Investor demand, both on private and institutional levels, exists. Financial establishments are starting to set up dedicated SRI product offers. Analysts and especially managers have started to integrate this criteria into their professional practices...
- This initiative was developed as part of the European Campaign for Social Responsibility within Companies 2005, which is in response to a request by the Heads of State and Government leaders of the European Union at the Lisbon summit in March 2000. (www.csrcampaign.org).
- The Campaign was launched in June 2001 by CSR Europe, the International Business Leaders Forum, the Copenhagen Centre and 15 nationwide partners, in order to draw the attention of 500 000 company representatives and partners to the theme of companies' social responsibility.
- The survey will be presented at the gala evening " Europe investing in values " in Brussels on 27 November.
92% of European financial analysts and managers think that the development of SRI is an approach to be encouraged.
European analysts and managers think that the development of SRI will have a positive effect on both company and investor behaviour.
- 91% think that this will encourage a greater sense of responsibility on the part of companies both on social and environmental levels.
- 72% think that it will lead private investors to considering long term development criteria when making their investment choice. This figure rises to 80% in terms of investment choice by institutional bodies.
Almost all analysts and managers interviewed (92%) think that a company which commits itself to being socially responsible is better at managing environmental and social risks (50% absolutely agree, 42% quite agree).
83% think that the control of this risk has or will have a positive long term effect, both on the company's economic situation and on its experience as a quoted company.
A phenomenon which is taking shape: supply by financial establishments, client demand, recognition by investors…
One interviewee in three works in a financial establishment that already offers SRI products. This might increase to one in two in the future (48%). However, this fact dissimulates some differences between countries. SRI products seem to be better established in Belgium, UK, the Netherlands and Germany.
A tangible measure of the scale of the phenomenon is that nearly half of European analysts and managers interviewed (44%) think that the demand for SRI products is real on the part of institutional and/or private clients, according to what they have seen and the information they have available.
When they were asked about their professional practices European analysts and managers said - to a significant degree - that they favour socially responsible companies.
- 37% of European financial analysts favour these companies in their recommendations (12% absolutely, 25% quite).
- 51% of managers favour these companies in their investment choices (22% absolutely, 29% quite).
European financial circles would like information, transparency and "norms".
- Lack of communication by companies: nearly three quarters of analysts and managers (74%) think that company communication on social and environmental practices is insufficient at present, if these dimensions are to be integrated into the financial markets.
- Difficulties in defining and identifying SRI: 86% think a lack of transparency in SRI defining criteria is an impediment to their development. 78% point to the lack of consensus on SRI assessment criteria and methods.
- Lack of information on SRI results: an obstacle for 85% of interviewees.
When a series of activities are suggested to enhance the development of SRI, European analysts and managers greatly value the role of…
- Authorities: 75% think they have a role to play, by creating fiscal incentives to promote SRI or legislation encouraging communication on the subject.
- The Media: 87% hope they will distribute more information on SRI.
- Quoted companies: 87% would like to see an improvement in the dialogue between analysts, investors and companies using the existing vectors and media (A.G.M., presentation of results, annual report …) or by direct contact.
- Financial market / information professionals, market organisations: expect the development of specialist research on SRI performance (79%), harmonisation of criteria and assessment methods (79%), the establishment of dedicated indices (78%), the creation of a data base listing SRI products (82%)…
- Financial establishments: 77% of analysts and managers mention the current lack of marketing of SRI products…
