Promoting Corporate Environmental, Social and Governance (ESG) Policies with National Governments, International Organizations and Institutional Investors

Michael J. Kane

Revised January 5, 2009

kane.michael@epa.gov

Table of Contents

Introduction

- Surveys and Trends

- National Finance Development Agencies Promoting ESG Performance

- National Securities and Exchange Agencies Promoting ESG Performance

- National Stock Exchanges Promoting ESG Performance

- National Stock Exchange Agencies Promoting ESG Performance with Dedicated Exchanges

- National Agencies Promoting ESG Performance

- National Foreign Affairs, Economics and Trade Agencies Promoting ESG Policies

- National and other Governmental Agency Pension Funds Promoting ESG Performance

- National Parliamentary Organizations Addressing ESG Policies

- Multilateral Development Banks Promoting ESG Performance

- International Organizations Promoting ESG Performance

- Shareholder and Investor Initiatives Promoting ESG Performance

- Private Exchanges Promoting ESG Performance with Specific Markets

- International Financial Organizations

- Professional Organizations

- International Non-Governmental and Consulting Organizations Promoting ESG Performance

- Global Ratings Agencies promoting ESG policies

- Key International Organizations for Future Partnerships

- Resources for Research

*******

Introduction

The purpose of this list is to provide examples of environmental, social and governance (ESG) policies and programs promoted by national governments, international organizations, institutional investors, and related organizations worldwide.

- McKinsey report: most CEOs participating in UN Global Compact include ESG in core strategies (July 2007)

- http://www.unglobalcompact.org/NewsAndEvents/news_archives/2007_07_05d.html

- SocialFunds.com article re: global ESG disclosure and performance (November 2007)

- http://www.socialfunds.com/news/article.cgi/2425.html

- SocialFunds.com article re: RiskMetrics survey of ESG disclosure and performance (November 2007)

- http://www.socialfunds.com/news/article.cgi/2429.html

- IFC and Mercer launch global survey of ESG activities in emerging markets (November 2007)

- http://www.csrwire.com/News/10266.html

- Responsible Investment Metrics releases Responsible Investment 2008: an analysis and measurement of the competencies and practices of leading asset managers (May 2008)

- http://www.rimetrics.com/

- http://www.cfoasia.com/archives/200807-12.htm

- CSR Asia releases CSR Asia Business Barometer: The State of CSR Disclosure 2008 (October 2008)

- http://csr-asia.com/research.php

- KPMG International Survey of Corporate Responsibility Reporting 2008 (October 2008)

- http://www.kpmg.com/Global/IssuesAndInsights/ArticlesAndPublications/Pages/Sustainability-corporate-responsibility-reporting-2008.aspx

- 30 national agencies and IFC sign agreement on ESG due diligence (October 2007)

- http://www.ifc.org/ifcext/economics.nsf/Content/CG_DFIs_Initiative

- US SEC releases ESG review of Fortune 500 corporate reporting (undated; circa 2003)

- http://www.sec.gov/divisions/corpfin/fortune500rep.htm


- US GAO report Environmental Disclosure: SEC Should Explore Ways to Improve Tracking and Transparency of Information (July 2004)

- http://www.gao.gov/docdblite/summary.php?rptno=GAO‑04‑808&accno=A10929

- UK Companies Act expands directors’ duties and environmental reporting (2006)

- http://www.opsi.gov.uk/acts/acts2006/20060046.htm

- http://www.trucost.com/published-research/39/companies-act-environmental-reporting-requirements

- UK Accounts Modernisation Directive requires environmental reporting (2006)

- http://www.defra.gov.uk/ENVIRONMENT/business/envrp/index.htm

- http://www.frc.org.uk/

- UK Financial Services Authority’s international activities

- http://www.fsa.gov.uk/Pages/About/What/International/index.shtml

- Philippines Board of Investment requires CSR corporate reporting under 2007 Investment Priorities Plan (August 2007)

- http://www.boi.gov.ph/

- go to Incentives, then to Investment Priorities Plan

- Indonesia adopts Article 74 to require social and environmental responsibility programs for companies related to natural resources (July 2007)

