Five-Year Project Brought Toghether More Than 50 Participants and Engaged 72 Leading Emerging Market Companies
Published 10-15-12
Submitted by Calvert
The Emerging Markets Disclosure Project (EMDP) released its final report today, Lessons Learned: The Emerging Markets Disclosure Project, 2008 – 2012, documenting a five year initiative championing greater transparency among emerging market companies on key environmental, social and governance (ESG) issues. The project, which attracted more than 50 participants, including asset owners, investment managers and service providers:
US SIF CEO Lisa Woll said, “As our members’ product offerings continue to expand into emerging markets, the reporting improvements promoted by the EMDP are critical. The significant progress made by the project in persuading emerging market companies to report according to internationally recognized standards, including the Global Reporting Initiative (GRI), will likely have ripple effects for many years to come.”
Members of the International Working Group (IWG) of the US SIF Foundation, a supporting organization of The Forum for Sustainable and Responsible Investment, created the EMDP in 2008 with leadership from US SIF members Boston Common Asset Management and Calvert Investments. The project also benefited from technical assistance and local coordinative support from the PRI Secretariat, as well as in-house expertise from GRI and the International Finance Corp. (IFC).
EMDP Co-Chair and Boston Common Asset Management Managing Director Lauren Compere said, “The make up of the country teams, which included international investors and local partners with knowledge of local customs, language and contacts with companies, proved a winning combination. In addition, the educational outreach to companies and other key stakeholders on how sustainable and responsible investors use ESG information was critical to the project’s success.”
And, the project had many accomplishments:
EMDP Co-Chair and Calvert Investments Senior Sustainability Analyst and Manager, Index, Mike Lombardo said, “The strength of the in-country teams can not only be seen in the results of the engagement efforts, but also in many of the local events hosted by the teams, including meetings between investors and local companies, as well as with local regulators. In many cases, the activities of the EMDP sparked a national dialogue on the strategic advantages of assessing sustainability risks and having ESG data available to investors. In fact, the project partners found that local exchange listing and regulatory requirements were the most important drivers of sustainability reporting in emerging markets.”
PRI Secretariat Head of Investor Engagement Valeria Piani said, “Based on the success of the project, PRI hopes to continue the EMDP’s efforts to coordinate engagement activities among international and local investors in emerging markets in the coming years, gradually moving from engagement activities primarily focused on enhancing ESG disclosure to in-depth dialogue with companies on their sustainability performance.”
The full report can be found at: http://ussif.org/projects/iwg/documents/EMDP2012.pdf
About the Organizations
Boston Common Asset Management, LLC (http://www.bostoncommonasset.com) is an investment manager and a leader in global sustainability initiatives, specializing in long-only International equity, U.S. equity, and U.S. balanced strategies. We are an independent, employee-owned firm and as of June 30, 2012, managed over $1.6 billion, including sub-advised assets.
Calvert Investments (http://www.calvert.com) offers equity, bond, cash, and asset allocation strategies, many of which feature integrated environmental, social, and governance research. Calvert’s disciplined approach to money management goes beyond traditional factors to discover investment opportunities with greater long-term potential.
The United Nations-backed Principles for Responsible Investment (PRI) Initiative (http://www.unpri.org) is a network of international investors working together to put the six Principles for Responsible Investment into practice. The Principles were devised by the investment community. They reflect the view that environmental, social and corporate governance (ESG) issues can affect the performance of investment portfolios and therefore must be given appropriate consideration by investors if they are to fulfill their fiduciary (or equivalent) duty. The Principles provide a voluntary framework by which all investors can incorporate ESG issues into their decision-making and ownership practices and so better align their objectives with those of society at large.
US SIF: The Forum for Sustainable and Responsible Investment (http://www.ussif.org), is the U.S. membership association for professionals, firms, institutions and organizations engaged in sustainable and responsible investing. US SIF and its members advance investment practices that consider environmental, social and corporate governance criteria to generate long-term competitive financial returns and positive societal impact.
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Calvert, a leader in sustainable and responsible investing, headquartered in suburban Washington, D.C., has, since our founding in 1976, set industry standards for asset management excellence - in both the way we select companies for our portfolios and how we serve our clients' interests. Our investment approach emphasizes rigorous fundamental research that goes beyond traditional measures to uncover companies with long-term value. Through proven investment management, attentive customer service, an innovative family of investment products, and strong marketing capabilities, Calvert serves individual and institutional investors nationwide as well as professional financial advisors
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