Submitted by E.M. Williams on Wed, 04/02/2015 - 18:52
28 January 2015 – Senior sponsors joined their working group representatives at the Zurich Development Center, Zurich, Switzerland to be updated on the progress of the workstreams and to provide a strategic steer.
The meeting was hosted by the Zurich Insurance Company, and was honoured to welcome the CIO of Zurich Insurance Company, the CEOs of Natixis AM, PensionDenmark, Nordea Life and Pensions, the Chief Responsible Investment Officer of Aviva, and the President and CFO of Loomis, Sayles & Company, as well as working group delegates.
Following the launch of the ILG’s foundation report The Value of Responsible Investment, the group embarked on a range of action-oriented workstreams to build consensus on the risks of business as usual, and the purposes and mechanisms of responsible investment. Ongoing workstreams include (1) a framework for reporting the social and environmental impact of investment, (2) a model investment mandate to encourage long-termism, (3) a communications tool to highlight the importance of integrating social and environmental issues in investment decisions as a function of fiduciary responsibility, (4) an analytical tool to assess the impact on portfolio value of future carbon regulation, and (5) a research study examining the physical impacts of climate change on portfolio value.
The group’s discussions focused on the steps needed to operationalise the workstreams, including unlocking demand for ESG integration. It was encouraged by the senior sponsors to continue its efforts to find improved market practices, backstopped by robust research. The meeting concluded with a dinner hosted by Cecilia Reyes, CIO of Zurich Insurance Company, for senior sponsors to take stock of the ILG’s progress in light of its mission to shift the investment chain towards responsible, long-term value creation.
With a strong mandate to continue developing the workstreams, the ILG will now emerge from its conceptual phase into implementation. Key deliverables are planned for this summer, including an impact framework and a model mandate for long-termism. The communication tool on fiduciary duty will be soon made available for members to use in engagements with key stakeholders in the investment industry, and early results from its research collaboration with Cambridge are expected in April 2015.