- http://www.ibl.or.id/en/ibl/html/gateway.php?sid=news&mode=read&id=77

- US SEC approves rule to accept International Financial Reporting Standards without reconciliation with GAAP (November 15, 2007)

- http://www.sec.gov/spotlight/ifrsroadmap.htm

- http://www.sec.gov/about/offices/oia/oia_multilateral.htm

- US SEC allows shareholders to file petition with Fidelity Mutual Fund re: human rights and genocide (January 2008)

- http://investorsagainstgenocide.googlepages.com/sec

- http://www.sec.gov/divisions/investment/noaction/2008/fidelityfunds012208‑14a.htm

- Fidelity response: http://www.csrwire.com/News/11188.html

- China Securities Regulatory Commission releases document requiring environmental assessment with new public securities listings (February 2008)

- http://www.csrc.gov.cn/

- http://www.sec.gov/news/press/2008/2008-119.htm

- http://www.sec.gov/news/press/2008/2008-158.htm

- http://www.sec.gov/news/press/2008/2008-184.htm

- Taiwan Financial Supervisory Commission announces plans to require disclosure of CSR/ESG information for listed companies (December 2008)

- http://www.fscey.gov.tw/mp.asp?mp=5

(no specific link yet for announcement or for CSR program)


- NYSE Euronext membership with the EU’s CSR Europe (Euronext: since 2001)

- http://www.euronext.com/editorial/wide/editorial-1962-EN.html

- NYSE Euronext Strategic Partnerships with other Exchanges

- http://www.nyse.com/about/newsevents/1179916337100.html

- report to NYSE: NYSE Corporate Accountability and Listing Standards (June 2002)

- pdf: http://www.iasplus.com/resource/nysegovf.pdf

- Tokyo Stock Exchange releases Charter of Corporate Behavior (2004)

- http://www.tse.or.jp/english/about/charter/index.html

- Shenzhen Stock Exchange releases Social Responsibility Instructions for Listed Companies (September 2006)

- http://www.szse.cn/main/en/rulseandregulations/sserules/

- Shanghai Stock Exchange releases Report on Corporate Governance (November 2007)

- http://www.sse.com.cn/sseportal/en_us/ps/home.shtml

- National Stock Exchange of India collaboration with CRISIL on ESG Index (2007)

- http://www.csrwire.com/News/10867.html

- http://www.nse‑india.com/

- http://www.crisil.com/

- Hong Kong Exchange signs Corporate Responsibility Charter and Carbon Reduction Charter (December 2008)

- http://www.hkex.com.hk/news/hkexnews/0812193news.htm

- http://vcr.csrwire.com/node/12693

- Stock Exchange of Thailand establishes Corporate Social Responsibility Fund to encourage listed companies to promote CSR activities (December 2008)

- http://www.set.or.th/en/index.html

- Tokyo Stock Exchange to launch Environmental Stock Index in 2009 (announced mid-2008)

- http://www.meti.go.jp/english/index.html

- Brazil’s Bovespa

- http://www.bovespa.com.br/indexi.asp

- Israel’s Tel Aviv Stock Exchange with the Maala SRI Index (since 2006)

- http://www.tase.co.il/tase/

- South Africa’s Johannesburg Exchange (since 2004)

- http://www.jse.co.za/sri/

- Malaysia’s Bursa Malaysia: CSR Framework for Malaysian PLCs (since 2006)

- http://www.klse.com.my/website/bm/about_us/the_organisation/csr/

- US OSHA’s Voluntary Protection Programs (since 1982)

- http://www.osha.gov/dcsp/vpp/

- US Department of Commerce’s Baldrige Award (since 1987)

- http://baldrige.nist.gov/

- http://www.khazanah.com.my/

- http://my-icrm.org/

- US Millennium Challenge Corporation’s Indicators for Performance includes ESG indicators (since 2004)

- http://www.mcc.gov/selection/indicators/

- US EPA’s Corporate Leaders Program (since 2004)

