Media Contacts
Kathy Valentine
+1 (434) 227-2177
kathy.valentine@cfainstitute.org
Jessica Galehouse
+1 (434) 951-5376
jessica.galehouse@cfainstitute.org
New ESG Manual from CFA Institute Centre Helps
Investors Evaluate Environmental, Social, and Governance
Factors
CFA Institute Centre for Financial Market Integrity to
Introduce Manual at “ESG Factors & Metrics for Investors,” on July 8,
2008
New York, June 25, 2008 − The CFA Institute
Centre for Financial Market Integrity, the global policy authority on
professional and performance standards, financial reporting, and capital
markets, today launched Environmental,
Social, and Governance Factors at Listed Companies: A Manual for
Investors to assist investors in understanding how a company
deals with environmental, social and governance (ESG) issues. “Once
considered ‘fringe issues,’ these topics are now part and parcel of the
metrics used by investment professionals to analyze and value the public
companies they invest in,” noted Kurt Schacht, CFA, managing director of
the CFA Institute Centre.
The ESG Manual, a companion to The Corporate
Governance of Listed Companies: A Manual for Investors, is
designed to help investment professionals identify and properly evaluate
the risks and opportunities that ESG issues present. “The ESG
Manual will help clarify and decipher the sparse and inconsistent ESG
information provided in the current financial reports coming from
companies,” added Schacht.
The ESG Manual cites several statistics about the growth of the
ESG importance to investors, including:
- Some of the largest investment firms such as Citigroup, Goldman Sachs, JP Morgan, UBS, and West LB currently have dedicated ESG units.
- According to Demystifying Responsible Investment Performance, a 2007 report from the Asset Management Working Group of the UN Programme Finance Initiative, there is a positive correlation between a company’s ESG behavior and an impact on its bottom line.
- In April 2006, investment funds representing more than US$4 trillion in assets back the UN Environment Programme Finance Initiative and the UN Global Compact Principles for Responsible Investment (PRI). Currently, more than 300 global institutions representing more than US$13 trillion had endorsed the PRI.
“Investors are generally well versed in analyzing a public company’s
financial data, but as more and more firms provide non-financial ESG
metrics, investors are finding it challenging to understand and
incorporate this into their research models,” said Matt Orsagh, CFA,
CIPM, project manager for the ESG Manual and senior policy analyst
at the CFA Institute Centre. “The ESG Manual, in conjunction with
other CFA Institute Centre manuals on corporate governance and executive
compensation, help investors better evaluate a broad range of
non-financial factors and risks. We live in a world where events such as
the news of a company’s poor safety record or the ramifications of
greenhouse gas legislation potentially have substantial impact on a
company’s financial prospects.”
The CFA Institute Centre, Bloomberg LP, and the New York Society of
Security Analysts are hosting a presentation on the ESG Manual and
new tools from Bloomberg that aim to help investment professionals
identify, track, and evaluate ESG factors and the associated risks and
opportunities.
DATE: Tuesday,
July 8, 2008
TIME:
5:30 – 7:30 p.m.
LOCATION: Bloomberg
731
Lexington Avenue, 6th Floor
New
York, NY 10022
Photo
ID required to enter building.
SPEAKERS: * Alex Clode, CFA, senior business manager,
Bloomberg, LP
*
Matt Orsagh, CFA, CIPM, senior policy analyst, CFA Institute Centre
MEDIA RSVP: Contact either Kathy Valentine or Jessica
Galehouse. Registration deadline is July 2, 2008.
About the CFA Institute Centre for Financial Market
Integrity
The CFA Institute Centre develops timely, practical solutions to
global capital market issues. Established in 2004, the CFA Institute
Centre builds upon the CFA Institute mission to lead the investment
profession globally by setting the highest standards of ethics, education
and professional excellence. It carries forward the organization’s
60-year history of standards and advocacy work, especially its Code of
Ethics and Standards of Professional Conduct for the investment
profession. More information may be found at www.cfainstitute.org/centre.