Download - A European SRI Market Review
A European SRI Market Review
London, November, 2012
Created with the support of:
Introduction
Sustainable and Responsible Investment Strategies
• Sustainability themed• Best-in-Class and Positive screening• Norms-based screening• Exclusions• ESG Integration• Engagement and voting• Impact investing (NEW!)
Overview of SRI Strategies Used in Europe
Source: Eurosif, 2012. Excludes Impact Investing
Growth Compared to Overall Market
Source: Eurosif 2012, EFAMA 2012
Sustainability themed
• On the rise again: ~+90% since 2009• Now found in almost all countries surveyed• Key driver: institutional Dutch mandates
Source: Eurosif, 2012
Best-in-Class and Other Positive Screens
• Third fastest growing strategy: +113% since 2009• Steady rise in several markets • Key growth drivers: Sweden and France
Source: Eurosif, 2012
Norms-based Screening
• First measured in 2010 as a distinct strategy• Fastest growing strategy since 2009: +137%• Key drivers: few large players in France, Italy
Source: Eurosif, 2012
Exclusions
• Second fastest growing strategy since 2009: +118%• Covers ~28% of European total AuM• Key drivers: German, Swiss and Dutch markets
Source: Eurosif, 2012
Integration
• Growth since 2009: 14%• Top markets: France, UK, Netherlands• Key drivers for growth: Netherlands, UK
Source: Eurosif, 2012
Engagement / voting
• Growth since 2009: +17%• Key drivers: Netherlands• Top countries: UK, Netherlands, Denmark• Spreading to other markets (Italy, Spain)
Source: Eurosif, 2012
Focus on the UK– Market Breakdown by Strategy
• Dominance of Active Ownership and Integration strategies• UK is a top #3 EU market for sustainability-themed now !
Source: Eurosif, 2012
Focus on the UK– Evolution by Strategy
Source: Eurosif, 2012
• Continuous growth of Integration (see PRI signatories)• Strong growth of norms-based: +86% (space to watch)• Growth in Exclusion number not to be seen as market trend
Drivers of SRI Demand
Legislative drivers
Legislative drivers
Source: Eurosif, 2012
Created with the support of:
Which role for UK Corporate Pension
Plans?
(Extracts)
SRI Policy Adoption by (large) UK Corporate Pension Plans
Source: Eurosif, Corporate Pension Funds and Sustainable Investment, 2011
The CSR Policy of UK Plan Sponsors Is The Second Most Important Input to the SRI Policy
Source: Eurosif, Corporate Pension Funds and Sustainable Investment, 2011
Key Take-Aways
• All strategies have grown since 2009 (faster than market)
• In the UK:• Domination of Engagement /. Voting & ESG Integration• Sustainability-themed less important but top EU market• Watch this space: Norms-based + Impact Investing
• Institutional investors remain key drivers
• The CSR policy of the company can / should play an important role in SRI adoption
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Questions?