- http://www.epa.gov/performancetrack/corporateleaders/index.htm


- US Food and Drug Administration implements 2007 law authorizing priority review process for drugs to treat neglected diseases (September 2007)

- http://blogs.cgdev.org/globalhealth/2007/10/fda_priority_review.php

- UK’s Department for Environment, Food and Rural Affairs report Environmental Disclosures: The Second Major Review of Environmental Reporting in the Annual Report & Accounts of the FTSE All-Share (2007)

- http://www.trucost.com/pressreleases/EA‑disclosures.html

- Canada’s National Round Table on the Environment and the Economy report Capital Markets and Sustainability: Investing in a Sustainable Future (February 2007)

- http://www.nrtee‑trnee.ca/eng/publications/capital‑markets/index‑capital‑markets‑eng.htm

- http://www.nrtee‑trnee.ca/eng/media/media‑releases/20070212‑Capital‑Markets‑eng.htm

- Canada’s National Roundtables on CSR and the Extractive Industry; Advisory Group Report (March 2007)

- http://geo.international.gc.ca/cip-pic/current_discussions/csr-roundtables-en.aspx

- Australian Department of Treasury task force recommends ESG policy (June 2007)

- http://www.treasury.act.gov.au/

-pdf: http://www.treasury.act.gov.au/documents/ESG%20Review%20Report.pdf

- New Zealand’s Crown Company Monitoring Unit requires state-owned enterprises to follow CSR programs (based on 1986 law establishing state-owned enterprises)

- http://www.ccmau.govt.nz/csr.html

- Sweden’s Ministry of Enterprise, Energy and Communications requires all state-owned companies to follow new guidelines for public reporting (December 3, 2007)

- http://www.sweden.gov.se/sb/d/7329/a/93506

http://www.globalreporting.org/NewsEventsPress/PressResources/20071203PressReleaseSweden.htm

- China launches the Taida Environmental Index of 40 listed companies (January 2008)

- http://www.csr‑asia.com/index.php?p=11106

- China’s Assets Supervision and Administration Commission releases CSR guidelines for state-owned enterprises (Spring 2008)

- http://www.csr‑asia.com/index.php?p=11096

- US Secretary of State’s Annual Award for Corporate Excellence (since 1999)

- http://www.state.gov/e/eeb/ace/


- US Department of State establishes Office of International Labor and Corporate Social Responsibility, convenes their first Intergovernmental Forum at BSR Conference (Fall 2007)

- http://www.state.gov/g/drl/lbr/

- http://www.state.gov/r/pa/prs/ps/2007/oct/94123.htm

- the UK Foreign & Commonwealth Office updates its CSR program (since 1995)

- http://www.fco.gov.uk/resources/en/pdf/pdf16/fco_csr_strategy_papers

- Germany’s Perspectives for Germany – Our Strategies for Sustainable Development (2004; progress report in 2007)

- http://www.nachhaltigkeitsrat.de/en/home/

- Germany’s Commission of the German Corporate Governance Code (since 2001)

- http://www.corporate-governance-code.de/index-e.html

- Norway’s Ministry of Foreign Affairs releases its Oslo Agenda for Change (2007)

- http://www.csr-oslo.org/

- Austria’s Federal Ministry of Economics and Labour releases Trade Policy Doctrine with sustainable development and CSR discussions (April 2008)

http://www.bmwa.gv.at/BMWA/Schwerpunkte/Aussenwirtschaft/IntOffensivInvestition/oesterreichisches_aussenwirtschaftsleitbild.htm (English version soon)

- Denmark’s Ministry of Economics and Business Affairs releases Action Plan for Corporate Social Responsibility (May 2008)

- http://www.samfundsansvar.dk/sw42800.asp

- UK Government’s support for fiduciary responsibility that includes ESG matters (Fall 2008)

- http://www.responsible-investor.com/home/article/fiduciary/

- Norway’s Ethical Guidelines for the Government Pension Fund

- http://www.regjeringen.no/en/dep/fin.html?id=216

- Pension Fund link on left

- UK’s Environment Agency Pension Fund

- http://www.environment-agency.gov.uk/aboutus/233207/1707397/

- France’s Article 19 of the Autorite des Marches Financiers requires disclosure of social, environmental, and ethical matters, and whether a rating agency is used (2005)

