Novethic: Long-Term Risk Management, the Primary Driver for ESG Issues amongst Asset Owners

PARIS, Nov 27, 2009 (BUSINESS WIRE) --
BNPZY | Quote | Chart | News | PowerRating -- Today Novethic, with the support of BNP Paribas Investment Partners,
releases the results of its survey "Asset owners as active shareholders:
Attitude towards and motivation behind ESG policies." For this second
edition of the survey, over sixty French and UK investors were queried
on their perception of their responsibility as shareholders on corporate
ESG policies. Results attest to a clearer understanding of the
importance of ESG factors.

Reduce long-term risks by integrating an ESG approach

Investors seem convinced that ESG issues must be fully integrated into
long-term management because they contribute to reducing risk and can
improve financial performance. This opinion is shared by all UK
respondents and 94% of French respondents. Despite this common
viewpoint, cultural differences remain, especially in terms of their
consideration for each of the ESG issues. 65% of French investors look
at all three issues as a whole, as do 45% of UK investors. However,
while none of the UK respondents consider the social aspect the most
important, it is the main focus of 19% of French respondents. They are
also divided on environmental issues, which are stressed by 10% of UK
investors but only 3% of the French. Lastly, only 13% of those surveyed
in France highlight the importance of governance, versus 45% of those in
the United Kingdom.

French investors more active on social issues

Asset owners certainly understand the appeal of ESG criteria, but their
willingness to influence corporate ESG strategies has declined sharply
since 2008. 58% of French respondents stated that they are willing to do
so (as against 71% the previous year) as are 48% of UK respondents
(versus 72% in 2008). The two countries do not share the same priorities
in terms of shareholder activism. Again, the majority of French
respondents (53%) believe that they must act in all three areas while
nearly half of UK respondents focus on governance measures. However, no
UK investors feel it is their role to become involved in companies'
social policies. This trend grows stronger when it comes to redundancy
plans, with two-thirds of French asset owners stating that they would
demand an explanation from the company, compared with only one-third of
the British.

Unanimous on climate change and executive compensation

The majority of the investors surveyed have understood that climate
change will have a global economic impact on all companies, although
this applies to a higher proportion of UK respondents (63% versus 52%).
Both French and UK asset owners expect companies to define an energy
consumption policy, set targets to lower greenhouse gas emissions and
provide standardised environmental reporting. Another point of agreement
is executive compensation, which 75% of the investors surveyed believe
they should supervise. They feel that they are in a better position to
do so as shareholders, as opposed to public authorities or the companies
themselves. This opinion is shared by nearly all UK respondents and 60%
of French respondents.

To view the survey, go to: http://www.novethic.com/novethic/v3_uk/upload/ESG_Survey_2009.pdf

About Novethic: Novethic, a part of Caisse des Depots, is the
leading research center in France on Corporate Social Responsibility
(CSR) and Socially Responsible Investments (SRI) as well as a
sustainable expert media. Novethic provides resources and mobilises
business leaders, investors and NGOs and other stakeholders on key
topics related to CSR and SRI. As the only source of analytical and
statistical information on the French SRI market, the research center
conducts thematic studies, analyses product trends and assesses the
management processes of nearly 200 SRI funds. Visit www.novethic.com

With the support of BNP Paribas Investment Partners

BNP Paribas Investment Partners is a benchmark European player that has
very quickly established itself as a leader in Sustainable and
Responsible Investment. The entity's dedicated team offers institutional
clients independent advice and, through its network of partners, boasts
a full range of fundamental equity and indexed investment, environmental
and active multi-management investing solutions. www.bnpparibas-ip.com

SOURCE: Novethic

Novethic 
Press contact: 
Celia Juere 
celia.juere@novethic.fr 
+33 (0)1 58 50 98 23

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