2. CONTENTS
EXECUTIVE SUMMARY 3
KEY FINDINGS 4
THE ROLE OF INDEPENDENT SRI & CG RESEARCH IN INTEGRATED ANALYSIS 4
QUESTIONS ASKED 6
CORPORATE GOVERNANCE RESEARCH – ORGANISATION 7
CORPORATE GOVERNANCE RESEARCH - INDIVIDUAL 8
SUSTAINABLE & RESPONSIBLE INVESTMENT RESEARCH - ORGANISATION 9
SUSTAINABLE & RESPONSIBLE INVESTMENT RESEARCH - INDIVIDUAL 11
SALES/CLIENT RELATIONS (SRI & CG) 13
RESEARCH & INNOVATION – DELIVERED IN 2011/2012 15
RESEARCH & INNOVATION – FRUSTRATIONS 17
RESEARCH & INNOVATION – WANTED FOR 2012/2013 19
ASSET MANAGERS – BEST USERS OF SRI/CG RESEARCH 23
ASSET MANAGERS – BEST COMMUNICATIONS OF SRI/CG NEEDS 24
ASSET MANAGERS – IMPROVING COMMUNICATIONS 25
QUOTED COMPANIES – BEST COMMUNICATORS 27
QUOTED COMPANIES – IMPROVEMENTS 29
EXTEL 32
SRI-CONNECT 33
IRRI Survey 2012 2
3. EXECUTIVE SUMMARY
The first Independent Research in Responsible Investment survey (IRRI
2012) was conducted in June 2012 by Thomson Reuters Extel in
partnership with www.sri-connect.com
Sustainable & Responsible Investment (SRI) and We would like to thank formally all participants for
its sister discipline, Corporate Governance (CG), their contributions to the Survey. We look forward
have proved resilient through the unfolding to working with you all again in future to support
chapters of the recent credit crisis and economic continued transparency, quality and integrity in
downturn. Far from being seen as a luxury for this part of the investment value chain.
good times, they are coming to be seen as an
antidote to the foibles and failings of ‘mainstream’
finance.
Independent research provision has always been a
cornerstone of SRI & CG practice and will, no
doubt, remain so. Furthermore, as the relevant of
these disciplines to mainstream asset allocation,
sector weighting and stock selection becomes ever
clearer, it is timely to introduce a market-
orientated process to identify innovative and
client-responsive practice in this area.
The IRRI survey invited responses from all
participants in the SRI value chain: asset
managers, sell-side research houses and
independent SRI agencies. It received 239 votes
from 139 different firms in 17 different countries.
These votes were robustly and independently
scrutinised to ensure data quality and integrity.
The IRRI survey celebrates and rewards high-
performing analysts with recognition and career
opportunity. We also hope that it will enable
managers at research providers to identify
strengths and weaknesses in their firm’s analytical
capabilities and to benchmark those against
peers. Most importantly, we hope that IRRI will
add a further incentive for high-quality, client-
responsive research and service.
IRRI Survey 2012 3
4. KEY FINDINGS
THE ROLE OF INDEPENDENT SRI & CG RESEARCH IN INTEGRATED
ANALYSIS
By Mike Tyrrell, Editor of SRI-CONNECT
It has been a fascinating and hugely encouraging This ‘race to the middle’ to produce the ‘stimulus
privilege to review the results of IRRI 2012 and to research’ that is so important to the integration
try to contextualise the role that independent SRI process presents an excellent opportunity for
& CG research can (indeed must) play in the all- independent research providers that:
important task of integrating sustainability
analysis with mainstream asset allocation, sector • Put individual analysts & their creative thinking
weighting and stock selection decisions. at the forefront of their product proposition
• Are prepared to innovate and develop business
Policy, initiatives and regulation may all be models that are more suited to high-value-
needed to support the transition towards capital added research (and operate effectively
markets that are better governed, more alongside their core subscription-based model)
economically-supportive, more environmentally- • Put clients before products – by maintaining
benign and more socially-just. But ultimately, excellent levels of service and responsiveness
capital moves when smart people challenge to client demands
consensus thinking with creative, robustly-
Releasing the wealth of talent and enthusiasm
analysed and well-communicated research.
within independent research providers was one of
Integration is achieved on an analyst-by-analyst;
the inspirational forces behind the development of
research idea-by-research idea basis.
SRI-CONNECT and we are committed to
At a macro level, the whole of SRI is one such channelling this energy to market.
challenge to the consensus thinking in financial
We support IRRI because we believe that an open,
markets over fifty years. However, this broad
transparent, market-orientated approach is
challenge now needs to be translated into
needed to chart the progress of independents and
hundreds of more targeted and specific
to reward innovation and development.
challenges. (Indeed, many analysts refer, in the
votes, to the importance of sector-specific, in- For markets to work, they need active participation
depth financially-integrated research calls.) and the free flow of money and information. We
thank all of those who are participating in these
It is easy to swallow the SRI ‘Kool Aid’ that policy,
exciting research markets; we thank those that
initiatives and regulation are the answer. It is
ensure their money moves to support their words
equally easy to assume that ‘sell-side’ analysts
and, today particularly, we thank those who
hold the keys to ‘integration’ and ‘mainstreaming’.
completed the IRRI 2012 survey. The information
They are, indeed, an absolutely critical part of this
that you have provided moves our understanding
process. However, as we see from the responses to
of this area on. You have signed up to be part of
IRRI, the independent research sector also has an
this exciting development change and we thank
important role to play in driving SRI & corporate
you sincerely for that.
governance considerations into the heart of
investment decision-making.
IRRI Survey 2012 4
5. It is clear that there is no single silver bullet to
integrating sustainability and corporate
governance factors within mainstream investment
decision-making. But the target can equally be
brought down by a hail of lead bullets. IRRI 2012
shows that we now have the ammunition. Now
take aim…
IRRI Survey 2012 5
6. QUESTIONS ASKED
IRRI 2012 asked for responses to the following COMPANIES
questions:
• Which (quoted) company is best at
CORPORATE GOVERNANCE communicating its sustainability & corporate
governance performance to you?
• Best independent corporate governance • What could companies do to improve their
research provider (organisation) communications to you on sustainability &
• Best individual analyst for corporate corporate governance matters?
governance research
SRI
• Best independent SRI research provider
(organisation):
• Best individual analyst for SRI research
SALES / CLIENT RELATIONS
• Best client relations / salesperson for SRI &
corporate governance research
RESEARCH, INNOVATION &
DEVELOPMENT
• Most innovative product / research piece
produced in 2011/12
• Most frustrating practice by SRI / corporate
governance research organisations
• What development would you most like to see
in SRI / corporate governance research in
2012?
ASSET MANAGERS
• Which asset managers make best use of SRI /
Corporate Governance research in your
opinion?
• Which asset manager is best at
communicating its research needs to SRI
research providers?
• What could asset managers do to inform SRI /
corporate governance research providers
better about their specific research needs?
