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EIRIS & responsible investment. Peter Webster EIRIS Executive Director. Back-ground on EIRIS. A collaborative project with UK roots Independent research on 3,000 companies Multiple strategies for diverse clients 25 years of responsible investment In South Africa for JSE SRI Index launch.
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EIRIS & responsible investment Peter Webster EIRIS Executive Director
Back-ground on EIRIS • A collaborative project with UK roots • Independent research on 3,000 companies • Multiple strategies for diverse clients • 25 years of responsible investment • In South Africa for JSE SRI Index launch
Climate Change & PRI • Investor interest in fixing Climate Change • More can be done than is being done • UN PRI: global investor coalition • Many PRI promises being made • Need for straightforward practical steps
How the JSE index was researched • Longer term corporate sustainability focus • This year wider coverage • We start with public information • Then opportunity to fill in the blanks • Widespread dialogue with companies • Creates a data iceberg below the surface
Observations on state of the art • Some peer groups much stronger than others • Medium impact environment: a bit weak • BEE & HIV: good start (but not there yet) • Social generally: reporting relatively weak • Governance: Board practice lags • Climate Change: not yet strong
Building on what now exists • Data iceberg can driver multiple uses • Evolution of the criteria • Engagement opportunities • Adding to financial understanding • Potential for new financial products
Lessons from the crunch • Interconnected and fragile connections • ESG issues can be significant • Need to act on early warnings in future • What should the finance sector do? • How can they set out and act on that? • Idea of Market Risk Forecasts • JSE SRI Index: a practical contribution
Conclusions • Long term corporate sustainability focus • Index drives corporate responsibility • Many potential new directions • Wide range of new potential uses • Finance sector can do more • JSE SRI Index is both an example and an opportunity for the finance sector