG RESEARCH PROVIDERS: CLIENT SERVICE
63
Client service – asset manager view
64
VotersAMs
66%
24%
10%
How well do SRI & CG research providers respond to investors' needs & priorities?
They seek feedback, listen effectively and respond appropriately
They ask for feedback, but do not appear to make any of the changes that we suggest
They do not seek our feedback
Communications with clients (research providers)
65
VotersResFrm
0
20
40
60
80
100
120
140
160
<10% 10% to 30% 30% to 50% 50% to 70% >70%
How much of your time is spent in direct communications with individual analysts at asset manager or asset owner
clients?
How could investors better inform providers about their SRI & CG research needs?
66
VotersResFrm
Full results on SRI-CONNECT here
How could research providers improve their service to you?
67
VotersAMs
1. More timely updates of information (12%)2. Greater coverage of small cap stocks (11%)3. Wider geographical coverage (10%)4. Stronger business-opportunity-focus analysis (9%)5. Stronger risk-focus to analysis (8%)6. More selective coverage: financially-material issues only (8%)7. Better explanation of how ratings are formed (8%)8. Coverage of asset classes other than listed equity (6%)9. Facilitate direct access to analysts (6%)10. Work in active partnership with brokers to generate research (5%)11. Wider coverage of issues – even if not financially-material (4%)12. Services for direct support of ‘engagement’ (4%)13. Focus on data only (3%)14. Accept payment via CSAs (3%)15. Focus on ratings only (2%)16. Other (1%)
ABOUT SRI & CG RESEARCH PROVIDERS: RANKINGS &
RATINGS
68
Best analyst for CG research
69
Full results on SRI-CONNECT here
1. Adam Ward (MSCI ESG Research)2. Alan Brett (MSCI ESG Research)3. Loïc Dessaint (Proxinvest)4. Sauravh Dubey (Solaron)5=. Abishek Subrahmanaya (Solaron)5=. Gustavo Pimentel (Sitawi)5=. Irina Burcea (Solaron)8=. Radhika Mehrotra (Solaron)8=. Gregory Elders (Bloomberg)10. Josiane Fanguinovény (GES Invest)
VotersAMsAOsBrokers
Best analyst for SRI research
70
Full results on SRI-CONNECT here
1=. James Magness (Carbon Disclosure Project)1=. Gustavo Pimentel (Sitawi)3. Gregory Elders (Bloomberg)4. Linda-Eling Lee (MSCI ESG Research)5. James Leaton (Carbon Tracker)6. Hazel Goedhart (Sustainalytics)7=. Tal Ullmann (Sustainalytics)7=. Andy Howard (Didas Research)9. Radhika Mehrotra (Solaron)10. Sauravh Dubey (Solaron)
VotersAMsAOsBrokers
Best firm for CG research
71
Full results on SRI-CONNECT here
1. MSCI ESG Research2. ISS (Institutional Shareholder Services)3. Sustainalytics4. Bloomberg5. Glass, Lewis & Co6. Vigeo7. Solaron8=. Hermes Equity Ownership Services8=. Proxinvest10. Asian Corporate Governance Association
VotersAMsAOsBrokers
Best firm for SRI research
72
Full results on SRI-CONNECT here
1. MSCI ESG Research2. Sustainalytics3. Carbon Disclosure Project4. Bloomberg5. Solaron6. Vigeo7. Oekom Research8. Carbon Tracker9. Trucost10. Sitawi
VotersAMsAOsBrokers
Best firm for: Climate change research
73
1. Carbon Disclosure Project2. Carbon Tracker3. MSCI ESG Research4. Trucost5. Solaron6. Sustainalytics7. CERES8. 2° Investing Initiative9. South Pole Carbon10=. Institutional Investors Group on Climate Change10=. Investor Group on Climate Change (Aus)