IRRI Survey 2012 6
7. CORPORATE GOVERNANCE RESEARCH - ORGANISATION
BEST INDEPENDENT CORPORATE GOVERNANCE RESEARCH PROVIDER (ORGANISATION)
Pos. Firm Percentage
1 GMI 24.2
2 ISS 12.1
3 Sustainalytics 10.6
4 Proxinvest 7.1
5 MSCI ESG Research 6.0
6 PIRC 4.4
7 EIRIS 3.8
8 Glass Lewis 2.9
8 Manifest 2.9
10 Ethos 2.3
11 Boardex 2.1
12 EthiFinance 1.9
12 SolarOn 1.9
14 Oekom Research 1.7
15 Bloomberg 1.3
15 CAER 1.3
15 Inrate 1.3
15 PHITRUST 1.3
15 Vigeo 1.3
20 Asian Corporate Governance Association 1.0
20 ECGS 1.0
Named research providers
The following research providers were also named
by voters in this category:
ASSET4 (Thomson Reuters), Association of British
Insurers, Center for Political Accountability,
Corporate Governance Europe, Governance for
Owners, Groupe Investissement Responsable,
Hermes Equity Ownership Services, IW Financial,
Ownership Matters, RepRisk AG, Sustainable
Investments Institute (Si2), The Corporate Library,
Trustfinance, World Governance Indicators
IRRI Survey 2012 7
8. CORPORATE GOVERNANCE RESEARCH - INDIVIDUAL
BEST INDIVIDUAL ANALYST FOR CORPORATE GOVERNANCE RESEARCH
Pos. Analyst Percentage
1 Laurence Loubieres, Sustainalytics 9.9
2 Kimberly Gladman, GMI Ratings 7.4
3 Dayna Linley, Sustainalytics 6.6
4 Kazutaka Kuroda, EIRIS 5.0
5 Pierre-Henri Leroy, Proxinvest 4.1
6 Abel Page, EthiFinance 2.5
6 Alan Brett, Manifest 2.5
6 Alberto Bagnara, ISS (Institutional Shareholder Services) 2.5
6 Eugenia Fabon Victorino, Sustainalytics 2.5
6 Georgina Marshall, ISS (Institutional Shareholder Services) 2.5
6 Hans-Christoph Hirt, Hermes Equity Ownership Services 2.5
6 Helena Hernando, Sustainalytics 2.5
6 Irene Sosa, Sustainalytics 2.5
6 Jean Laville, Jean Laville 2.5
6 Julia Leske, Corporate Analysis: Enhanced Responsibility (CAER) 2.5
6 Linda Scott, Governance for Owners 2.5
6 Loic Dessaint, Proxinvest 2.5
6 Lucy Marcus, Marcus Ventures 2.5
6 Paul Hewitt, Manifest 2.5
6 Paul Hodgson, GMI Ratings 2.5
6 Sarah Wilson, Manifest 2.5
6 Stephane Genilloud, Inrate 2.5
6 Tessa Younger, PIRC 2.5
6 Yola Biedermann, Ethos Services 2.5
Named analysts Investissement Responsable); Sandrine Lalmant
(PIRC);
The following analysts were also named by voters
in this category:
Andrew Ninian (Association of British Insurers);
Barbara Evans (Bloomberg); Martin Lawrence
(Ownership Matters); Olivia Rapp (Proxinvest);
Rafal Budzinski (PIRC); Ric Marshall (GMI
Ratings); Robbert Gerritsen (MSCI ESG Research);
Thomas von Oehsen (ISS (Institutional
Shareholder Services)); Vipul Arora (Solaron);
Bruce Freed (Center for Political Accountability);
Charles Lee (Asian Corporate Governance
Association); Hunter Page (Regnan); Kristof Ho Tiu
(Deminor); Marie-Pier Lamarre (Groupe
IRRI Survey 2012 8
10. Named research providers
The following research providers were also named
by voters in this category:
Access to Medicines Index Foundation,
Acclimatise, Alcyone, ASN Research Netherlands,
Bank Sarasin, Boardex, Ceres, Earth Security
Initiative, Ecodes, Ethos, Feri, FTSE, GES Invest,
Glass Lewis, Green Eye, Greenpeace, Hermes
Equity Ownership Services, ICCR, IW Financial,
Needham, Novethic, OFG Recherche, Platform,
Proxy Impact, Suedwind e.V., Sustainable
Investments Institute (Si2), Triodos Bank,
Washington Analysis, World Governance
Indicators, World Resources Institute, Worldwise
Investor
IRRI Survey 2012 10
11. SUSTAINABLE AND RESPONSIBLE INVESTMENT RESEARCH -
INDIVIDUAL
BEST INDIVIDUAL ANALYST FOR SRI RESEARCH
Pos. Analyst Percentage
1 Dayna Linley, Sustainalytics 23.9
2 Irene Sosa, Sustainalytics 11.2
3 Laurence Loubieres, Sustainalytics 11.2
4 Kazutaka Kuroda, EIRIS 5.6
5 Abel Page, EthiFinance 1.8
5 Jean-Florent Helfre, Sustainalytics 1.8
5 Julia Leske, Corporate Analysis: Enhanced Responsibility (CAER) 1.8
5 Laura Nishikawa, MSCI ESG Research 1.8
5 Ric Marshall, GMI Ratings 1.8
10 Sun Xi, Sustainalytics 1.5
11 Vipul Arora, Solaron 1.2
12 Andrew Brengle, MSCI ESG Research 0.9
12 Andrew Gaynor, EIRIS 0.9
12 Andrew Logan, CERES 0.9
12 Arne Klug, Sustainalytics 0.9
12 Ben Spruzen, SIRIS (Sustainable Investment Research Institute) 0.9
12 Cornelia Maul, MSCI ESG Research 0.9
12 Elia Tarrega, Sustainalytics 0.9
12 Emmanuel de la Ville, EthiFinance 0.9
12 Esther Hougee, Sustainalytics 0.9
12 Friedel Huetz-Adams, Suedwind-Institut 0.9
12 Gaëtan Mortier, MSCI ESG Research 0.9
12 Hannah Watson, EIRIS 0.9
12 Hideki Suzuki, Bloomberg 0.9
12 Jaideep Singh Panwar, Responsible Research 0.9
12 James Leaton, Carbon Tracker 0.9
12 Jeremy Grantham, GMO 0.9
12 Nikki Gwilliam, Vigeo (Rating) 0.9
12 Paul Hodgson, GMI Ratings 0.9
12 Philippe Spicher, Inrate 0.9
12 Susanne Marttila, oekom research AG 0.9
12 Tessa Younger, PIRC 0.9
12 Tony Czarnecki, Sustensis 0.9
12 Vanessa Ardenti, Inrate 0.9
12 Zach Larkin, Stephens 0.9
IRRI Survey 2012 11
12. Named analysts
The following analysts were also named by voters
in this category:
Amandine Marquès (MSCI ESG Research ), Ahmar
Zaman (Piper Jaffray & Co), Akiko Shimizu (SIRIS
(Sustainable Investment Research Institute)),
Alessandro Bracaglia (EIRIS), Alison George
(Regnan), Barbara Evans (Bloomberg), Daniela
Perito (INrate), Dietrich Wild (oekom research AG),
Ellen Mayer (oekom research AG), Eugenia Fabon
Victorino (Responsible Research), Helena
Hernando (Sustainalytics), Helena Philipova
(ASSET4 (Thomson Reuters)), Ian Thomson (On
Common Ground), Jenny Blinch (Responsible
Research), Jowoon Park (Korea CSR Research
Service), Julius Hansen (IMUG), Libby Edgerly
(MSCI ESG Research ), Marc Fox (Carbon
Disclosure Project), Markus Gruenewald (IMUG),
Matthew Barg (Sustainalytics), Meriem Saber
(Vigeo (Rating)), Michael Lew (Needham & Co),
Naomi Selby (EIRIS), Noushin Khushrushahi
(SHARE: Shareholder Association for Research
and Education), Oliver Jackson (EIRIS), Ornella Di
Iorio (Vigeo (Rating)), Samuel Block (MSCI ESG
Research ), Sébastien Marquet (EthiFinance),
Stephane Genilloud (INrate), Susan Williams
