SAM, the investment boutique focused exclusively on Sustainability Investing, has received its individual results of the UN Principles for Responsible Investment (UN PRI) Report on Progress 2009. With a score above 95%*, SAM ranks in the first quartile with regard to Principle 1 which requires signatories to incorporate environmental, social, and corporate governance (ESG) into investment analysis and decision-making processes. This leading position was confirmed in the detailed benchmarking report which compares SAM with the other 275 signatories participating in the assessment and with a peer group of 152 investment managers.
SAM case study offers guidance to PRI signatories
In its 2009 Report on Progress, the UN PRI recognized SAMs leadership in ESG integration by highlighting SAMs approach as best practice and using it as an example of how other signatories can improve in this area. The expertise in integration is strongly linked to the fact that SAM with its exclusive focus on Sustainability Investing has been pioneering ways to incorporate environmental, social and long-term business issues in investment products and processes since 1995.
Sander van Eijkern, CEO of SAM: We are delighted with the results of this assessment given the importance of Principle 1 to achieving the vision of the UN PRI and SAMs ambition to lead in this area. SAM is continuously refining the way it incorporates sustainability issues in investment solutions and would be interested to discuss approaches to ESG integration with asset owners and asset managers.
Stephanie Feigt, SAMs Chief Investment Officer: We were not at all surprised to hear that Principle 1 was voted the most difficult principle to implement by the majority of PRI signatories in the 2009 Report on Progress. It is challenging and PRI signatories might adopt different approaches to ESG integration. Whilst some might see integration as the consideration of ESG issues alongside traditional financial measures, we firmly believe that sustainability analysis adds value to investment decisions when it is systematically integrated into financial analysis.
Strong rise in UN PRI signatories reporting awareness grows globally
This year, 153 asset managers and 123 asset owners from all over the world participated in the annual assessment. A total of 276 signatories an increase of 77% from 2008 clearly indicates a rising awareness amongst the financial industry and the growing momentum towards Responsible Investing. Yet, as highlighted in the 2009 Report on Progress, only 5% of the total share of developed markets listed equity is currently subject to integration by PRI signatories, and many still struggle to implement Principle 1 on a systematic basis.
SAMs ambitions for 2010 and beyond
The report on implementing the Principles underscores SAMs position of leadership in Sustainability Investing. Nevertheless, SAM remains dedicated to further improving its scores in order to both serve clients better and to contribute to sustainable financial markets.