The Future of Investment:
Sustainable Index Investing
September 2010
A downloadable PDF version of this report is available here.
Introduction
Penny Shepherd MBE
Chief Executive, UKSIF
This second report, “Sustainable Index Investing” considers the various approaches and some of the product offerings that have already been developed as well as identifying trends, challenges and future directions. It brings together specialists from index and ETF providers, investment consultants and research firms.
The dialogue demonstrates:
· Sustainable indexes take a number of different forms, meaning they can meet the differing priorities and needs of investors; both institutional and HNWI
· Investors are looking at sustainable indexes for both products and performance measurement. They can provide exposure to sustainable investment themes as well as be a tool for performance measurement and risk management. In all cases investors approach sustainable indexes to achieve both financial and social and environmental value
· Challenges of data quality, transparency and standards are evident but are being addressed by leading-edge consultants and firms
· An expectation of growing investor demand is driving innovation and diversification.
We welcome your feedback on “The Future of Investment: Sustainable Investment Boutiques”, including themes you would like to see covered in future reports. Contact us at info@uksif.org.
The Panel
David Harris, Director of Responsible Investment, FTSE Group
David joined FTSE in 2002. His responsibilities include overseeing index management, corporate engagement with index constituents, managing research partnerships and developing new Responsible Investment indices. Additionally, David serves as board director of UKSIF and as a judge for the FT Sustainable Banking Awards. Previously, David worked for Arthur D. Little’s Global Environment and Risk Practice and with PwC’s climate change consulting team.
Will Oulton, Head of Responsible Investment-EMEA, Mercer
Will joined Mercer in May 2010. Previously, Will was Director of Responsible Investment at FTSE Group where he led the development of FTSE's sustainability indices and services. In June 2009, he edited the book "Investment Opportunities for a Low Carbon World" and in February 2010 was appointed Vice President of Eurosif. Will is also a Special Lecturer at Nottingham University Business School and sits on a number of advisory committees.
Thomas Kuh, Business Manager, ESG indices, MSCI
Prior to his current role at MSCI Inc. Thomas was Head of ESG Indices at RiskMetrics Group, which MSCI Inc. acquired in June 2010. Dr. Kuh joined RiskMetrics in November 2009 through the acquisition of KLD Research & Analytics. During his 17-year career at KLD, Dr. Kuh held a number of positions, most recently Managing Director of KLD Indexes.
Rory Sullivan, Head of Responsible Investment- Osmosis
Rory is widely recognised as an international expert on the investment implications of climate change and has played a leading role in UK and EU public policy debates He is a member of the World Economic Forum's Taskforce on Low Carbon Economic Prosperity, was formerly a member of the Steering Committee of the Institutional Investors Group on Climate Change and Chair of theConfederation of British Industry's Carbon Reporting Working Group. He writes widely on these issues, his works include Corporate Responses to Climate Change (2008) and Responsible Investment (2006).
Emma Hunt, Senior Investment Consultant, Towers Watson
Simon Thomas, CEO, Trucost
Disclaimer: This publication should not be taken as financial advice or seen as an endorsement of any particular company or individual. The opinions expressed in this document are those of the named contributor and do not necessarily represent the views of UKSIF. Whilst every effort has been made to ensure the information contained in this document is precise, UKSIF cannot guarantee accuracy.