(Sustainable Investments Institute (Si2)), Tamara
Hardegger (Thomson Reuters), Tim Vandenberg
(Washington Analysis), Typhaine de Borne (EIRIS),
Yulia Reuter (MSCI ESG Research )
IRRI Survey 2012 12
13. SALES / CLIENT RELATIONS (SRI & CG)
BEST CLIENT RELATIONS / SALESPERSON FOR SRI & CORPORATE GOVERNANCE RESEARCH
Pos. Analyst Percentage
1 Darragh Gallant, Sustainalytics 11.1
2 Diederik Timmer, Sustainalytics 8.1
3 Antonio Celeste, Sustainalytics 7.8
4 Lisa Hayles, EIRIS 4.2
5 Howard Sherman, GMI Ratings 3.3
6 Vipul Arora, Solaron 3.0
7 Tal Ullmann, Sustainalytics 2.7
8 Florence Bihour-Frezal, Vigeo (Rating) 2.4
8 Julia Haake, Oekom Research 2.4
10 Eva Meyer, MSCI ESG Research 2.1
11 Andrea van Dijk, Sustainalytics 1.8
11 Duncan Paterson, Corporate Analysis: Enhanced Responsibility (CAER) 1.8
11 Irene Sosa, Sustainalytics 1.8
11 Jean-Florent Helfre, Sustainalytics 1.8
11 Martijn van Schaik, Sustainalytics 1.8
11 Philippe Spicher, Inrate 1.8
17 Emmanuel de la Ville, Ethifinance 1.5
17 Mairead Hancock, EIRIS 1.5
17 Mark Bytheway, SIRIS 1.5
17 Naomi English, MSCI ESG Research 1.5
17 Patrick Blake, MSCI ESG Research 1.5
17 Paul Hewitt, Manifest 1.5
17 Sebastian Brinkman, MSCI ESG Research 1.5
24 Laurence Loubieres, Sustainalytics 1.2
24 Nelle Coady, MSCI ESG Research 1.2
24 Randy O'Neil, MSCI ESG Research 1.2
Named sales/client relations people Anderson (GMI Ratings), Ives Hup (Petercam),
Jillis Herpers (MSCI ESG Research), Jorgen Mork
The following sales/client relations people were (MSCI ESG Research), Kazutaka Kuroda (EIRIS),
also named by voters in this category: Kimberly Gladman (GMI Ratings), Lindsay Smart
(Vigeo (Rating)), Marcus Relthford (ISS
Abel Page (EthiFinance), Alan MacDougall (PIRC),
(Institutional Shareholder Services)), Margaret
Andre Chanavat (ASSET4 (Thomson Reuters)),
Apsey (ISS (Institutional Shareholder Services)),
Barbara Evans (Bloomberg), Brian Grzymski (GMI
Martina Macpherson (MSCI ESG Research),
Ratings), Brian Walker (ISS (Institutional
Matthias Boenning (Oekom Research), Michelle
Shareholder Services)), Cedric Lagrange (MSCI
Friedman (MSCI ESG Research), Nancy Diard
ESG Research), Claire Veuthey (Responsible
(MSCI ESG Research), Noel Friedman (MSCI ESG
Research), Dayna Linley (Sustainalytics), Dean
Research), Paula Glick (SIRI), Peter Chapman
Paatsch (Ownership Matters), Drew Buckley (GMI
(Shareholder Association for Research and
Ratings), Elia Tarrega (Sustainalytics), Gavin
IRRI Survey 2012 13
14. Education (SHARE)), Pierre-Henri Leroy
(Proxinvest), Rick Bennett (GMI Ratings), Rick
Melcher (GMI Ratings), Robert Klijn (Fair Impact),
Sarah Smith (Sustainalytics), Sarah Wilson
(Manifest), Silke Riedel (IMUG), Stefanie Phelan
(SIRIS (Sustainable Investment Research
Institute)), Stefano Gilardi (INrate), Terence
Berkleef (Sustainalytics), Till Jung (Oekom
Research), Tyrene Peterman (MSCI ESG
Research), Ulrika Hasselgren (Ethix)
IRRI Survey 2012 14
15. RESEARCH AND INNOVATION – DELIVERED IN 2011/2012
MOST INNOVATIVE PRODUCT / RESEARCH PIECE PRODUCED IN 2011/2012
The following organisations/pieces received • Solaron (5 votes) – for coverage of
multiple votes for the best research and emerging markets and use of stakeholder
innovation delivered in 2011/12: interviews
• GMI (4 votes) – 3 for GMI Analyst; 1 for
• Sustainalytics (9 votes) – 3 for Fracking under reports on compensation & diversity
Pressure; 2 for Insurance and Climate
• Responsible Research (3 votes) – all for
Change; 1 each for industry reports,
the Future of Fish in Asia
controversies product and country risk
• Si2 & IRRC (2 votes) – both for Investor
manager
Guide to Hydraulic Fracturing
• MSCI (6 votes) – for webinars, sovereign debt
• EIRIS (2 votes) – 1 for sovereign debt
coverage and sector reports
research & 1 for sustainability ratings
All mentions
Firm Research/Product Votes
Bloomberg ESG Model 1
Carbon Tracker Unburnable Carbon 1
Center for Corporate Accountability Political Spending Disclosure Index 1
EIRIS Sovereign Debt 1
EIRIS Sustainability Ratings 1
Environmental Investment Organisation Carbon Rankings 1
Ethifinance Global Risk Rating 1
FTSE4Good ESG Ratings 1
GMI GMI Analyst 3
GMI Reports on compensation & board diversity 1
Annual Proxy Voting Book; Social Sustainability Resource
ICCR 1
Guide; Guidelines on Investment in Commodities
ICGN Model Mandate 1
Inrate Focus on empirical evidence of ESG data 1
KPMG Megaforces 1
Maplecroft Country reports 1
McKinsey Resource Efficiency Report 1
MSCI Industry reports 2
MSCI Sovereign debt coverage 2
MSCI Webinars 1
MSCI IVA reports 1
Pictet How to survive the next crisis: Is SRI the silver bullet? 1
Responsible Research The Future of Fish in Asia 3
Si2 & IRRC Investor Guide to Hydraulic Fracturing 2
Solaron Emerging Markets coverage & use of stakeholder i’vws 5
Suedwind Institut Im Boden der Tatsachen 1
IRRI Survey 2012 15
16. Firm Research/Product Votes
Sustainalytics Industry Research Reports 1
Sustainalytics Country Risk Manager 1
Sustainalytics Controversies Product 1
Sustainalytics Fracking Under Pressure 1
Sustainalytics Insurance and Climate Change 2
Sustainalytics Free, Prior and Informed Consent in the Mining Industry 1
Sustensis Long-term value tracker 1
Transparency International Extractive Industry Report 1
Trucost Why env externalities matter to inst’l investors 1
Vigeo Farm Animal Welfare 1
WWF Investor Engagement Programme 1
IRRI Survey 2012 16
17. RESEARCH AND INNOVATION - FRUSTRATIONS
MOST FRUSTRATING PRACTICE BY SRI / CORPORATE GOVERNANCE RESEARCH ORGANISATIONS
Responses to this question were articulate and ‘I'm tired of tick-box research. There should be more
comprehensive. We have therefore taken the view standardisation. I appreciate Sustainalytics' sector
that reproducing them in full is more valuable reports and issues surveys. Also Solaron research
than attempting to summarise them. on specific topics of emerging markets listed stocks
- which reveals hidden bad practices.’