- pdf: http://www.novethic.com/novethic/english/upload/SRI_Employee_Study.pdf

- Canada’s CPP Investment Board Responsible Investing Policies and Initiatives

- http://www.cppib.ca/Responsible_Investing/

- CalPERS Investment Policies

- http://www.calpers.ca.gov/index.jsp?bc=/investments/policies/home.xml

- Australia’s Regnan Ltd represents governmental and institutional funds totaling more than $50 billion

- http://www.regnan.com.au/

- the Pension Benefit Guaranty Corporation (US) establishes new policy for $55 billion investment (February 18, 2008)

- http://www.pbgc.gov/media/news-archive/news-releases/2008/pr08-19.html

- UK All-Party Parliamentary Group on Corporate Social Responsibility

- http://www.parliament.uk/

- UK All-Party Parliamentary Group on Socially Responsible Investment

- http://www.parliament.uk/

- Australian Parliamentary Joint Committee on Corporations and Financial Services

- http://www.aph.gov.au/Senate/committee/corporations_ctte/


- US Senate Subcommittee on Securities, Insurance and Investment: Hearing on Climate Risk Petition to the SEC (October 31, 2007)

- http://banking.senate.gov/

o Multilateral Development Banks Promoting ESG Performance

- the World Bank’s FIRST Initiative Program (ESG performance in emerging markets)

- http://firstinitiative.org/

o the Inter-American Development Bank and Innovest create the Opportunities for the Majority Index to encourage investment in Latin American and Caribbean companies with high environmental, social and governance performance (April 2008)

- http://www.csrwire.com/News/11633.html

- OECD environmental standards for export credit agencies (December 2003)

- http://www.oecd.org/document/56/0,3343,en_2649_201185_21688824_1_1_1_1,00.html

- European Union Modernization Directive Article 46 requires disclosure of non-financial information (2005)

- http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32003L0051:EN:HTML

- IFC chairs agreement with 30 national finance agencies (October 2007)

- http://www.ifc.org/ifcext/economics.nsf/Content/CG_DFIs_Initiative

- UNEP Finance Initiative reports and work streams

- http://www.unepfi.org/work_streams/investment/index.html

- http://www.unepfi.org/work_streams/investment/materiality/

- http://www.unepfi.org/work_streams/investment/amwg/index.html

- UNEP Principles for Responsible Investment (launched April 2006)

- http://www.unpri.org/

- signatories: http://www.unpri.org/signatories/

- UN Global Compact’s Financial Markets Program

- http://www.unglobalcompact.org/Issues/financial_markets/index.html

- UN Global Compact, IFC, Swiss Department of Foreign Affairs conference report New Frontiers in Emerging Markets Investment (August 2007)

- http://www.ifc.org/ifcext/enviro.nsf/Content/Publications_SustFinance#WhoCares2007

- EU Shareholder Rights Program (2007)

- http://ec.europa.eu/internal_market/company/shareholders/indexa_en.htm

- EU Compendium on National Public Policies on CSR (updated annually)

- http://ec.europa.eu/employment_social/emplweb/csr-matrix/csr_matrix_en.cfm

- EU and others launch Markets in Financial Instruments Directive (November 2007)

- background: http://en.wikipedia.org/wiki/MiFID

- UN General Assembly adopts a resolution promoting global partnerships and requests a report on progress in a year (December 2007)

- http://www.unglobalcompact.org/NewsAndEvents/news_archives/2007_12_05a.html

- OECD releases Draft Guidelines on Pension Fund Governance (August 2008)

- http://www.oecd.org/document/45/0,3343,en_2649_34853_41088685_1_1_1_1,00.html

- The European Union’s European Investment Bank releases a revised Statement of Environmental and Social Principles and Standards (Fall 2008)

- http://www.eib.org/about/news/public-consultation-on-eibs-eib-statement-of-environmental-and-social-principles-and-standards.htm


- 60 financial institutions have adopted the Equator Principles since 2003 (November 2007)

