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SRI HEADLINES


 The news that shaped the week in responsible investing 
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Dear SRI reader,

There are two important components to the SRI industry which have historical relevance: being able to track and measure demand and the ability to advance the growth of more demand. Studies and reports as the one produced by Eurosif at European level, is a way to meet the first target. 
This week opened with the positive data published in the 
Trends Report, the biennial study prepared by USSIF. The report finds that the total of SRI and impact investing assets under management in the last two years hit $12 trillion in the US, a record figure, particularly under the present difficult political circumstances. Much of the growth, which shows a strong increase by 38% in the course of the last two years, was driven by asset managers who now consider environmental, social and governance (ESG) criteria across $11.6 trillion in assets, 30% more than two years ago. The ESG category that asset managers cited as most important was climate change, followed by tobacco, conflict risk, human rights and transparency and anti-corruption.
Asset owners, however, ranked conflict risk ahead of ESG criteria like tobacco, climate change and carbon, board issues, and executive pay.
The report also noted a difference in motivation between asset managers and asset owners for integrating ESG issues. Client demand is shaping the new responsible investment trends as investors are increasingly interested in pursuing a positive impact.
Picking up on this rising trend in motivation and client demand, this week marked the end of the SRI week in Italy. Organised by 
Forum per la finanza sostenibile, the SRI week was rich in events which focused on the different aspects of sustainable and responsible investing. The week gathered many participants and successfully proved the positive impact of our Italian member on the local financial scene. The SRI weeks, organised by the SIFs across European countries, are aimed at raising awareness around sustainable and responsible investing by engaging professional stakeholders and current and potential new investors, particularly in the retail segment. They are certainly a way to generate more client demand and therefore meeting a second important component for the industry.
As you certainly know, next Monday, Eurosif will host the launch event of its European SRI Study 2018. The event will be an occasion to look at how the latest policy changes have influenced the growth of our industry and analyse the latest trends. We will have a special issue of the SRI Headlines on Monday to delve in detail on the latest changes in the SRI industry.

Happy reading!

Flavia Micilotta
- Eurosif's Executive Director
ESG
 
Accounting roundup: IASB vice-chair flags insurance asset concerns (IPE) - The vice-chair of the International Accounting Standards Board (IASB) has warned of a pressing need to finalise the board’s new rule book for insurance accounting over fears of ‘hidden asset’ risks.
New report finds car tyres responsible for thousands of tonnes of plastic pollution in the UK (Climate Action) - A new report by Friends of the Earth has found that car tyres are responsible for a large amount of plastic pollution in the UK.
European Parliament strengthens European social pillar (Euractiv) - The European Parliament has been working hard on the EU’s social policy, voting in favour of establishing a “European social watchdog” and coordinating social security systems on 20 November.
A zero-carbon economy is both feasible and affordable (Financial Times) - The issue is whether governments, industry and consumers are willing to do what is required
Polish government split over coal ahead of UN climate summit (Climate Change News) - The energy minister has published a statement in defence of coal, which was swiftly disavowed by the presidency of the upcoming Cop24 climate negotiations.
EIOPA plays down impact of IORP II sustainability rules (IPE) - An amendment to IORP II addressing sustainability matters would not have to mean “a major overhaul”, according to the chairman of the European Insurance and Occupational Pensions Authority (EIOPA).
EU must set 'clear direction' for 2050 net zero target, member states demand (BusinessGreen) - Member states and businesses pile pressure on EU to raise ambition on climate change and clean energy.
10 countries demand net-zero emission goal in new EU climate strategy (Euractiv) - Ministers from ten EU countries have urged the European Commission to chart a “credible and detailed” path towards net-zero emissions in 2050, ahead of the launch of a landmark climate strategy next week.
Strong rules for Paris deal can spur global climate action (Climate Change News) - Two major objectives for the upcoming UN climate conference in Katowice, Poland, are strengthening climate ambition and adopting the Paris “rulebook”.
Europe’s packaging headache (Euractiv) - European Union members will have to recycle at least 70% of packaging by 2030, under new rules brokered earlier this year. But there are complex mechanisms behind the recycling curtain and not all countries are ready yet to keep up with the pace.
France’s AFEP warns EU on oversimplified sustainability taxonomy (Environmental Finance) - The influential French Association of Large Companies (AFEP) has issued a striking warning to the European Commission that its sustainability taxonomy risks presenting an oversimplified solution to a complex problem.
Government faces fresh pressure to strengthen Green Brexit safeguards (BusinessGreen) - French President Emmanuel Macron is reportedly leading calls for key political declaration to strengthen UK-EU ties on climate action.
 
Investors
 
Carney sees “cognitive dissonance” over climate liabilities/assets 
(Responsible Investor) - Bank of England Governor was speaking at A4S event in London.
IIGCC publishes climate scenario analysis guide (Environmental Finance) - Investors who use scenario analysis will be better equipped to respond to early warning signs, such as a rising carbon price, and take more informed investment decisions as the low-carbon transition evolves.
The $6.3 trillion dollar question for mobilising private capital in the fight against climate change (Responsible Investor) - This year’s OECD Forum on Green Finance and Investment Co-operation focused on the vital need for financial collaboration, and how to engender it.
Switzerland to repeat study of asset owner alignment to 2°C and roll it out internationally (Responsible Investor) - Government announces creation of PACTA, the Paris Agreement Capital Transition Assessment.
Investors and businesses—our best chance to avert climate change? (Eco-Business) - The recent IPCC report drove home the urgency of taking action to prevent the worst impacts of climate change from happening.
Revealed: European central banks emerge as major corporate green bond buyers (Responsible Investor) - Eurosystem banks amass €6bn holding in the asset class
Signs That Institutional Investors May Be Reorienting Towards Sustainable Investing (Forbes) - Could sustainable investing be at a tipping point?
Sustainable investing assets in US hit $12trn (Environmental Finance) - Sustainable, responsible and impact investing assets have hit $12 trillion in the US, according to the US Forum for Sustainable and Responsible Investment (US SIF) Foundation.
 
Asset Managers
Sustainable investing drives £723m rise in Liontrust assets (FT Adviser) - Liontrust's assets under management rose by £723m in the six months to the end of September, driven largely by inflows into the sustainable investment fund range bought from Alliance Trust.

BlackRock launches 'low-cost' green bond ETF (Environmental Finance) - BlackRock has launched its second green bond fund, saying it will be the 'lowest-cost' green bond exchange-traded fund (ETF) in the US.

EIB plans fund to invest in 'circular bio-economy' 
(Environmental Finance) - The European Investment Bank (EIB) is seeking a fund manager for a new fund that will invest in companies developing innovative bio-economy projects.
“Sadly, with respect to climate, history repeats not as farce but as tragedy, with growing frequency.”
Mark Carney, Governor of the Bank of England
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