‘Outdated research that shows a snapshot of a time
that has passed (e.g. indicating the board is all ‘Cheap services enabling clients to 'box tick'.’
male when, in fact, a woman has recently been
‘Time lapse in communication - especially at AGM
appointed.) I always check the RNS feeds to double
time.’
check the status of the board.’
‘Box-ticking practice that does not take into
‘Insufficient engagement with their own
consideration particuliarities of the company,
stakeholders other than customers.’
including its risk environment.’
‘A box-ticking approach that fails, for example, to
‘Shadowing one another's research.’
look at the underlying impacts of a practice (or lack
thereof) on the business.’
‘Lack of coverage emerging markets.’
‘Removal of previously covered companies from
‘Incorrect data or, worse, data that is displayed as
MSCI's research. They remove previously covered
fact without evidence behind it.’
companies if they are no longer on the MSCI World
Index. It makes it impossible to have an historical
‘Questionnaires.’
databank of information on a given company. It's
inscrutable.’
‘Lag in data updates.’
‘Claiming that large corporates are sustainable.
‘Lack of consistency when grouping sub-categories
They are not. Small parts of their businesses may
of research.’
be. SRI ratings need to be seen in context of the real
impacts of big corporates.’ ‘Answering a specific & concrete critiques of
individual company ratings by re-stating their
‘I still do not see well-researched methodologies for
rating policies.’
tying ESG issues to stock returns.’
‘Not mainstreaming their research. If you write a
‘There is little value in pointing out something that
niche piece, it will stay a niche piece.’
has gone wrong after it has happened as evidence
that ESG is material.’ ‘Not respecting timeliness.’
‘Three weaknesses: Box-ticking approach; lack of ‘Not providing the date of most recent update. 'Me
reactivity in terms of research; lack of contacts with too' research rather than moving to another topic.’
analysts (e.g. through presentations to explain
methodology). Some of these are evolving positively ‘Corporate governance indicators could be more
at some providers.’ standardized. While specific answer categories and
ratings are up to the individual
‘Out-of-date SRI research.’ analyst/organization, it would be nice to have
consistency in what is covered.’
‘Delays of several days to time-driven research
questions.’ ‘Providing loads of data with no context.’
‘Not dealing in real costs.’
IRRI Survey 2012 17
18. ‘Lack of professionalism in the average analyst.’ ‘Ratings. Formulaic repetition of sector data for
companies without highlighting deviations &
‘A lot of the reports point out shortcomings differences for specific companies.’
compared to the benchmark of reporting that larger
companies with more resources provide to the ‘A lack of comprehensive governance data and
market. Plus some of the indicators are not largely analysis and a lack of data and analysis of positive
material.’ ESG indicators and ESG opportunities.’
‘Lack of available Asian governance research.’ ‘Vague links to financial impacts and relevance to
mainstream application.’
‘Their separation from the rest of the company's
research. I wish it was more embedded.’ ‘This is changing but some research organisations
are just data providers instead of having a
‘Limited access to analysts.’ fundamental understanding of material ESG issues
in sectors.’
‘Lack of analytical research or real value adding
research which is good enough quality to jolt a ‘All products and data are not on the same
financial analyst's interest.’ platform.’
‘Not taking steps--when they are relatively minor--
to provide ESG coverage for companies included in
multiple indices that your firm offers.’
‘Many ESG research templates are still not
sufficiently sector-specific. SRI research
organisations still need to improve the sector
expertise of their analysts (esp. that of more junior
staff who write the bulk of company research).’
‘Filling out surveys.’
‘Vigeo analysis.’
‘American organizations speaking on Canadian oil
sands issues without necessarily understanding the
issues. Inconsistency of analysis and
recommendations of Proxy advisors.’
‘Sending questionnaires.’
‘Influence of Corporate Governance ratings
agencies.’
‘To rate companies without checking all
information.’
‘Lost connection to financial impacts.’
‘Lack of time given to fully research a company.’
‘Box-ticking practices; a focus on what companies
say instead of what they actually do; analysis
relative to peer group best practices instead of
relative to an absolute sustainability reference
point.’
IRRI Survey 2012 18
19. RESEARCH AND INNOVATION – WANTED FOR 2012/2013
WHAT DEVELOPMENT WOULD YOU MOST LIKE TO SEE IN SRI / CORPORATE GOVERNANCE RESEARCH
IN 2012?
Responses to this question were articulate and companies outside of the US and Europe. More
comprehensive. We have therefore taken the view evaluation and analysis, less raw data.’
that reproducing them in full is more valuable
‘That it is taken up by more mainstream asset
than attempting to summarise them.
managers.’
‘More focus on marine resources, animal welfare ‘From an asset manager's perspective, brokers are
and biodiversity.’ extremely valuable because they can be reached
easily and know their topic well. We do not have the
‘More training and professional qualifications same ‘access’ to SRI or CG research analysts so
designed for the sector.’ would be good for them to try to develop direct one-
on-one relationships with asset managers.’
‘Anything that encourages increased shareholder
activism.’ ‘Greater distinction and differentiation between
exclusionary SRI research and risk-based ESG
‘More research into corporate bonds issued by analysis.’
private companies & expansion of ESG research in
emerging markets.’ ‘That ESG firms move to create the first investment
fund ESG rating, since many SRI funds are now in
‘ESG performance for companies that shows the market without a clear differentiation, distorting
performance on sector-specific KPIs over the full life heavily the SRI market.’
of company coverage. This would be a great way to
measure progress.’ ‘Greater uptake of quality ESG research by asset
managers.’
‘SRI should become more predictive in nature and
give signals that enable investors to take ‘More on sovereign debt and how to incorporate this
buy/hold/sell calls. There should be a more frequent into investment decisions. Also information on how
update by companies in terms of their ongoing ESG to rank countries on different topics (e.g. human
efforts, (similar to quarterly results).’ rights etc.).’
‘Clearer communication on goals and progress. ‘For ESG research providers to be seen as core,
Also, more transparency, more knowledge building crucial providers and not a 'nice-to-have.'
to take the ESG issues to the next level.’
‘Research companies to include interviews with
‘More comprehensive ESG research on emerging companies on their research; research companies
market companies.’ redressing their bias against small and midcap
(brought about by smaller companies' lack of
‘Use of risk/opp analysis beyond ESG. For example formal reporting).’
by looking at how to measure other intangibles like
corporate culture. Geographic risk mapping to ‘More research into the benefits of good
assess exposure to risks in countries of operation.’ management of ESG impacts on investor value.’
