Transcript
© EIRIS 2
Agenda
• EIRIS Overview• Drivers of Responsible Investment in Asia• EIRIS Study –The State of Responsible
Business (Asia)• A look Ahead
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EIRIS & our Partner network• Not-for-profit research organization specializing
in environmental, social and governance research on publicly listed corporations
• 28 years experience in SRI
• Extensive coverage of @ 3,000 companies worldwide, and 7,000 companies on selected criteria.
• Offices in London, Boston & Paris with partners in Cape Town, Seoul, Mexico City, Canberra, Hanover, Madrid & Tel Aviv
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EIRIS & Emerging Market ResearchIssues Company Coverage
ESG ‘Core’ 300 Large Cap Emerging market companies researched on ‘Core’ environmental, social and
governance issues
Compliance with International
norms
Emerging Markets 700+ (Large and mid-cap stocks)
ESG news monitor& Controversial
Weapons
Wider Universe (up to 9,000 companies or custom portfolio reviews)
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EIRIS work in Emerging Markets
• Asia top 30 with HERI• EMDP Research Paper and Engagement • Sustainable Stock Exchanges Initiative• JSE – SRI Index• MSE – Sustainability Index
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Pressing ESG Challenges
Governments Stock Exchanges – Sustainability & increasedDisclosure
‘Scorecards’- CDP :
GlobalInvestor demand
UNPRI, ICGN
Drivers for RI in Emerging Asia
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The Current state of Responsible Business (Asia)
• What’s in the study?– Responsible business snapshot– FTSE All World Developed Index (+ 50 Chinese
companies)– Progress report
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Key issues examined:
EnvironmentalIssues
Social-Stakeholder issues
GovernanceIssues
Environmental Impact
HR & Labour Risk exposure
‘Core’ governance
Management Systems
Human Rights Bribery
Climate Change Supply Chain Issues
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Environmental Performance
• Most likely area for companies to demonstrate strong management strategies
• KPIs include GHG emissions and Water use
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
CHN HK SIN KOR JPN
Unmanaged Risk
Some Progress
Good
Excellent
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Climate change
• No companies in Emerging Asia assessed above ‘some progress’
• No Chinese firms disclose any strategy on Climate Change management – worrying as we focused on the most transparent firms!
0%
10%
20%
30%
40%50%
60%
70%
80%
90%
100%
CHN HK SIN KOR JPN
Unmanaged Risk
Some Progress
Good
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Health & Safety
• one quarter of Asian companies demonstrated good health and safety systems
• China had the lowest percentage of companies managing their risk but had the highest percentage of companies making ‘some progress’ 0%
20%
40%
60%
80%
100%
CHN HK SIN KOR JPN
Unmanaged Risk
Some Progress
Good
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Human Rights
• Almost all Asian Companies (90%)had no human rights policy in place (where relevant)
• Pressures driving western firms to address Human rights and their supply chain not as powerful in Asia (civil society) 0%
10%20%30%40%50%60%70%80%90%
100%
CHN HK SIN KOR JPN
Unmanaged Risk
Some Progress
Good
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A Look Ahead• Asian Companies demonstrated far better management
of env issues then social issues but considerable room for improvement across the board
• Biggest drivers of ESG in Asia will continue to come from:– Increased pressure from regulation and policy-
makers (governments)– development of sustainable indices– greater reporting requirements– Investor demand is a weak but a growing driver
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