Full results on SRI-CONNECT here
VotersAMsAOsBrokers
Best firm for: Data
74
1. MSCI ESG Research2. Bloomberg3. Sustainalytics4. Solaron5=. Thomson Reuters (ASSET4)5=. Vigeo7=. Carbon Disclosure Project7=. EIRIS7=. Trucost10. Oekom Research11. Sitawi
Full results on SRI-CONNECT here
VotersAMsAOsBrokers
Best firm for: Emerging markets research
75
1. MSCI ESG Research
2. Solaron
3. Sustainalytics
4. Sitawi
5=. Asian Corporate Governance Association
5=. Bloomberg
5=. Oekom Research
Full results on SRI-CONNECT here
VotersAMsAOsBrokers
Best firm for: Engagement services
76
1=. GES Invest1=. MSCI ESG Research3. Hermes Equity Ownership Services4. Solaron5. Sustainalytics6=. BMO Global Asset Management6=. RobecoSAM8. As You Sow9=. Glass, Lewis & Co9=. Vigeo11=. Bloomberg11=. CERES11=. Proxinvest
Full results on SRI-CONNECT here
VotersAMsAOsBrokers
Best firm for: Fixed income research
77
1. MSCI ESG Research
2. Bloomberg
3. Oekom Research
4. Sustainalytics
5. Vigeo
6=. EthiFinance
6=. Solaron
Full results on SRI-CONNECT here
VotersAMsAOsBrokers
Best firm for: Islamic finance
78
1. MSCI ESG Research
2. Sustainalytics
3=. Bloomberg
3=. IdealRatings
5=. Interfaith Center on Corporate Responsibility
5=. Solaron
Full results on SRI-CONNECT here
VotersAMsAOsBrokers
Best firm for: News
79
1. Bloomberg
2. MSCI ESG Research
3. RepRisk AG
4. Sustainalytics
5. Solaron
6. Vigeo
7. Oekom Research
8. Climate Bonds Initiative
Full results on SRI-CONNECT here
VotersAMsAOsBrokers
Best firm for: Risk analytics
80
VotersAMsAOsBrokers
1. MSCI ESG Research
2. Sustainalytics
3. Solaron
4. RepRisk AG
5=. Maplecroft
5=. Vigeo
7=. Bloomberg
7=. Carbon Tracker
Full results on SRI-CONNECT here
Best firm for: Small Cap research
81
VotersAMsAOsBrokers
1. MSCI ESG Research
2=. Solaron
2=. Sustainalytics
4. Bloomberg
5. EthiFinance
6=. Oekom Research
6=. Vigeo
Full results on SRI-CONNECT here
Best firm for: Voting (execution of)
82
VotersAMsAOsBrokers
1. ISS (Institutional Shareholder Services)
2. MSCI ESG Research
3. Glass, Lewis & Co
4. Manifest
5. Sustainalytics
6. Proxinvest
Full results on SRI-CONNECT here
Best client relations / salesperson for corporate governance research
83
Full results on SRI-CONNECT here
VotersAMsAOsBrokers
1. Daniel Sailer (MSCI ESG Research)2. Vipul Arora (Solaron)3. Cornelia Bedford (MSCI ESG Research)4. Tal Ullmann (Sustainalytics)5. Peter Yauch (Glass, Lewis & Co)6=. Charles Pinel (Proxinvest)6=. Brian Walker (ISS (Institutional Shareholder Services))8. Howard Sherman (MSCI ESG Research)9=. Till Jung (Oekom Research)9=. Ali Saribas (MSCI ESG Research)
Best client relations / salesperson for SRI research
84
Full results on SRI-CONNECT here
VotersAMsAOsBrokers
1. Daniel Sailer (MSCI ESG Research)2. Catalina Secreteanu (Sustainalytics)3. Vipul Arora (Solaron)4. Tal Ullmann (Sustainalytics)5. Cornelia Bedford (MSCI ESG Research)6. Cecilia Barsk (Sustainalytics)7. Chris Fowle (Carbon Disclosure Project)8. Lauren Smart (Trucost)9. Julia Haake (Oekom Research)10=. Juan Carlos Calderon Castro (MSCI ESG Research)10=. Maria Lilli (MSCI ESG Research)
ABOUT SRI INDICES
85
On SRI indices
86
VotersCOs
35%
32%
22%
7%
2% 2%
What do you think of SRI indices?