‘(1) True measurement of factual sustainability & (2) ‘Standardization.’
More quality - less quantity.’
‘Stronger linkages to core business drivers within
‘ESG scoring communication.’ industries, and broader research to support fixed
income and alternative investments.’
‘More research on smaller companies. Too much
focus is given to the large caps. More research on
IRRI Survey 2012 19
20. ‘Increased disclosure by companies would allow 'absolute ESG rating'. It is not about trying to fill
research providers to conduct more relevant every datapoint.’
comparisons. Increased disclosure around water
and biodiversity specifically.’ ‘Challenging the assumptions underlying
mainstream research to shift it to what a
‘Ergonomy of the databases.’ sustainable world means for future value, rather
than just assuming historical performance will
‘Risk reporting by theme.’ repeat itself.’
‘Genuine willingness from asset managers to invest ‘Standardisation of reporting to better benchmark
in this area.’ firms.’
‘Standardized reporting based on EU Commission ‘Certification of CSR data.’
recommendations. Comparability of the
information.’ ‘Quantification in terms of costs/gains, if possible,
of CSR impacts.’
‘Integration of CSR risks into the analysis.’
‘More companies covered by SRI research.’
‘More performance data.’
‘More access to relevant ESG raw databases.’
‘More trend indicators of ESG rating and
performance.’ ‘Analysis of the cost to companies from lack of
attention to social issues. While the business case is
‘Further effort on delivering verified and comparable clear, I've not seen much on the costs of inadequate
SRI data about companies.’ human rights due diligence. Examples of this by
sector / industry would be helpful.’
‘More structuring of qualitative information on the
basis of GRI reporting standards.’ ‘More corporate governance metrics.’
‘More sophisticated and honest ESG integration.’ ‘Better quality and more research coverage of Asian
companies, especially smaller listed Asian
‘A transition towards ESG beta, and collective companies.’
investment strategies regarding inclusive green
growth.’ ‘Stronger focus on materiality - when and how ESG
issues are material.’
‘More research on indigenous relations, corruption,
risks and opportunities related to water scarcity.’ ‘Thematic reports that promote engagement on
sensitive environmental and social issues.’
‘Addressing the ethical implications of investing in
raw materials. This is relevant for PRI, Global ‘Wider attention to shareholder resolutions being
Compact, and covers the entire mainstream filed throughout the world.’
investment scene.’
‘Energy and water nexus; diversity at board / senior
‘Integration into mainstream reporting. Or is that management level; conditions for next green
too optimistic? Perhaps showing the materiality of agricultural revolution.’
SRI: the financial implications of supposedly 'non-
financial' issues.’ ‘I think it would greatly benefit the field if all players
(users and providers) make a clearer distinction
‘More webinars that pair research firms with NGOs between 'values'-oriented research (exclusionary,
and asset managers to discuss emerging issues norms-based) and financially-material ESG factors.
collaboratively.’ Mixing the two confuses the aims of both.’
‘The understanding that we are moving away from ‘For asset managers and asset owners to provide
negative screening & exclusion still often being greater public transparency on their understanding
presented as ESG integration. An increased of and adoption practices of ESG within their
understanding that there is no such thing as an investments. For their commitment to be spoken
IRRI Survey 2012 20
21. about with greater conviction, outside of the ‘Concrete integration of ESG across AUM and asset
immediate SRI community.’ classes - which requires buy-in from senior
management.’
‘Asset owners taking their responsibilities under the
Stewardship code very seriously and reporting ‘Increased dialog between SRI Research Providers
annually on their progress including some trend and Asset managers.’
analysis.’
‘Regulation of proxy advisor services.’
‘I am afraid that we may lose some content as non-
SRI firms begin to ‘integrate’ ESG research into the ‘Is impact investing detracting from SRI growth?’
investment decisions. Hope research still is catered
to deep-diving, truly integrated institutions.’ ‘Clarifying the SRI versus ESG spaces: there is room
for both and they pursue different goals but this has
‘Fixed Income research; materiality of different SRI / not been clearly set yet. Should be a priority for all
Governance issues.’ players and would help serving the needs of the
respective players.’
‘Integration of an ‘economic’ sustainability
dimension.’ ‘More commitment of 'traditional' broker/asset
managers. New entrants / products.’
‘Embedding sustainability within annual report,
including the use of natural capital and likely costs. ‘More info about the effects of global warming and
More interconnection between fund managers and climate change.’
SRI analysts.’
‘Further integration of financial and non-financial
‘The aspect of integrity, corporate culture, best analysis. Show profitable business cases initiated
measured via identification of breaches and how by non-financial issues.’
this translates into higher risk premium in case of
poor crisis management and measures.’ ‘Mainstream adoption.’
‘A continued movement toward integration of ESG ‘Effective use of research for informed decision
research into fundamental research.’ making and not just compliance.’
‘Clear (but limited) ‘fail’ list for companies whose ‘Further integration of sophisticated sustainability
governance performance falls FAR below strategy and performance into investor
needs/expectations.’ communications (roadshows, annual reports etc.).’
‘ESG analysis for alternative asset classes.’ ‘Political risk analysis, issues related to business
ethics, energy efficiency/reduction strategies, green
‘More in-depth attention to the intersection of building norms, information on access to finance
technology and civil liberties.’ (microfinance, microcredit, zero savings accounts,
micro loans, etc), impact investing etc.’
‘More analysis / elements on executive pay.’
‘New product in country sustainability.’
‘More sector-specific insights.’
‘Development of engagement activity.’
‘I would like to see service providers have more
analysts with industry experience (e.g. a banking ‘Innovative research approaches.’
analyst who had actually worked in banking, or an
oil analyst or worked for an energy company). We ‘Further movement away from tick-box approach;
primarily rely on our own buy-side analysts because nuanced understanding of different ways public
their experience.’ companies can promote corporate governance /
ESG performance etc.’
‘Two separate scoring systems, one based on
disclosure and one based on performance with Y-o- ‘Contextualising of ESG information within an
Y graphs.’ investment context; fewer errors; less reliance on
formulae and ratings.’
IRRI Survey 2012 21
22. ‘A service for experienced analysts rather than those
needing starting points and initial guidance.’
‘Inclusion of positive indicators, which would enable
the users to capture ESG opportunities better.’
‘More governance research and better financial
application.’
‘Commonality over acronyms. Drop SRI and use the
term ESG.’
‘Focus on what really matters for a company, where
does a company have the biggest impact, where are
its biggest risks and opportunities.’
‘More legitimacy and increasing integration with
financial data.’
‘Wider company coverage in Emerging Markets.’
‘Real integrated web-based platform for all
products: more features, better design, user-
friendly.’
‘Data should be updated on an ongoing basis as
soon as data change (ex: change in management,
new sustainability information.’
IRRI Survey 2012 22
23. ASSET MANAGERS – BEST USERS OF SRI/CG RESEARCH
WHICH ASSET MANAGERS MAKE BEST USE OF SRI / CORPORATE GOVERNANCE RESEARCH IN YOUR
OPINION?
