S&P ESG India Index (January 2008)
Launched on January 30, 2008, the S&P ESG India Index is the first index of Indian companies whose strategies and performance demonstrate strong commitment to meeting environmental, social, and governance (ESG) standards. The index comprises 50 companies that meet certain ESG criteria and were selected from the country's 500 largest on the National Stock Exchange. It uses a two-stage screening process based on corporate disclosure and third-party information.
The index is the result of collaboration among IFC and three partners, who won IFC’s Capturing Value grant competition funded by the Dutch government in 2006. It draws on Standard & Poor's expertise in indices, KLD's experience and reputation on researching companies across ESG dimensions using public information, and CRISIL's strong understanding of the Indian business and regulatory context. Learn more about the index from www.standardandpoors.com/indices.
Trucost/IFC Study Finds That Listed Companies In Asia Are More Carbon Intensive Than In Other Regions (December 2007)
Asian listed companies are more carbon intensive than their peers in other regions of the world. Investors in Asian Equity funds are therefore more exposed to carbon risks. There are opportunities to reduce the carbon intensity of Asian equity funds by some 30 per cent without suffering loss in performance.
These are the main conclusions of a report launched on 11 December in Bali – Carbon Counts Asia 2007: Carbon Footprints of Asian Investment Funds. The study, commissioned by the International Finance Corporation and conducted by environmental research organisation Trucost, provides the first comprehensive review of greenhouse gas emissions by Asian companies by analysing the carbon intensity of the MSCI Asia ex-Japan index and 90 individual investment funds in Asia. Read more on the Trucost website...
Readers will need to register to download the report but registration is free of charge.
Who Cares Wins 2007 Report[PDF] (December 2007)
The theme of the fourth annual Who Cares Wins conference was New Frontiers in Emerging Markets Investments. During discussions, it was pointed out that financial and risk impacts from environmental, social and governance issues are particularly relevant when it comes to emerging market investments. In a speech given at the conference, IFC's Environment and Social Development department director, Rachel Kyte, emphasized this point, saying that "IFC firmly believes that environmental and social issues are inextricably linked in emerging markets, and that an economic expression of those issues in terms of both risk and opportunities is inevitable." Download the publication...
Who Cares Wins 2006 Report[PDF] (November 2006)
The Who Cares Wins conference, which gathers every year different actors from the investment chain, examined in 2006 the communication of environmental, social and governance (ESG) issues between companies and investors. A major challenge remains the fact that ESG issues are not easily quantifiable and therefore tend to be put aside by mainstream financial analysts who do not know how to enter them in their valuation models. Download the publication...
The Promise of Private Equity[PDF] (November 2006)
There is growing evidence that businesses can meet the demands of the commercial marketplace and still be environmentally and socially responsible. They can also become better prospects for investors as a result. This is demonstrated in IFC's new study "The Promise of Private Equity" through five case studies drawn from the portfolio of private equity funds in which IFC is an investor. The study shows how environmental and social sustainability was integrated successfully into core competencies and sound business management, thereby contributing directly to increased profits and better business performance. Download the publication...
Brazil's stock exchange promotes sustainability
To encourage companies to adopt sustainable practices and provide investors with a tool to monitor those companies, IFC has supported the creation of a Corporate Sustainability Index at the Sao Paolo Stock Exchange (Bovespa) the first of its kind in Latin America. Read more...
