Investors managing $3trn back participation in the UN Global Compact

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A coalition of 34 institutional investors managing approximately $3.3trn in assets is encouraging 1,900 companies located in 44 countries to consider joining the United Nations Global Compact as part of the “PRI for Rio” collaborative engagement.

Enhancing corporate sustainability was high on the agenda of the 193 Member States that attended the UN’s Rio+20 conference in Rio de Janeiro, Brazil in June 2012.

Following that, a group of PRI signatories launched the UN Global Compact to work for increased focus on sustainability among companies globally, calling it “PRI for Rio”.

The investors are all signatories to the UN-supported Principles for Responsible Investment (PRI). They are based in Australia, Europe, North and South America and include BNP Paribas Investment Partners, Boston Common Asset Management, Calvert Investments, Highclere International Investors, PGGM, Scottish Widows Investment Partnership, Sparinvest Holdings SE, Threadneedle Investments, Trillium Asset Management and Walden Asset Management.

Globally, investors are increasingly evaluating companies’ ability to address environmental, social and governance (ESG) opportunities and challenges. A company’s ability to identify and manage such issues has become a significant factor in shaping its financial performance. Participation indicates a company is alert to the business implications of ESG issues.

Around 7,000 corporate signatories in 135 countries have committed to the implementation, disclosure and promotion of the 10 Global Compact principles. Signing up is an important proof of companies’ commitment to meet and enact the values the UN Global Compact represents.

Christian Dargnat, global CIO at BNP Paribas Investment Partners said the UN Global Compact is the shared framework on ESG standards for all corporate holdings. “We thus welcome this PRI engagement as a force for expanding these standards across companies.”

Bennett Freeman, senior vice president of Sustainability Research and Policy at Calvert Investments, a UNGC participant and PRI signatory, said his firm regularly engages with companies and encourages them to join the Compact to further transparency and disclosure.

Ed Makin, CEO at Highclere International Investors added: “Becoming a member has made us think differently about the way we invest on behalf of our clients, excluding numerous companies from our portfolios that have little regard for environmental, social or governance issues.”

Per Noesgaard, group CEO, Sparinvest Holdings SE, said: “Company transparency and disclosure of ESG risks are vital for our ability to assess these in our investment decision-making process. Companies signing up to the UN Global Compact display a commitment to disclosing and addressing ESG risks in their business, which is definitely in our interest as a long-term asset manager.”

Pirelli has been an active member of the UN Global Compact since 2004. “By adopting its principles as the foundation for our environmental, social and governance policies and making these the framework within which we develop our business strategy, we have found that we are making a profound, positive impact not only on all our stakeholders, but on our bottom line as well.” Marco Tronchetti Provera, chairman and CEO.

The companies invited to join the UN Global Compact were selected on their inclusion in the FTSE All World Index. A sample of the companies are highlighted below.

 

