where checking accounts rebuild communities
Back to homepageInstitutional ReportsSRI Financial Professionals DirectoryToolsNewsSRI Performance and TrendsAbout Us   

April 30, 2012
UKSIF Endorses Key Investor Initiatives for Rio+20
    by Robert Kropp

The Natural Capital Declaration commits financial institutions to integrating environmental considerations into their products and services, while the Corporate Sustainability Reporting Coalition seeks a convention on corporate reporting.

The recent endorsement by UK Sustainable Investment and Finance Association (UKSIF) of two issues highlights the importance to sustainable investors of the upcoming Rio+20 conference.

The conference will begin on June 20th in Rio de Janeiro, Brazil.

Signatories to the Natural Capital Declaration are financial institutions that commit to working with governments to develop long-term policy frameworks for the internalization of environmental costs. "Financial institutions have considerable indirect ecological footprints through their customers and directly through their purchasing decisions," the initiative states. "These impacts can lead to material financial risks, but also to relevant business opportunities."

Signatories demonstrate their "commitment to the eventual integration of Natural Capital considerations into private sector reporting, accounting and decision making, with appropriate and adequate standardization of measurement and disclosure of Natural Capital use by the private sector."

The initiative defines Natural Capital as the natural assets of the Earth and the systems that derive from them.

US-based signatories thus far include Pax World Management. CEO Joe Keefe stated, "Over the next decades, it will be necessary for market capitalism to undergo a Sustainability Revolution equal in significance to the Industrial Revolution that ushered in the modern period. For this to happen, our financial system must dramatically change, and I hope the Natural Capital Declaration can be a catalyst for such change."

The second initiative endorsed by UKSIF is the Corporate Sustainability Reporting Coalition of Institutional Investors (CSRC), convened by Aviva. CSRC states, "Progressive companies understand that long-term value is enhanced by embedding long-term sustainability considerations into their business strategy and by fully disclosing their progress to investors."

Stating further that "the world now needs to move from the innovative and pioneering approach of a minority of companies to a true global mainstream practice for all companies," CSRC calls on UN member states to develop a convention at Rio+20 that would make corporate sustainability reporting a "report or explain" requirement for all companies.

Penny Shepherd, Chief Executive of UKSIF, stated, "Rio+20 offers an important opportunity to advance the concerted action needed by financial institutions, business and governments to support the transition to a sustainable resilient economy."


| Reports | SRI Financial Professionals Directory | Tools | News | SRI Performance and Trends | About Us | Contact
© SRI World Group, Inc. - All rights reserved
Terms of use - Privacy Policy - OneReportTM Network