Market Intelligence

Context

Despite the existing sources of information and studies that have been conducted about SRI in France (Novethic, ISR Info), the experience gained from the 2003 market study carried out by Eurosif on SRI across Europe made it clear that there is a lack of evidence about discretionary and institutional investment. In addition, no real distinction has been made between the institutional investor and the private investor concerning mutual funds. Our market intelligence program will focus on institutional SRI funds.

Objectives

The Standing Committee has three objectives:

• Maintain a database for SRI funds in France,
• Be able to respond to the requests for information from Eurosif for the next European study,
• Study the market to measure the discretionary SRI mandates, the development and evolution of the offer (employee savings plan, retirement, life-insurance, etc.) and new products (bonds, monetary, etc.)

Deliverable

Market study on “SRI Institutional Funds in France” (End of 2006)

Legislative Intelligence

Context

The aim of the French Social Investment Forum is to promote the concept and good practices of responsible investment, and in particular to contribute to elaborating public policy about or concerning responsible investment. [From article 2 of the statutes]

Our main objective is to lobby political decision-makers so that all measures are taken to favour the development of SRI practices in legislative texts.

We have already been successful with the generalisation of the employee savings plan, the law on French Retirement Reserve Funds and the ‘New Economic Regulations’ law (see French Social Investment Forum Activities)

Objectives

The Standing Committee has three objectives:

• Identify the law proposals liable to directly or indirectly concern SRI practices early enough in order to make the public authorities aware of our concerns,
• Take a clear stand concerning these projects,
• Provide legislative intelligence at the European level for SRI and CSR.

Deliverables

1. French SIF’s position (based on parliament current events),
2. FIR Publication on European environmental legislation in favour of SRI.

Thematic Intelligence

Context

In order to stress the importance of our actions for public decision-makers, we deemed it necessary to be able to back up our positions based on concrete studies. The aim of the Standing Committee is to provide transversal intelligence, integrating the diversity of analysts and actors, for three or four major themes based on sustainable development for actors in SRI.

The Standing Committee’s work relies on four Project Groups based on the four pillars of social responsible investment: Environmental Intelligence, Social Intelligence, Governance Intelligence, Community Intelligence.

For 2004, we are concentrating on the “Social Intelligence” section.

Objectives

This intelligence is purely dedicated to SRI. It aims to reveal best practices concerning follow-up of extra-financial risks, dialogue with shareholders, measure of impact on financial results, etc.

Deliverable

FIR Publication

Transparency Guidelines

Context

In July 2003, Eurosif inaugurated a pilot project for the first Transparency Guidelines for retail SRI funds. The first financial corporations to test the guidelines were Friends Provident / ISIS Stewardship Funds, Henderson's European Fund and Jupiter Green Funds. The outcome of this pilot project will be known in June 2004.

As part of their 2003-2004 work programme Eurosif has decided to elaborate the Transparency Guidelines project to include the institutional sector.

Objectives

The Standing Committee has two objectives:

• Have a panel, representative of SRI financial corporations, validate the relevance of the Transparency Guidelines for retail SRI funds.
• Contribute to the elaboration of the Transparency Guidelines for Institutional SRI funds.

Deliverables

1. Contribution to the elaboration of the final version of the Transparency Guidelines for retail SRI funds (June 2004),
2. Contribution to the elaboration of the final version of the Transparency Guidelines for institutional SRI funds (June 2004).

FAIRE (Annual Forum for European Responsible Investment – Forum Annuel de l’Investissement Responsable en Europe)

Context

The strong interest shown by the participants during the first three editions of our “road show”, unique in Europe and in the world, has led us to continue this event for 2006.

Objectives

Feedback from the FAIRE 2003, 2004 and 2005 has convinced us to position the FAIRE 2006 in the following manner:

• Professional : reserved for financial professionals, SRI specialists, and all investing corporations or representatives for investing corporations.
• Open : to all investors or professionals without any conditions regarding commercial relationships.
• Centred around companies : the conferences or thematic interventions must be kept to a minimum in order not to disturb the company presentations.
• Operational : the company presentations must be sufficiently long and elaborate as to allow for an analysis by fundamental financial and extra-financial company experts.
• Interactive : an open dialogue between the companies and the investors via questions from the audience as well as “one-on-one” discussions.
• Well-documented : companies send the documents necessary for their presentations prior to the conference.
• Guided : in order to guarantee a certain level of coherency for the presentations, an expert ad hoc committee will offer companies recommendations for their presentations and suggest particular themes to address.

Deliverable

FAIRE 2006 (June 22nd & 23rd 2006).

SRI Methodology

Context

Despite the spectacular progress that has been made and the constant increase in the level of professionalism, the evaluation of social and environmental performances in companies is approached in a variety of ways; which are not necessarily always compatible.

The objective of the Standing Committee is not necessarily to achieve a unique approach to evaluate the extra-financial performance of companies; but it is to pool together a certain number of practices resulting in, if need be, a common-core methodology.

The airline sector will be used as a base for this work programme in 2004.

Objectives

The Standing Committee has three objectives:

• Draw up an inventory of practices and indicators used to help in the evaluation and selection of values,
• Establish common and contrasting points,
• Research the best examples of evaluation practices and operational indicators.

Deliverable

Final synthesis, for internal use only in the beginning, on the theme studied throughout the year (Stakes, indicators, approaches, methods, procedures, access to information, company contacts and stakeholders).

Shareholder engagement

Context

Shareholder activism is one of the three pillars of SRI, with the use of extra-financial criteria for the construction of portfolios and solidarity investment titles.

This engagement can take several forms:

• Constructive dialogue with company management in order to help the company evolve towards socially responsible management practices,
• Voting resolutions made during general assembly meetings about themes linked to sustainable development,
• Pressure from the press.

In certain European countries there is a strong tendency, in the financial SRI community, not to use shareholder engagement as the only SRI practice.

Objectives

The Standing Committee has decided to identify what could be the methods used for a French approach to a typically Anglo-Saxon practice.

Deliverable

FIR Publication