Australia Mediobanca Enka Insaat
Aristocrat Leisure Japan Eregli Demir Ve Celik
Asciano Aeon Mall Co ltd Tupras
Australand Property Group Brother Industries Turk Telekomunikasyon AS
Bank of Queensland Ltd. Circle K Sunkus UK
Bluescope Steel Dai-ichi Life Insurance Ashmore Group
Envestra Dena Co Ltd Associated British Foods
Gunns H2O Retailing Daily Mail & General Trust
Leighton Holdings Hamamatsu Photo Prudential
Tabcorp Holdings IHI Rentokil Initial
Ten Network Holdings Juroku Bank Rexam
Brazil Kobe Steel Sainsbury
Ambev PN Kokuyo Shire
SID Nacional ON Lawson Tate & Lyle
Telemar Norte Leste SA Mazda Motor TUI Travel
Ultrapar Participacoes S.A. Mochida Pharmaceutical Tullow Oil
WEG Ord Nissan Chemical Industries Wolseley
Companhia de Gas de Sao Paulo Pfd. Nitto Denko Corp USA
Canada NS Solutions Abbott Laboratories
Alimentation Couche-Tard NTT Urban Development Aetna
Canadian Utilities CL A Ogaki Kyoritsu Bank Thailand
Manulife Financial Park24 Allstate Corp
Penn West Petroleum Sankyo Co Ltd Gunma Alpha Natural Resources
Research In Motion Shima Seiki Manufacturing American Water Works Company
Sun Life Financial Shinsei Bank Amgen Corp
Valeant Pharmaceuticals International Showa Denko Anadarko Petroleum
China Showa Shell Sekiyu Analog Devices
BYD Sony Financial Holdings Inc. Biogen IDEC
Agricultural Bank of China Sumitomo Metal Mng Boston Property
Beijing North Star Takara Holdings Boston Scientific Corp
China Agri-Industries Holdings THK Church & Dwight
China Minsheng Banking Tokyo Broadcasting System Holdings City National
China Railway Group Toppan Forms Cognizant Tech Solutions
China Shipping Container Lines Toyobo Co Cons Edison Holding
China Southern Airlines Company Limited West Japan Railway Crown Castle Intl Corp
Double Coin Holdings Korea Danaher Corp
PICC Property & Casualty Hanwha Deere & Co
Shanghai Friendship Honam Petrochemical Dollar Tree
Shanghai Wai Gaoqiao Free-Trade Zone Development KB Financial Group Dover Corp
Tsingtao Brewery LG Corp EOG Resources
Egypt Lotte Confectionery Equifax
Egypt Kuwait Holding Co Malaysia F5 Networks Inc
Egyptian Iron & Steel Parkson Holdings Foster Wheeler
France Mexico Genuine Parts
Dassault Systemes Inmuebles Carso SAB de CV Home Depot
Groupe Eurotunnel Netherlands IntercontinentalExchange
Klepierre Boskalis Westminster International Business Machines Corporation (IBM)
Germany New Zealand Iron Mountain
Beiersdorf Sky City Entertainment Group J M Smucker
Brenntag AG Peru JPMorgan Chase & Co
Porsche Automobile Holding Credicorp Kohl’s Corp
Suedzucker Poland Lam Research
United Internet Getin Service Provider SA Liberty Media
Hong Kong Globe Trade Centre Liberty Property Trust
Bosideng International Holdings PKO Bank Polski Loew’s
China Zhongwang Holdings Ltd Russia Macerich
Dah Sing RusHydro (Federal Hydrogenerating Co) MasterCard
Dah Sing Banking Group TATNEFT McDermott International
Foxconn International Holdings Singapore Metlife
Hidili Industry International Development CapitaMalls Asia MGM Resorts International
Hong Kong & China Gas Guocoland Motorola Mobility Holdings
Hutchinson Harbour Ring Sia Engr O Reilly Auto
Jardine Matheson Singapore Post Ltd Old Republic Intl
Jardine Strategic Wheelock Properties Omnicom Group
Kowloon Dev Yangzijiang Shipbuilding Holdings Petsmart
Orient Overseas International South Africa PG & E Corp.
Sands China Clicks Group Ltd Pharmasset
India Discovery Holdings Plum Creek Timber Co
Adani Enterprises Imperial Holdings PPG Industries
Ashok Leyland MMI Holdings Procter & Gamble
Bajaj Auto Limited Reunert Progressive Corp
Canara Bank RMB Holdings QEP Resources
Container Corporation of India Steinhoff International Holdings Qualcomm
Glenmark Pharmaceuticals Sweden Ralph Lauren Corp
Grasim Industries Husqvarna AB-B Rovi Corporation
Jaiprakash Associates Limited Industrivarden AB-A Rowan Companies
Oriental Bank of Commerce Modern Times Group Safeway Inc
Punj Lloyd Switzerland SAIC
United Spirits Aryzta Sprint Nextel
Indonesia Nobel Biocare Holding Starwood Hotels & Resorts
Bank Central Asia Richemont A Toll Brothers
Tambang Batubara Bukit Asam Sonova Holding AG Ultra Petroleum
Israel Swiss Prime Site Union Pacific Corp
Jerusalem Economy Synthes United States Steel Corp
Menorah Mivtachim Holdings Ltd Thailand Verizon Communications
Migdal Insurance & Financial Holdings Ltd. Siam City Cement Viacom
Ormat Industries Turkey Walgreen
Italy Arcelik Yahoo
Finmeccanica BIM Birlesik Magazalar  

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