- http://www.equator-principles.com/

- http://www.equator-principles.com/documents/EP_5th_anniversary_press_release.doc

- Ceres, the Environmental Defense Fund, States and investors file petition with the US SEC to require corporate reporting on climate risk (September 2007)

- http://www.ceres.org/news/news_item.php?nid=333

- http://www.socialfunds.com/news/article.cgi/2388.html

- Aspen Principles report Long-Term Value Creation: Guiding Principles for Corporations and Investors chaired by the Aspen Institute (June 2007)

- http://www.aspenbsp.org/

- Goldman Sachs adopts policies promoting ESG performance

- http://www2.goldmansachs.com/our_firm/our_culture/corporate_citizenship/index.html

- Trucost releases report on UK corporate reporting (November 2007)

- http://www.trucost.com/pressreleases/EA‑disclosures.html

- Innovest annual ranking of corporate performance (since 2005)

- http://www.global100.org/

- the Social Investment Research Analyst Network releases Sustainability Reporting in Emerging Markets: An analysis of the sustainability reporting in selected sectors of seven emerging market countries (January 2008)

- http://www.siran.org/emd/

- SAM Group and Pricewaterhouse Coopers launch The Sustainability Yearbook 2008 (January 2008)

- http://www.sam-group.com/yearbook/

- Leading banks Citi, JP Morgan Chase and Morgan Stanley adopt The Carbon Principles (February 2008)

- http://www.citigroup.com/citigroup/press/2008/080204a.htm

- Network for Sustainable Financial Markets provides comments and recommendations on OECD Guidelines for Pension Fund Governance, including fiduciary duty (October 2008)

- http://www.sustainablefinancialmarkets.net/wp-content/uploads/2008/10/oecd-guidelines.pdf

- Ceres and fourteen institutional investors ask the US SEC to require improved corporate climate risk disclosure and address a broader range of environmental, social and governance risks in disclosure requirements (October 2008)

- http://www.csrwire.com/News/13537.html

- http://www.responsible-investor.com/home/article/aviva/

- http://www.aviva.com/index.asp?PageID=44&category=csr&year=Latest&newsid=4556

- International Corporate Governance Network releases ICGN Statement and Guidance on Non-financial Business Reporting (December 2008)

- http://www.icgn.org/

- the Rockefeller Foundation launches the Global Impact Investing Network (early 2009)

- http://www.rockfound.org/efforts/impact_investing/impact_investing.shtml#top

- Chicago Climate Exchange (2003)

- http://www.chicagoclimatex.com/

- New York Mercantile Exchange (for commodities) announces plans for The Green Exchange for launch in Spring 2008

- http://www.greenfutures.com/


- International Organization of Securities Commissions’ Objectives and Principles of Securities Regulation (May 2003) and Principles for Ongoing Disclosure and Material Development Reporting by Listed Entities (October 2002)

- http://www.iosco.org/about/

- http://www.iosco.org/library/

- International Co-operative Alliance report Corporate Social Responsibility: the Co-operative Difference (October 2007)

- http://www.ica.coop/al-ica/

- report: http://www.global300.coop/downloads

- International Accounting Standards Board’s Work Plan (e.g., emissions trading)

- http://www.iasb.org/

- Chartered Accountants of Canada supports ESG corporate reporting (February 2007)

- http://www.cica.ca/index.cfm/ci_id/36164/la_id/1

- Forum on International Convergence of Accounting in Emerging Markets and Transition Economies (July 2007)

http://www.iasb.org/News/Press+Releases/Convergence+of+accounting+in+emerging+and+transition+economies.htm

- European Federation of Financial Analysts Societies’ Commission on Environmental, Social and Governance Issues

- http://www.effas.com/en/commissions.htm

- the Society of Investment Professionals in Germany releases KPIs for ESG: Key Performance Indicators for Environmental, Social and Governance Issues (March 2008)

- http://www.dvfa.de/die_dvfa/kommissionen/non_financials/dok/35683.php

- CFA Institute (Institute of Chartered Financial Analysts) releases Environmental, Social and Governance Factors at Listed Companies: A Manual for Investors (May 2008)

