INVESTMENT INDUSTRY INITIATIVES
SinCo is a stakeholder and promoter of systemic changes in sustainable investment in emerging markets. Current investment industry initiatives are promoting ESG factors in investment practice, improving ratings systems, developing metrics for ESG performance attribution, and the role of the emerging discipline of impact investment. Regional exposure includes:
- Global emerging markets (GEM)
- South Africa
GLOBAL EMERGING MARKETS
- The Emerging Market Disclosure Project (EMDP), an international initiative led by representatives from Boston Common Asset Management, Calvert Investments, and US SIF's International Working Group (IWG),
has been working since 2008 to assess and improve corporate
environmental, social and governance (ESG or sustainability) reporting
in emerging markets.
- EMDP has benefited from technical advisory support from the Principles for Responsible Investment (www.unpri.org), has conducted several baseline studies, engaged companies and won important victories on ESG reporting along the way.
- AfricaSIF.org MARKETPLACE TRENDS REPORT 2012 PROJECT
- Aggregating available information in 2011, the assets under management may be more than US$ 125 billion, making Africa a top 10 global marketplace for sustainable investment.
- This project will develop project plan, recruit project manager and project partners to research, analyze and publish the inaugural AfricaSIF.org Marketplace Trends Report 2012 looking at the sustainable investment market size and dynamics in 54 countries in Africa. See http://www.africasif.org/marketplace-and-trends-report.php
- For the first time, global SIFs are harmonizing the reporting, so AfricaSIF.org will contribute the Africa coverage into the global SIFs Trends Report in Dec 2012.
- SinCo is donating time and expertise to support this report by AfricaSIF.org
- ASISA RESPONSIBLE INVESTMENTS SUB-COMMITTEE
- PRUDENTIAL ASSETS WORKING GROUP [PAWG] 2009 - present
- SinCo has accepted the invitation of the Association for Savings and Investment South Africa [ASISA] to head the working group of the Responsible Investments sub-committee tasked with exploring the fiduciary role of responsible investment and the opportunities to integrate environmental, social and corporate governance [ESG] factors in prudential asset management. The Prudential Assets Working Group [PAWG] is conducting a six-step project plan connecting current global and African best practice and stakeholder engagement. www.asisa.org.za/index.php/info-centre/responsible-investment.html
- SinCo has been working with ASISA since 2009 providing secretarial and strategic support to the Responsible Investment sub-committee of the Board Investment Committee. SinCo Principal, Graham Sinclair, acts as Head of the Prudential Assets Working Group [PAWG].
- The Definitions Working Group
[DWG] of the ASISA Responsible Investment Standing Committee is developing a working definition for its members.
- CODE FOR RESPONSIBLE INSTITUTIONAL INVESTMENT IN SOUTH AFRICA (CRISA)
- CRISA is a code of investment principles which act as the investor version of the King III Code of Corporate Governance does for companies. the 5 principles outline the expected practice and policies of institutional investors in South Africa, including the need for transparency. The Code for Responsible Investing in South Africa (CRISA) was launched on 19 July 2011. Responsible investing and corporate governance guidelines in South Africa are largely voluntary.
- The Code aims to put in place the checks and balances needed to make this voluntary framework successful. Together with the King Report, which is also not legislation but rather principles and practices that are adhered to on an ‘apply or explain’ basis, the new Code will seek to encourage best practice conduct by shareholders and companies. In summary, CRISA consists of five principles:
- Principle 1 – An institutional investor should incorporate sustainability considerations, including ESG, into its investment analysis and investment activities as part of the delivery of superior risk-adjusted returns to the ultimate beneficiaries.
- Principle 2 – An institutional investor should demonstrate its acceptance of ownership responsibilities in its investment arrangements and investment activities.
- Principle 3 – Where appropriate, institutional investors should consider a collaborative approach to promote acceptance and implementation of the principles of CRISA and other codes and standards applicable to institutional investors.