Pos. Firm Percentage
1 Co-operative Asset Management 9.9
2 Sparinvest AM 7.7
3 Calvert Investments 4.8
4 Amundi 4.1
4 Bank Sarasin 4.1
6 F&C Asset Management 3.3
7 Axa IM 3.1
8 Sustainable Asset Management 2.9
9 Allianz Global Investors 2.7
10 Nordea Investment Management 2.5
11 BNP Paribas Investment Partners 2.1
12 Aviva Investors 1.9
12 Natixis AM 1.9
14 DWS/DB Advisors 1.7
14 Norges Bank Investment Management 1.7
16 Robeco 1.4
Named asset managers Services, MSCI ESG Research, NEI Investments,
Newton IM, Nikko Asset Management, Osmosis,
The following asset managers were also named by Paradice, PAX World, Perpetual, PGGM, Philips,
voters in this category: Phitrust, Pictet Asset Management, Portfolio 21,
Rockefeller Financial, Sampension, Schroders,
Australian Ethical Investment, Acadian, Advanced
SNS Asset Management, Solaris, Standard Life,
Investment Partners (AIP), AGI, Aperio, APG,
Strorebrand, Sustainable Capital, Sustainalytics,
Auriel Equities, Ausbil, Baillie Gifford, BAWAG
SWIP, Swisscanto, Sycomore, Threadneedle, TIAA-
P.S.K. Invest, Blackrock, Boston Common Asset
CREF, Trillium Asset Management, Triodos
Management, BT Investment Management, Caisse
Investment Management, UBS Asset
de dépôt, Calpers, CCR AM, Clearbridge Advisors,
Management, Union, USS, Vontobel AM, Walden.
Colonial First State Global Asset Management,
Dexia Asset Management, Ecofi Investissements,
Equigest, ERAFP, Ethiea Gestion, Financière de
Champlain , Financière de l'Echiquier, Generation
Investment Management, Goldman Sachs Asset
Management, Groupama AM, Hermes, HSBC
Asset Management, Hunter Hall, Industry Funds
Management, ING Bank, Invesco, Investec Asset
Management, Jantz-Morgan, JP Morgan AM,
Kempen Capital Managers, La Financière
Responsable, Lazard Asset Management, Legg
Mason Investment Counsel, Macif Gestion, MN
IRRI Survey 2012 23
24. ASSET MANAGERS – BEST COMMUNICATORS OF SRI/CG NEEDS
WHICH ASSET MANAGER IS BEST AT COMMUNICATING ITS RESEARCH NEEDS TO SRI RESEARCH
PROVIDERS?
Pos. Firm Percentage
1 Co-operative Asset Management 9.8
2 Calvert Investments 8.4
3 Sparinvest AM 5.3
4 Amundi 4.4
5 Axa IM 3.6
5 Bank Sarasin 3.6
5 CCR AM 3.6
8 Robeco 3.1
8 Sustainable Asset Management 3.1
10 Investec Asset Management 2.7
11 Aviva Investors 2.2
11 DWS 2.2
11 La Financière Responsable 2.2
14 Allianz Global Investors 1.8
14 Calpers 1.8
14 Rockefeller Financial 1.8
Named asset managers Investment Management, UBS Asset
Management, Vinis (VBV Group), Vontobel AM,
The following asset managers were also named by Walden.
voters in this category:
APG, ASN Bank, Auriel Equities, Australian Ethical
Investment, BNP Paribas Investment Partners,
British Columbia Investment Management
Company, BT Investment Management, carpers,
Colonial First State Global Asset Management,
Ecofi Investissements, Equigest, ERAFP, F&C
Asset Management, Generation Investment
Management, GLG Partners, Groupama AM,
Industry Funds Management, Ircantec, Kempen
Capital Managers, Legg Mason Investment
Counsel, Nordea Investment Management,
Norges Bank Investment Management, PAX
World, Perpetual, Pictet Asset Management,
Portfolio 21, RBC Wealth Management, Royal
London Asset Management, SNS Asset
Management, Standard Life, Sustainalytics,
Swisscanto, Threadneedle, TIAA-CREF, Triodos
IRRI Survey 2012 24
25. ASSET MANAGERS – IMPROVING COMMUNICATIONS
WHAT COULD ASSET MANAGERS DO TO INFORM SRI / CORPORATE GOVERNANCE RESEARCH
PROVIDERS BETTER ABOUT THEIR SPECIFIC RESEARCH NEEDS?
Responses to this question tended to be multiple ‘Better communication with analysts. Particularly
variations on the theme of: “Tell us more about about clients needs and any company engagement
what you need”; “Tell us more about your research that they have had.’
processes”; “Tell us more about how you and your
portfolio managers use the information that we ‘Explain clearly how they want to integrate ESG.
provide”. We’ve selected a few responses that we There is still a lot of knowledge lacking at asset
think are most clearly articulated and a couple of managers that are talking about integration while
less common but interesting ideas: in reality they are being old style SRI investors. Be
clearer where and who you are and what you are
‘Meet with them, take them through a typical day ready to achieve.’
and how the research is used, feedback as and
when comments come to light, have higher ‘Put fundamentals / mainstream analysts in touch
expectations, commission research.’ with SRI analysts and research providers, provide
additional information on how they are using the
‘Clearly define their view of 'materiality' and what is research in their processes, be proactive at
material to them - with evidence where possible.’ beginning discussions on specific themes of
interest.’
‘Be more specific about how the SRI teams work
with the portfolio managers, and to what extent the ‘It is useful to know the varied uses and users within
PMs value and integrate SRI inputs.’ their organization of ESG research. I think a more
interactive, collaborative approach will help research
‘Workshops between users of research and research providers better tailor the offering -- and prioritize
providers would be helpful - to strengthen feedback coverage and functionalities.’
and to identify coherent response to common
needs.’ ‘Allow the provider to spend more time with the
investment teams to understand the systems and
‘Take more time to explain what they do exactly processes the research has to fit within, including
including what has worked with previous research the culture, physical location of teams, and how
suppliers, what has not worked, what their information will be shared.’
requirements are in terms of reporting to clients etc.’
‘Prepare simple, clear RFP documents which include
‘Be willing to pay for it.’ an overview of the investors beliefs concerning the
links between sustainability factors and investment
‘Communicate needs to all the providers.’
returns.’
‘Work more closely with research providers on
‘Pay properly!’
implementing ESG strategies into their models, and
include the research providers more in policy and ‘More face-to-face meetings. More check-in queries
product development.’ by the research providers on the asset managers
impression of the research (overall) or specific piece.
‘Participate in surveys.’
More responsiveness and outreach by service
‘Work out what they are first! Asset managers often providers.’
feel they should ask for stuff they don't necessarily
want.’
IRRI Survey 2012 25
26. ‘Proactively communicate their needs in writing.
Share information on their process and users, and
specific examples of what has been helpful/not
helpful.’
‘Have more informal conversations during industry
conferences.’
‘We often question the AMs on their needs during
what we call ""consultation process"" and rarely get
a clear responses as everything seems to be a
priority to them. So getting more clarity on what
should be prioritized would really help us in better
meeting their needs.’
‘ESG teams or co-ordinators could explain how the
portfolio managers use ESG data in daily
investment decision-making.’
‘Pick up the phone!’
‘Clarity in terms of their objective. Describe clearly
where they wouldn't want to invest and in what
areas they are open to new information or trends.’
‘Communicate end-client requirements;
Communicate the type of funds research is being
applied to; Provide feedback on equities research.’
‘Co-sponsor the development of research product
that they would use (e.g. specify, pilot, pre-commit)
rather than forcing research providers to take stabs
in the dark.’
