Saturday, February 19, 2011

Sustainable Investing: Principles and Practices


Sustainable Investing: Principles and PracticesIn this paper we draw upon the findings of two recent works, Sustainable Investing Principles by Roger Urwin and Claire Woods, and Sustainable Investing Practice: Simplified Complexity by Urwin in considering sustainable investing principles and practices. They observe that sustainable investing has not yet reached the top of the agenda for many institutional funds, but that opportunities exist for priorities to be realigned to better meet the long-term needs of the funds and beneficiaries. The sustainable model advocated is based on principles which seek a broader mission, deeper thinking on investment and a longer-term framework for evaluating success. This approach combines the opportunities in the traditional areas of asset allocation and manager selection with extra-fi nancial factors, including environmental, social and governance (ESG) issues.

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