18 February 2013. For the first time, Novethic has analysed the SRI performance indicators developed by some asset managers and a handful of asset owners. The aim is to measure, for example, whether socially responsible investment contributes to generating fewer carbon emissions, creating more jobs or improving transparency on executive pay. Focused on very precise aspects, these environmental, social and governance (ESG) indicators are hard to draw up because of a shortage of data about the companies concerned. Furthermore, at present the indicators cannot be used to assess the volume of CO2 emissions or the number of jobs created per one million euros invested.
Limited supply, growing institutional demand
Disincentives to development
Furthermore, indicators such as greenhouse gas emissions are not representative of an overarching sustainable development approach. SRI management uses a multi-criteria approach, which can be negatively impacted by a fund’s under-performance in CO2 emissions, whereas an overall company assessment shows ESG outperformance.
Hard to compare
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