We consider them to be a very important partof our SRI & CG communications activity
They could be more time-efficient; but wederive useful value from participating in theprocess
They take too long and deliver too little valueto us; but we still complete the questionnaires
We have completed the questionnaires in the past, but don’t plan to do so in the near future
We have never completed theirquestionnaires; but plan to do so in future
We have never completed their questionnaires and don’t plan to do so
Best firm for: Indices
87
VotersAMsAOsBrokers
1. MSCI ESG Research
2. Sustainalytics
3. FTSE
4. RobecoSAM
5. Standard & Poor's (Research & Ratings)
6=. Access to Medicine Foundation
6=. Bloomberg
6=. Solaron
6=. Vigeo
Full results on SRI-CONNECT here
INNOVATION & THE FUTURE
88
What have been the most positive developments in SRI & CG research in the past year?
89
Full results on SRI-CONNECT here
Most innovative research product / report
Most cited:1. CDP – Quarterly sector research series
• Including Flicking the Switch & No Room for Passengers
2. Carbon Tracker:• All work – specifically Carbon Supply Cost Curves
3. Solaron – ESG Performance TrackerAlso cited:• 2 Degrees Initiative, CERES, Coller, Cornerstone, MSCI,
Mercer, Regnan, RobecoSAM, Sustainalytics, TruValueLabs
• Link to all votes and comments
90
VotersAmsAOsBrokers
How do you expect your SRI & CG research needs to be met in future? (Asset managers)
91
VotersAMs
0%
10%
20%
30%
40%
50%
60%
70%
80%
Less No Change More
Future research needsIn-house research
Sell-side research
Data from independent providers
Ratings from independent providers
Enhanced analysis from independent providers
Research from think tanks & NGOs
How do you expect to use independent SRI & CG research in future? (Brokers)
92
52%38%
5%5%
About the same
More
Less
Not at all
VotersBrokers
What development would you most like to see in SRI or CG research in 2016? (Asset managers)
93
All comments on SRI-CONNECT here
VotersAMs
What development would you most like to see in SRI or CG research in 2016? (Brokers)
• Asset Managers to pay for service - or stop asking for ad-hoc work when they can't pay for it!
• SEC adopts standards for disclosure of material ESG factors
• Focus on climate change Scope 3 emissions. Analysis of 'Intangibles'. Reporting on Impact
• An open culture of ""Giving and Taking"" between research providers and the buy-side
• Stringent data publishing requirements for corporates• Broader integration with Bloomberg terminal
94
VotersBrokers
What development would you most like to see in SRI or CG research in 2016? (Brokers)
• To keep on going through mainstreaming of ESG• A clear adoption by buy-side of clear transparent disclosure
of SRI/CG research usage• A 'one-stop-shop' with all aggregated - publicly available -
data and recent reports.• More professional approach. More skills (and stability) on
the buy-side. More transparency on payment for research.
95
VotersBrokers
What development would you like to see in 2016? (Research providers)
96
All comments on SRI-CONNECT here
VotersResFrm
What development would you most like to see in SRI or CG research in 2016? (Companies)
All comments on SRI-CONNECT here
97
VotersCOs
CONCLUSION
98
Information with a purpose
• TODAY: Congratulations to the winners and thanks to everyone that voted
• TOMORROW: Don’t ignore the industry dynamics• The SRI & CG research industries are global, active and
varied• Be pro-active
• Companies: In your communication with SRI analysts & investors• Asset managers: By taking control of your research budget and
spending it in a way that supports your needs• Brokers: Ensure SRI & CG research leads (not follows) the wider
debate on research and commission payment• Research providers: Reach out for direct contact up and down the
value chain
99