‘Continue to meet with research providers to explain
your needs and review their offerings - even if you
have never used their services.’
‘Give feedback on existing products; propose new
features / products to research providers; establish
a partnership relationship with research providers -
better than a commercial relationship.’
IRRI Survey 2012 26
27. QUOTED COMPANIES – BEST COMMUNICATIONS
WHICH (QUOTED) COMPANY IS BEST AT COMMUNICATING ITS SUSTAINABILITY & CORPORATE
GOVERNANCE PERFORMANCE TO YOU?
Pos. Firm Percentage
1 Unilever 4.8
2 Royal Dutch Shell 3.9
3 Intel 2.6
3 Novo Nordisk 2.6
5 Marks & Spencer 2.4
6 BMW 2.2
6 Danone 2.2
6 L'Oreal 2.2
9 BP 1.7
9 Nestle 1.7
9 Philips 1.7
12 Dell 1.5
12 STMicroelectronics 1.5
14 AGL Energy Ltd 1.3
14 AkzoNobel 1.3
14 Bayer 1.3
14 Fiat Group 1.3
14 GSK 1.3
14 Intesa Sanpaolo 1.3
14 Microsoft 1.3
14 MSCI 1.3
14 Pirelli 1.3
14 Renault 1.3
24 Air Liquide 1.1
24 Bombardier 1.1
24 BT Group 1.1
24 DSM 1.1
24 EDP 1.1
24 Generali 1.1
24 Henkel 1.1
24 PepsiCo 1.1
24 RWE 1.1
IRRI Survey 2012 27
28. Named companies
The following companies were also named by
voters in this category as being good
communicators:
Adidas, Aggreko, Allianz, American Water Works
Co, Anglo American, AngloGold Ashanti, Apple,
AstraZeneca, Baker Hughes, Bank of America,
BASF, BBVA, BHP Billiton, BIC, BNP Paribas,
Campbell's Soup Company, Capgemini, Casino,
China Shenhua, Citigroup, CN Railway, Coca-Cola,
Coca-Cola Amatil, Deutsche Bank, Deutsche
Boerse, Diageo, Dow, DuPont, Enquest, Essilor,
Exxon, Fortum OYJ, GDF SUEZ, Geberit AG,
Gecina, Gildan Activewear, Goldman Sachs, GPT
Group, Groupe Steria, H&M, Hammerson ,
Heineken, Hewlett-Packard, Holcim, Holmen,
iberdrola, IBM, Imerys SA, Insurance Australia
Group , INTC, Kingfisher , Lafarge, McDonald's
Corp, Medtronic, Michelin, Millicom, MunichRe,
Nike Inc, Origin Energy, Outokumpu, Petrobras,
PPR, Range Resources, RBS, Repsol, Rhodia, Rio
Tinto, Roche, Ruukki, Sanofi, SAP, SCA, Schneider
Electric, SEB, Severn Trent, Siemens, Smith &
Nephew, Societe Generale, Sonova, Standard
Chartered, Staples, Stockland, Stora Enso,
Storebrand, Suez Environnement, Suncor, Swire
Pacific, Symrise, Teck Resources, Telecity, The
Gap, Toronto Dominion Bank, Tullow Oil, Umicore,
UniCredit, Vodafone, Westpac Bank
IRRI Survey 2012 28
29. QUOTED COMPANIES – IMPROVEMENTS
WHAT COULD COMPANIES DO TO IMPROVE THEIR COMMUNICATIONS TO YOU ON SUSTAINABILITY &
CORPORATE GOVERNANCE MATTERS?
Responses to this question were articulate and ‘Detailed carbon footprint, dialogue with their
comprehensive. We have therefore taken the view stakeholders, responsiveness to allegations and
that reproducing them in full is more valuable sanctions.’
than attempting to summarise them.
‘Standardized integrated reporting would be
‘Would prefer to see downloadable beneficial. Most American companies do well with
CSR/Sustainability reports rather than interactive reporting corporate governance matters, but do not
online versions without search facilities.’ do well reporting on sustainability issues (no
integrated with 10Ks or stand alone CSR reports).’
‘Online databases.’
‘Use GRI, including sector supplements. Use data
‘More GRI reporting.’ charts to summarize performance, and progress on
goals, with at least 3, but preferably 5 years of data
‘Focus on sustainability issues that they view as - and place all charts in a single section of reports.’
most material to their future prospects, provide
quantitative data that is comparable over time and ‘Annual ESG roundtables/lunches with key figures,
with industry peers.’ participating in webinars/seminars etc be willing to
talk through questions as and when they arrive …
‘Answer our questions; use standardized reporting.’ and answer my correspondence!’
‘Transparency on coverage of information reported ‘Integrated reporting.’
(policies, indicators, measures); simplify their
reporting to key managerial elements put in place.’ ‘Meet with investors - not only on Environmental
and Social issues but on Governance issues too.
‘Harmonize quantitative indicators further (i.e. use Integrate SRI and CG investor feedback in annual
the same indicators, with comparable scope, and reporting.’
stick to them over time.) This requires some industry
synchronization of reporting efforts. Fo further in ‘Be more honest about political donations and don't
the structuring of qualitative information.’ muddy the waters with PACs etc. Also more
transparency on lobbying, donations to think-tanks
‘More KPIs/hard facts.’ and other astro-turfing activities.’
‘Make their webcasts easier to log into.’ ‘Incorporate sustainability information into the
annual report, as recommended at the Rio+20
‘Use GRI reporting standards; use consistent
event. Lots of separate reports mean it’s easy to
metrics each year; include clear and quantifiable
miss important ESG issues facing companies.’
goals and report on progress to those goals.’
‘I recommend regular mention of sustainability and
‘Organise more meetings.’
corporate governance matters in investor
‘Make them integral to company strategy, not an presentations as well as specialized presentations
extra - explain why sustainability is at the heart of (annually is sufficient) on these topics.’
how they do business. If it isn't, then don't bother
‘Be more precise, communicate and publish clear
talking about it.’
policies and programs. Be more transparent about
IRRI Survey 2012 29
30. degree of progress and eventual aims. Use ‘Return profiles to us with comments.’
quantitative targets where relevant.’
‘Comparable and verified reporting on KPIs that are
‘Be more honest that they are not really sustainable, relevant to their business.’
just moving very slowly in that direction. Say more
about financial benefits and costs of their ESG ‘They could systematically have their CSR data
strategies.’ certified by an independent organisation.’
‘Implement GRI reporting. Commit to the UN ‘Provide measurable / quantitative information.’
Global Compact. Provide data to CDP.’
‘Provide data such as ESG metrics and operational
‘Ignore the fluff (the 50 surveys and questionnaires metrics in download-able spreadsheet format. Also,
that are not well designed and that ask for data if a company tries to follow GRI guidelines, giving
they have already revealed). Put their GRI map in a short and concise summaries of each GRI section
place where it is easily accessible.’ would be helpful as opposed to giving a page
reference.’
‘Improve consistency in communication towards
investors and research agencies. Increase public ‘Have someone senior who is familiar with the
disclosure of multiple year data.’ requests of those interested in sustainabiliity/CG
matters.’