- Principle 4 – An institutional investor should recognise the circumstances and relationships that hold a potential for conflicts of interest and should pro-actively manage these when they occur.
- Principle 5 –
Institutional investors should be transparent about the content of their
policies, how the policies are implemented and how CRISA is applied to
enable stakeholders to make informed assessments.
- CRISA requires institutional investors to fully and publicly disclose to stakeholders at least once a year to what extent the Code has been applied. If an institutional investor has not fully applied one of the Principles of the Code, the reasons should be disclosed. Disclosure as well as policies should be made public. CRISA has been endorsed by the Institute of Directors in Southern Africa (IoDSA), the Principal Officers Association (POA), and the Association for Savings and Investment South Africa (ASISA). The principles of CRISA are supported by the Financial Services Board (FSB) and the Johannesburg Stock Exchange (JSE).
- King III Code e-book http://african.ipapercms.dk/IOD/KINGIII/kingiiicode/?Purge=true
CRISA Code 2011Final.pdf
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- REGULATION 28 of Pension Funds Act 24/1956
- Revision of Reg 28 has placed South Africa at the forefront of bets practice in sustainable investment globally. The ASISA RI Prudential Assets Working Group were instrumental in developing the concepts and text of the regulations. Notably the Preamble to the regulations enforced in the investments by retirement-funding organizations such as Pension Funds, states:
- PREAMBLE "A fund has a fiduciary duty to act in the best interest of its members whose benefits depend on the responsible management of fund assets. This duty supports the adoption of a responsible investment approach to deploying capital into markets that will earn adequate risk adjusted returns suitable for the fund’s specific member profile, liquidity needs and liabilities. Prudent investing should give appropriate consideration to any factor which may materially affect the sustainable long-term performance of a fund’s assets, including factors of an environmental, social and governance character. This concept applies across all assets and categories of assets and should promote the interests of a fund in a stable and transparent environment."
- See also ...
- SA National Treasury website for more http://www.treasury.gov.za/publications/other/Reg28/
- SInCo LIBRARY for article Up In The Air: Billions of dollars are available to shift the investment landscape for Africa as Regulation 28 revises rules for South African retirement funds investment in 2011, including sustainable investment. published as "Ageing and investing gracefully" 1 July 2011 by Graham Sinclair, Africa Investor, July - August 2011
- Regulation 28 and stakeholder engagement 2009 - 2011 documents:
2011_NT_reg28_Reg 28 Comments Matrix.pdf
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2011_NT_reg28_Reg 28 for Budget 2011.pdf
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reg 28 Public forums rev 2.pdf
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20110223_NT_reg28_Reg 28 EM.pdf
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"Graham brings energy, ideas and networks for solutions to complex challenges linking good business practice with good development practice. He is an exceptional facilitator of expert panels and groups of diverse stakeholders." Manager, international financing facility, international organization, Geneva.
"Graham is as passionate about sustainability as he is about emerging markets and the African continent in particular. He is a very hard worker who sets about his taskas with enthusiaism and creativity.Those qualities were instrumental in ensuring a sizeable contingent of signatories to the Initiative in South Africa within a relatively short space of time. His skills and drive will be sorely missed."
CEO, PRI signatory organization.
"For many investors, getting to grips with ESG issues in emerging markets is a top priority. Graham's work at PRI was crucial in encouraging new partnerships in diverse markets for this valuable work." Executive Director, foremost responsible investment organization in Asia and former i-banking analyst.
“Graham has been the driving force behind the PRI in EM Working Group, bringing the necessary expertise, energy and ingenuity to mobilise a group of interested asset managers and asset owners and stimulate collaborative action. His commitment, along with his convening and facilitation skills, will make him a great asset for future employers.” - SRI Analyst & PRI Coordinator, global asset manager, Paris, France.
