All Articles About Financial Services

Report: Reporting on Environmental, Social, and Governance Consideration in the Private Equity Sector

Private equity firms are facing increasing scrutiny and greater demand for transparency from investors and stakeholders at large. To secure long-term success, the private equity sector needs to adopt a more transparent and open approach to demonstrating how it contributes to social and economic welfare. Read more →

Posted: August 27, 2012 | Topics: Financial Services, Governance & Accountability, Reporting & Communications | Download (PDF)

BSR Insight Article: Four Ways to Attract Long-Term Investors

Laura Commike Gitman, Managing Director, Advisory Services, BSR, and
Hélène Roy, Intern, BSR

In 2011, the California Public Employees' Retirement System (CalPERS) adopted a "total fund" approach to sustainable investment, through which it committed to integrate the analysis of its portfolio companies' environmental, social, and governance (ESG) performance into all of its investment strategies. Like other pension funds or foundations, CalPERS has long-term liabilities and a fiduciary duty to its members, which, for CalPERS, is set out in California's constitution. By taking a wider perspective and by incorporating ESG criteria into its investment-decision process, CalPERS believes it can increase the financial performance of its portfolio and better achieve the long-term, risk-adjusted returns on which its members rely. For CalPERS' portfolio companies, this means their ESG performance is under greater scrutiny. For example, the pension fund will pay particular attention to a company's governance structure because poor governance often translates into poor decision-making and a decline in shareholder value. In another example, CalPERS will closely monitor emerging-market companies to ensure no infringement of social and human rights principles. CalPERS, with its focus on ESG integration, is not alone among mainstream investors—even in today's relentlessly short-term-focused economy. As evidenced by the growing number of UN Principles for Responsible Investment (UN PRI) signatories, asset owners and investment managers are embracing sustainable investing. As of June 2012, the 1,100 UN PRI signatories collectively represented US$32 trillion of asset under management, or 25 percent of the world's total financial assets. Two key drivers are leading this trend: Read more →

Posted: August 21, 2012 | Topics: Financial Services, Strategy & Integration

Report: Trends in ESG Integration in Investments: Summary of the Latest Research and Recommendations to Attract Long-Term Investors

As environmental, social, and governance (ESG) integration in mainstream investments continues to grow, listed companies have real opportunities to attract desired long-term investors by enhancing and communicating about their ESG performance. Read more →

Posted: August 20, 2012 | Topics: Financial Services, Strategy & Integration | Download (PDF)

BSR Insight Article: Giving Business a Role in Reducing Carbon Emissions

Julia Robinson, Communications Associate

Government pledges and roadmaps might reduce global greenhouse gas emissions by 3 to 6 gigatons, but a significant gap—around 6 to 9 gigatons—remains to keep global warming below 2°C by 2020, which is the accepted threshold to avoid high-risk climate change. Read more →

Posted: August 7, 2012 | Topics: Climate Change, Financial Services, Leadership, Supply Chain

Blog: Is the Focus on Private Equity Giving Public Markets a Free Pass?

Aron Cramer, President and CEO

This year's U.S. presidential election season, like most, is dishing up more conflict than insight. One of the most distracting questions? Whether private equity is inherently good or bad. The more important question is whether the much larger public markets are functioning well and supporting an economy that delivers the kind of growth we want and need. Read more →

Posted: May 25, 2012 | Topics: Financial Services, Investor Perspective