- http://www.cfapubs.org/toc/ccb/2008/2008/2

- National Association of Corporate Directors releases Key Agreed Principles to Strengthen Corporate Governance for U.S. Publicly Traded Companies (October 2008)

- Global Reporting Initiative Guidelines now used by more than 1,000 companies (GRI was launched in 1997; the guidelines were launched in 2000)

- http://www.globalreporting.org/

- SustainAbility’s Global Reporters Program has released four biannual reports on corporate non-financial reporting (since 2000)

- http://www.sustainability.com/insight/global_reporters.asp


- East-West Management Institute surveys of CSR reporting in Central and Eastern Europe (since 2003)

- http://www.pfsprogram.org/

- the Association for Sustainable & Responsible Investment in Asia releases report on ESG disclosure for listings on the Hong Kong Stock Exchange (August 2006)

- http://www.asria.org/publications

- International Organization for Standardization’s Advisory Group on Social Responsibility preparing voluntary guidance ISO 26000 (planned for 2010)

- http://www.iso.org/sr

o Global Ratings Agencies promoting ESG policies

o Standard and Poor’s and Hawkamah announce plan for ESG index for 11 Middle East countries in Spring 2009

-press release April 15, 2008: http://www2.standardandpoors.com/

- UNEP Finance Initiative

Geneva

- http://www.unepfi.org/

- UN Global Compact

New York

- http://www.unglobalcompact.org/

- International Finance Corporation

Washington, DC

- http://www.ifc.org/

- International Organization of Securities Commissions

Madrid

- http://www.iosco.org/

- World Federation of Exchanges

Paris

- http://www.world-exchanges.org/

- WFE Topic on Sustainability

- http://www.world-exchanges.org/topics

- Asia: http://www.aosef.org/

- Euro-Asia: http://www.feas.org/

- Europe: http://www.fese.eu/en/

- South Asia: http://www.safe-asia.com/index.php

- Americas: (web site coming soon)

- Africa: http://www.africansea.org/

- International Association of Insurance Supervisors

Basel

- http://www.iaisweb.org/

- Association for Sustainable & Responsible Investment in Asia

Hong Kong

- http://www.asria.org/


- GovernanceMetrics International

- http://www.gmiratings.com/

- Partners: http://www.gmiratings.com/(l55xpxztwcjipw55moqco155)/partners.aspx

- IBLF and IIED report Exploring the Role of Development Cooperation Agencies in Corporate Responsibility (May 2004)

- http://www.iblf.org/resources/general.jsp?id=46

- World Economic Forum and AccountAbility release Mainstreaming Responsible Investment (January 2005)

- http://www.accountability21.net/publications.aspx?id=1228

- European Alliance for CSR, EABIS and others launch Corporate Responsibility and Market Valuation of Financial and Non-Financial Performance (June 2007)

- http://www.csreurope.org/pages/en/marketvaluation.html

- Goldman Sachs report GS Sustain (June 2007)

- http://www.unglobalcompact.org/NewsAndEvents/news_archives/2007_07_05d.html

- Germany’s GTZ and the Bertelsmann Foundation release The CSR Navigator: Public Policies in Africa, the Americas, Asia and Europe (October 2007)

- http://www.gtz.de/en/leistungsangebote/21388.htm

- UNEP Finance Initiative report Demystifying Responsible Investment Performance (October 2007)

- http://www.unepfi.org/work_streams/investment/amwg/

- Oxford Business School’s Skoll Centre for Entrepreneurship report Creating a Social Stock Exchange; 2007

- http://www.csrwire.com/resources/directory/organization/2567


- World Bank Program: Reports on the Observance of Standards and Codes

- http://www.worldbank.org/ifa/rosc.html

- the Social Investment Forum’s list of organizations using ESG factors in rating publicly traded companies

- http://www.socialinvest.org/directory/

- go to Social Investment Research

- Sovereign Wealth Fund Institute (established January 2008)

- http://www.swfinstitute.org/

. My thanks to contributors. This paper is in the public domain.