“Graham is one of those people whom you will rarely meet in life. He is someone who you will almost immediately admire for his obvious love for, and knowledge of, his subject area. He is someone with whom you will quickly become close friends because of his truly genuine and welcoming nature. And, most meaningful of all, he is someone for whom your respect will only grow the longer that you know him based on his commitment to his personal and professional passions, not to mention for his true commitment to yours as well.” - Policy Advisor, US Secretary of State Office, Washington DC, USA.
“I have met Graham in its role as project director for the PRI. Graham is focused on his objectives and extremely professional. I look forward to work with him again.” - Managing Director, Hedge Fund-of-Funds, Zurich, Switzerland
“Graham is a bright, talented and knowledgeable individual. His passion
and enthusiasm for the UN PRI work was inspiring. Graham is
results-oriented and an effective communicator. It was a pleasure
working with him.” - Asset consultant, leading global asset consulting firm, Portland, Oregon, USA.
“Graham's energy, networking and strategic thinking has helped the UN Principles for Responsible Investment build incredible momentum in non-traditional financial centres.” - Project Manager, PRI, Sydney, Australia.
“Graham was extremely helpful in steering Harvard Business School students with expertise in CSR. As a co-VP for CSR among MBAs at Harvard Business School, I strongly recommend tapping into Graham should you need any insights in CSR or social responsible investments.” - global industry analyst, major US asset manager, Boston, USA.
“Graham served as a strategic adviser to a large US Asset manager as we worked together on developing their sustainable investment strategy. He provided on-going support to their internal team and served as a knowledgable and helpful sounding board as their staff tried to move the sustainablity 'file' forward.” - Analyst, global ESG services vendor, Boston, USA.
“Graham is an enthusiastic, positive and innovative individual who is focused on progress and change. His energy is infectious. - index manager, global ESG services vendor, Boston, USA.
“Graham is a delightful and hard-working colleague. He teaches on the CSR graduate programme I lead at the University of Geneva and has been getting better every year. He is ready to take criticism and advice in a non-combatative, mature and friendly way. He is truly an expert in his field and I would highly recommend him for teaching, advising and as a colleague. My fortune to have met such a brilliant person who, no doubt, will be a future leader of many important concerns.” - professor and co-ordinator, CSR executive education programme, Washington DC USA and Geneva, Switzerland.
“Graham has a passion for Responsible Investing & Sustainability and
as Chair of the Prudential Assets Working Group [PAWG] he brings this
unique passion and energy to the group.
With his focus and dedication to the sustainability cause, he manages to
bring his valuable insights from various experiences in developed
markets and always manages to apply this to the South African context.
He is a valuable and respected member of the Prudential Assets Working
Group.” - analyst, ESG asset manager and colleague, ASISA, Cape Town, South Africa.
“Graham worked on the ATNI project as external advisor and his insight enabled the project to develop from concept to implementation. He is a creative thinker with an out-of-the-box approach that was key for this project. Last but not least, he is a good team worker and fun to work with!” - Project team member: communications, international organization, Geneva, Switzerland.
“Graham is an exceptional professional in all that he does. His work is
at the crossroads of business intelligence, finance and investments and
sustainability. His ability to clarify objectives and execute on
solutions has demonstrated the fruitful success of the business case for
sustainability.” - Director and Senior ESG Analyst, global asset management arm of major European bank, New York, NY USA.
“Graham is passionate and committed to Responsible Investment. I first became aware of Graham in his UN PRI role. More recently I have worked with Graham on the ASISA Prudential Assets Working Group. The group is working to improve collaboration and consensus in the investment industry on material Responsible Investment issues. A recent important result was the South African Treasury accepting and integrating into Regulation 28 of the Pension Funds Act, a recommendation from the work group that trustees of Pension Funds should consider material ESG issues for all asset classes. It has been a pleasure to work with Graham.” - Senior Investment Analyst, active ownership ESG asset management firm and colleague, ASISA, Cape Town, South Africa.