‘Certification by external auditors; shorter reports;
focus on KPIs, with historical data when possible; ‘Genuinely integrate their sustainability strategy,
publish news on CSR/ESG issues (on a relevant and management and performance into their annual
reasonable frequency: quarterly, semi-annual - just financial reporting.’
like financial communication.’
‘Have more disclosure of practices available in the
‘More distribution via general media.’ public domain.’
‘More regular ESG roadshows as opposed to ad hoc ‘Consistent use of KPI's (i.e. that cover a period of 3+
ESG investor meetings.’ years) that are clearly disclosed in annual
reports/CSR reports. Clear outline of board level
‘Change the CSR departments from the responsibility for ESG issues.’
communications department to the investor
relations department, or much better create the ‘Companies should be transparent and
Chief Sustainability Officer to report to the CEO & sit comprehensive in their communications.’
on the Executive Board.’
‘Be transparent and consistent on year to year
‘Better alignment with financial reporting cycles; reporting. Include selected quantitative info on the
disclose what is material in a comparable way.’ key / strategic areas for the business and report
them in the annual report and not a specific CSR
‘Take our suggestions to the board; work on report.’
remuneration transparency.’
‘Plain language discussion of the principles behind
‘Avoid ""cut and paste"" responses to questions on their activity - to demonstrate the extent to which
sustainability and corporate governance. Include as they are aiming to control risks or add value - or the
much performance data as possible to illustrate extent to which they are aiming to tick boxes.’
systems are working as well as descriptive
comments to explain anomalies in performance ‘Offer to investors meetings with practitioners
data.’ (purchasing managers, operational managers); Give
more details on the inner workings and reality of
‘Provide data sheets with 5 years of data.’ operations for a board and its members.’
IRRI Survey 2012 30
31. ‘Offer annual dedicated meetings with ESG teams ‘Integrate reporting of financial and non-financial
and mainstream fund managers.’ issues.’
‘Trim down CSR reports to focus on the material ‘Special SRI investor days.’
issues for a company. It's not about 120 page CSR
reports. Make other relevant data available on their ‘Publish one single report on sustainability matters,
websites.’ including some links for some development, but
without disseminating information all over their web
‘More quantitative data on their improvements over site and many different reports.’
the years.’
‘Report EHS performance data to a standard that
‘Sustainability Report in English is a must. It should enables benchmarking and compare their own
be made according to GRI G3 guidelines. Top performance to industry benchmarks. Provide
management roadshows with a special focus on access to operational management, especially on
ESG issues. Specialist company ESG presentations controversial issues.’
for investors.’
‘Make it easy to figure out, on their websites, what
‘More concise reporting, more quantitative data and specific person to contact with questions and
trasparency on senior and board responsibility for provide that person's email address.’
ESG issues. ‘
‘Communicate direct links between sustainability
‘Understand that philanthropic programmes and and competitiveness/financial performance.’
initiatives are not relevant to analysing the effects of
sustainability and corporate governance on ‘Integrated Reporting.’
operations; report data to Bloomberg ESG; work
with brokers to organise SRI roadshows.’ ‘More relevant and material quantitative data &
metrics.’
‘More detail on environmental and social policies,
processes, statistics and targets in general.’ ‘Include all their up to date information in one place
- either on the website or in an annual CSR report.
‘Pare down their reporting and stick to what is most Do not publish overlapping information in different
important. Fewer anecdotes, more data.’ places without clear indication as to which is the
most recent information.’
‘Integrated reporting that shows how ESG issues are
really embedded in the company's business model ‘Connect you to the company expert on whatever
and strategy.’ issue you are discussing.’
‘Clear and easy accessible/user friendly
documentation. Do not spread information out all
over the website, AR, CSR & GRI reports. Please
keep to the same format over the years with a good
index.’
‘Integrated Reporting.’
‘They can separate the data from all the text and
pretty pictures. We would most prefer that
companies put their KPIs on one page, with
achievements versus goals clearly listed. We prefer
more quantitative metrics and fewer case studies.’
IRRI Survey 2012 31
32. EXTEL
Established in 1999, when Thomson Reuters CONTACTS
acquired the Extel Survey from the FT Group (part
Thomson Reuters Extel
of Pearson).
The Thomson Reuters Building
Initially 5 people, the team has expanded over the
period 1999-2012 to a current strength of 25. 30 South Colonnade
This expansion has both enabled us to develop Canary Wharf
the Pan-European Survey to become the leading
indicator of investment industry opinion in Europe, London E14 5EP, UK
and to respond to the demands we have had for
T. +44 (0) 20 7542 7700
additional survey and investment industry
research consultancy work. F. +44 (0) 20 7542 7704
Our policy is to keep the consultancy team as E. extelsurveys@thomsonreuters.com
small and focused as possible, in order that we
provide direct service to each of limited number www.extelsurveys.com
clients.
ACTIVITIES
• Thomson Reuters Europe
• Thomson Reuters UK Small Caps
• SRI (socially responsible investing)
(undertaken in conjunction with UKSIF – the
UK industry group for social investing)
• Thomson Reuters Extel Asia & Japan
• Consultancy projects on behalf of sellside
firms, buyside houses and quoted companies.
We have undertaken a range of specific
assignments over the last 6 years for
organizations in all three of these areas. As is
usual with this work, client names and the
nature of the work remain confidential. They
include a major US investment bank, several
European investment banks, two UK-based
FM institutions and quoted companies in
insurance, pharmaceuticals, real estate and
transport.
IRRI Survey 2012 32
33. SRI-CONNECT
SRI-CONNECT (www.sri-connect.com) is an online SRI-CONNECT USER BASE
global marketplace for SRI research and meeting
The site currently has over 1,500 registered users
point for companies, investors and their respective
spread over the following geographies and user
advisors. It provides practical research resources
types:
and communications channels to accelerate the
inclusion of sustainability factors in 'mainstream' Geographical spread of SRI-CONNECT users
analysis & investment.
• UK – 40%
The site enables users to: • USA & Canada – 16%
• France – 10%; Rest of Europe – 25%
• understand developments in SRI and its • Asia – 4%, Australia – 3%, Other – 2%
interface with 'mainstream' investment
practice Spread of SRI-CONNECT user types
• present themselves to the SRI industry and
• SRI research providers – 40%
review the sustainability & investment activity
• Asset managers – 30%
of others
• Quoted companies – 10%
• manage information and relationships with
• Asset owners – 3%, Investment consultants –
peers, partners, suppliers and customers
2%
• Others (all with direct professional exposure
SRI-CONNECT’S BUSINESS MODEL: to CSR & SRI) – 15%
• 20% of the site’s value is free-to-view;
• 40% requires registration (free, but only CONTACTS
available to those with a professional
Mike Tyrrell
exposure to CSR, IR, SRI or CG);
• 40% requires a modest subscription (which Editor, SRI-CONNECT
costs less than one day at a conference!)
T. +44 (0) 20 7119 6640
E. mike.tyrrell@sri-connect.com
KEY FEATURES OF SRI-CONNECT:
• Market Buzz –peer to peer news channel
highlighting what’s happening in global SRI
• Directory – SRI’s Who’s who’ containing
profiles of over 5,000 companies, individuals,
funds & indices
• Info & Comment – comprehensive & dynamic
analysis of sustainable business & the SRI
industry
• SRI Network – The SRI industry’s
communications centre
IRRI Survey 2012 33
