Sustainable and Responsible Investing:
Where Are We and Where Do We Go From Here?
Brussels, December 3, 2012
EUROSIF – The leading pan-European sustainable
investment membership association
1
Proximity to EU domestic
markets via national SIFs
2
Multi-stakeholder
organisation
3
European focus
• Partnership of 8 national SIFs
• Supported by about 70 Member Affiliates
A multi-stakeholder organisation with around 70
Member Affiliates
Eurosif Key Activities
Hands-on EU
Advocacy
Thought
Leadership
Standard setting/
Terminology
Promotion of SRI
Member Affiliate Network Servicing
Created with the support of:
Created with the support of
Introduction: No Single Market for SRI
Sustainable and Responsible Investment Strategies
• Sustainability themed
• Best-in-Class and Positive screening
• Norms-based screening
• Exclusions
• ESG Integration
• Engagement and voting
• Impact investing
Simplified Country Perspectives on SRI
Country
Key SRI practices
Regulatory Highlight
Select SRI Facts
Belgium
Norms-based; Best in
Class, Exclusions
Investment in anti-personnel
mines is forbidden (March
2007)
BEAMA / Febelfin Initiatives;
Strong retail penetration
France
Best in class / positive
screening/ ESG
Integration
Article 225 (2012) on ESG
reporting for Asset Managers;
Grenelle II
Role of French Employees
Savings Plans
ESG Integration &
Engagement
Statement of Invest. Principles
(pensions, 2000)
Strong PRI signatory base
United
Kingdom
Netherlands
UK Stewardship Code (2010)
ESG Integration &
Engagement,
Exclusions
Pending legislation to ban
investment in cluster munition
(2013)
Influence of large Pension
Funds
Top market in most
strategies
Overview of SRI Strategies Used in Europe
Source: Eurosif
Growth Compared to Overall Market
Source: Eurosif, EFAMA
Sustainability themed
• Almost doubled since 2009
• Now found in almost all countries surveyed
• Demand growing in Holland, Germany, UK, Switzerland
Source: Eurosif
Exclusions
• Covers ~28% of European total AuM
• Key drivers: German, Swiss and Dutch markets
• Policies covering cluster munitions and anti-personnel
mines now cover 48% of Europe’s AuM
Source: Eurosif
Impact Investing – Space to watch
Total size of market is:
€ 8.75 billion
• Institutional and retail investment assets.
• Excludes Development finance + community
banking deposits
Source: Eurosif
Breakdown by type of investor
Europe Retail Average: 6% (Spain 3%)
Relative Decline vs Institutional
Source: Eurosif
Drivers of SRI Demand
Legislative drivers
Legislative drivers
Red Flag !!
Source: Eurosif
HNWI remain a key distribution channel for SRI
+18%
+58%
• Increase by ~60% between 2009 and 2011
• Overall European HNWI Wealth increased by 18%
Source: Eurosif, 2012
Share of Sustainable Investments in Total HNWI Portfolio
• The share of wallet of Sustainable Investments has increased
• HNWIs allocating over 50% to SI have doubled (25%)
Source: Eurosif, 2012
Attitudes to Sustainable Investments
Source: Eurosif, 2012
Thematic and Best-in-Class are popular with HNWI
• Positive screening and Sustainability-themed mostly used
• Substantial increase of Impact Investing
• Strategies often combined in a portfolio (Core-Satellite)
Source: Eurosif, 2012 Note: impact investing not directly comparable with previous years
Conclusions
• All strategies have grown since 2009 (faster than market)
• Increasing investor interest for Impact Investing
• Institutional investors remain key drivers
• Data shows continuous demand by European HNWI
• However, general retail demand remains a challenge
 How can the industry address this?
Contact / Follow Eurosif
[email protected]
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LinkedIn/eurosif
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facebook/eurosif
Rue du Progrès 331
B- 1030 Bruxelles
+32 274 14 35
Registered Office: La Ruche, 84, Quai de Jemmapes,
75010, Paris, France
Back-up
Sustainability Themes Used (ex. Impact Investing)
• Strong domination on
environmental issues (energy /
climate)
• But all themes have experienced
growth, indicating that other
themes become increasingly
attractive (eg. health)
Source: Eurosif, 2012
Back-up
Impact Investing Approaches Used
• Microfinance preferred but less so
than with overall market (55%)
• Attractiveness of Social Business
investments is higher than the
overall market (19%)
Source: Eurosif, 2012
Motivations for Sustainable & Impact Investing
Sustainable Investment
Source: Eurosif, 2012
Impact Investing
Back-up
Barriers to Sustainable & Impact Investing
Sustainable Investment
Impact Investing
Back-up
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Eurosif 2012 12 03_FEBEA Event Presentation 1