Socially responsible investment : a global revolution / Russell Sparkes.

Format:

Book

Author/Creator:

Sparkes, Russell.

Series:

UKSIP series

Language:

English

Subjects (All):

Investments--Moral and ethical aspects.

Investments.

Physical Description:

xxii, 399 pages : illustrations ; 24 cm.

Place of Publication:

Chichester, England ; Hoboken, NJ : J. Wiley, [2002]

Summary:

Over the past decade, socially responsible investment (SRI) has changed from being a niche market to become a core consideration for mainstream investors. As such, pension fund advisers, trustees of charitable foundations and other investment professionals want to understand this new phenomenon. Up to now they have lacked any reference book to teach them what they need to know about SRI. This gap is now filled by the publication of Socially Responsible Investment: A Global Revolution, the first book on SRI specifically written for investment professionals and their clients. The book will also help business executives and business schools looking at better corporate governance and business ethics. Socially Responsible Investment describes how SRI has moved from fringe to mainstream on both sides of the Atlantic, and its current explosive growth rate in Asia and Europe.

Contents:

Part I Exploring Socially Responsible Investment 1

1 Socially Responsible Investment Comes of Age 3

A historic date 4

The UK SRI Pensions Regulations 5

The road to regulation 7

The pressures for change 13

Political recognition of public interest in SRI 17

2 What Is Socially Responsible Investment? 21

A definition of socially responsible investment 22

Is there more to SRI than screening? 27

The role of shareholder activism 29

Advocacy contrasted with activism 35

A theoretical justification for SRI 40

3 From the Beginning 45

A precursor 46

American beginnings 48

South Africa: a defining issue 52

Growing environmental concerns 58

Ethical consumerism 63

Fears over globalisation 65

4 Profiling the Investors 69

Identifying the issues 70

Profiling the investors 76

How important is financial return? 81

5 Screening in Practice 89

Screening in practice 89

Calvert Social Investment Fund 90

Friends Provident Stewardship 95

Citizens Funds 104

Standard Life Ethical Funds 109

Part II Issues for Institutional Investors 117

6 From Environmental Risks... 119

Why the environment is fundamental 119

The investing public and the environment 120

Nuclear power 121

Ozone-depleting chemicals 124

Water pollution 125

Hazardous chemicals 125

Tropical hardwoods 127

Smog and acid rain 130

Biodiversity 131

Genetically modified foods 134

Environmental liability 137

7 ...To Sustainable Development 145

An integrated approach to the environment 145

The case for sustainability 146

Evaluating the threat of climate change 150

Rio, Kyoto and beyond 154

The rising cost of natural disasters 157

New markets for renewables 160

Wind power 162

Solar power 164

Fuel cells 165

The Rio Resolution 1992 167

Emissions trading 168

Investment vehicles 169

Environmental management and accounting 171

The Global Reporting Initiative 172

8 Human Rights 177

The need for SRI performance metrics 177

The UN Declaration of Human Rights 178

Oppressive regimes 180

Burma 183

Sudan 187

China 192

Human rights at work 193

Human rights: verification and analysis 200

9 Corporate Social Responsibility 209

Growing expectations 209

The history of corporate governance 211

Corporate governance in the UK 213

Corporate governance in the US 219

Corporate governance in Asia and Europe 226

The link between corporate governance and SRI 230

10 Investment Returns 241

Why investment returns are crucial 241

The difficulties of back-testing 243

Analysis using restricted indices 244

SRI unit trusts in practice 248

Institutional SRI investment 254

The need for deeper analysis 266

Investing in smaller companies 267

Green investing 268

Establishing a theoretical framework 270

Part III A Global Revolution 277

11 Information Services 279

The need for SRI research 279

The Council on Economic Priorities 280

The Ethical Investment Research Service 282

Kinder, Lydenberg and Domini 284

Innovest 287

Pensions and Investment Consultants 291

Two global SRI networks 293

SRI market indices 295

The Domini Social Index 296

The Dow Jones Sustainability Index 300

FTSE4Good 305

12 Alternative Approaches: Canada and Australia 311

Canadian beginnings 311

SRI mutual funds in Canada 315

The Australian approach to SRI 323

Growth of SRI unit trusts 326

Socially responsible pensions 330

13 Into the Mainstream 339

The UK: great changes after July 1998 340

Pension funds: growth in SRI activity 344

A quantum leap in UK SRI assets 347

The question of engagement 350

The US: a major market for SRI 354

Shareholder activism in the US 359

14 A Global Revolution 367

Japan: a new market for SRI 367

SRI in the Pacific 371

SRI in continental Europe 372

Scandinavian pioneers 375

Other European markets 380

Socially responsible pensions 384

The SRI universe in Europe 387

The global revolution begins 388.

Notes:

Includes bibliographical references and index.

ISBN:

0471499536

OCLC:

50054906