Investors needs to take stock of environment too

20 May 2009: After the release of the EPRU research report on Environmentally Responsible Investment (ERI), Business Report (a business section included in five national daily papers including Cape Times and The Star in Johannesburg) opened its columns to EfD/EPRU fellow Dr Stephanie Giamporcaro to share her views on the future of ERI.

By Stephanie Giamporcaro:

As the economic recession led the worldwide media headlines last year, it was closely followed by the rising concern of climate change. Slowly but surely climate change and other concerns, such as water scarcity and biodiversity, are becoming bigger issues on the civic and political agenda globally.

This growing awareness around environmental risks is also becoming more visible in the market. Companies are starting to implement and communicate their environmental sustainability strategies. South Africa is grappling with its economic development agenda within the context of these growing climate change challenges. The local financial sector is defining its role as a tool for environmentally responsible growth. The investment sector has, for the past decade, been engaging with the new world of responsible investing. There has been, for example, a growing participation by industry players in initiatives such as the UN's Principles for Responsible Investing.

South African asset management companies, however, have not fully integrated environmental considerations into their investment decision making.This is according to a new study conducted at UCT's Environmental-Economics Policy Research Unit and released at the UCT Graduate School of Business.

Link to full article: http://www.busrep.co.za/index.php?fArticleId=5477362

News | 24 May 2010