Global Survey of Environmental, Social and Governance Policies

Michael J. Kane

March 23, 2015

Global Survey of Environmental, Social and Governance Policies

ofNational Governments, International Organizations and Institutional Investors[1]

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 Exchanges with Journalism Programs

- National, Regional & Global Social & Environmental Exchanges Promoting ESG Performance

-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

- National, Regional and Global Insurance Organizations Promoting ESG Performance

- National, Regional and Global Index Providers Promoting ESG Performance

- National and Regional Financial Organizations

- National Sustainable Investment Programs and Associations

- Multilateral Development Banks Promoting ESG Performance

- International Organizations Promoting ESG Performance

- Investor Initiatives Promoting ESG Performance

- Investor Initiatives in Corporate Bonds Promoting ESG Performance

- Investor Initiatives for Fixed Income Promoting ESG Performance

- Banking Organizations Promoting ESG Performance

- Bond Markets Promoting ESG Performance

- Private Equity Organizations Promoting ESG Performance

- International Financial Organizations

- Professional Organizations

- National and Global Non-Governmental and Consulting Organizations Promoting ESG Performance

- Professional Service Providers

- Global and Regional Ratings Programs Promoting ESG policies

- Country Reports Promoting ESG policies in Capital Markets

- Global and Regional Research Providers

- Public Policy Organizations

- Academic Programs Promoting ESG Performance

- Key International Organizations for Future Partnerships

- Resources for Research and Training

- ESG Conferences

*******

Introduction

The purpose of this survey 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.

Surveys and Trends

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

- IFC and Mercer release global survey in emerging markets: Gaining Ground: Integrating ESG factors into investment processes in emerging markets(March 2009)

- EIRIS report At risk? How companies manage ESG issues at board level (May 2009)

- GovernanceMetrics releases first Country Rankings survey (September 2009)

- EIRIS report Taking stock: How leading stock exchanges are addressing ESG issues and the role they can play in enhancing ESG disclosure (November 2009)

- pdf:

- the Global Reporting Initiative releases Carrots and Sticks – Promoting Transparency and Sustainability; An update on Trends in Voluntary and Mandatory Approaches to Sustainability Reporting (May 2010)

- EIRIS report Sustainable Stock Exchanges: improving ESG standards among listed companies (September 2010)

- pdf:

Eurosif’s European SRI Study (October 2010)

MSCI’s 2012 ESG Trends to Watch (December 2011)

EIRIS Sustainability Ratings is launched (March 2012)

pdf:

PwC report on private equity trends: Responsible Investment: Creating Value from Environmental, Social and Governance Issues (March 2012)

UK SIF, Thomson Reuters release Tenth Annual Survey of SRI trends (July 2012)

Business for Social Responsibility releases report Trends in ESG Integration in Investments (August 2012)

Malk Sustainability Partners and the Environmental Defense Fund release report ESG in Private Equity (Fall 2012)

-Eurosif’s SRI Study 2012 (October 2012)

-EIRIS report Evolving Markets: What’s driving ESG in emerging economies? (October 2012)

-US SIF’s 2012 report on SRI trends in the US (November 2012)

-ASrIA’s Asia Sustainable Investment Review 2012 (December 2012)

-Eurosif releases new European SRI transparency code (2012)

-Canada’s Social Investment Organization releases report Canadian SRI Review 2012 (January 2013)

-Global Sustainable Investment Alliance report Global Sustainable Investment Review 2012 (January 2013)

Conflict Risk Network, with more than $3 trillion in assets, becomes part of EIRIS (May 2013)

the Global Reporting Initiative, UNEP and others release Carrots and Sticks: Sustainability reporting policies worldwide (update from 2010 report; May 2013)

NYSE Euronext joins UN Sustainable Stock Exchanges Initiative (July 2013)

Networks of the Global Investor Coalition on Climate Change release 3rd annual report Global Investor Survey on Climate Change (August 2013)

Eurosif report Shareholder Stewardship: European ESG Engagement Practices 2013 (September 2013)

Corporate Knights and others release report Trends in Sustainability Culture: Benchmarking the World’s Stock Exchanges (October 2013)

US SIF releases report on investment guide for foundations (January 2014)

Eurosif report European SRI Study 2014 (October 2014)

Hermes releases first annual Responsible Capitalism Survey (October 2014)

Calvert releases report Global Finance Indices and Natural Capital Policies Assessment: Q3 2014 Baseline Analysis (November 2014)

-US SIF’s 2014 report on SRI trends in the US (November 2014)

-ASrIA’s Asia Sustainable Investment Review 2014 (December 2014)

-Global Sustainable Investment Alliance report Global Sustainable Investment Review 2014 (January 2015)

National Development Finance Agencies Promoting ESG Performance

- US Export-Import Bank adopts carbon finance policy (November 2009)

US Export-Import Bank adopts Equator Principles (March 2011)

Korea Eximbank Green Finance program

20 national agencies launch International Development Finance Club with UN collaboration (October 2013)

IDFC announces $100 billion per year by 2015 for climate change investment (September 2014)

National Securities and Exchange Agencies Promoting ESG Performance

- US SEC adopts rule requiring all US exchanges to revise their listing standards to comply with auditing standards in Sarbanes-Oxley Act of 2002 (April 2003)

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

US SEC releases Staff Legal Bulletin 14B re: shareholder actions (September 15, 2004)

- UK Accounts Modernisation Directive requires environmental reporting (2006)

- China Securities Regulatory Commission releases Administrative Measures for the Disclosure of Information of Listed Companies (January 2007)

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

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

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

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

- 2011 update:

- Bursa Malaysia, Securities Commission Malaysia and the Minority Shareholder Watchdog Group launch the Corporate Governance Index (June 2009)

- US SEC provides for shareholder resolutions on social and environmental matters (October 2009)

- US SEC approves enhanced disclosure of risk, compensation, corporate governance and board diversity (December 2009)

- Ontario Securities Commission releases OSC Corporate Sustainability Reporting Initiative (December 2009)

-pdf:

- US SEC provides guidance on disclosure of climate risk (January 2010)

- pdf:

- background:

- US SEC advisory committee develops workplan to examine ESG matters (February 2010)

- US SEC will implement Financial Reform Act of 2010 for corporate disclosure re: conflict minerals (Title XV, Section 1502); mining (Section 1503); resource extraction (Section 1504) (July 2010)

- global background:

- Canadian Securities Administrators releases Environmental Reporting Guidance (October 2010)

- text:

US SEC proposes rule to require disclosure of mine safety violations (January 2011)

US SEC allows shareholders to request vote on genocide policy of JP Morgan Chase (March 2011)

US SEC requires disclosure of risk from natural gas drilling (hydraulic frackturing) (August 2011)

US SEC staff summary of ethics compliance and enforcement program (October 2011)

US SEC releases guidance on cybersecurity risk (October 2011)

India’s Securities and Exchange Board requires Business Responsibility Reports (November 2011)

US SEC announces new Investor Advisory Committee (April 9, 2012)

US SEC adopts rules requiring payment disclosures for resource extraction (August 2012)

US SEC adopts rule for disclosing use of conflict minerals (August 2012)

US SEC releases notice for corporate disclosure of information related to Iran, Syria (December 2012)

US SEC allows Boston Common Asset resolution at PNC Bank re: climate risk disclosure (February 2013)

US SEC, FINRA and CFTC release guidance on business continuity planning, based on experience after Hurricane Sandy (August 2013)

US SEC proposes rules for pay ratio disclosure (September 2013)

Malaysia: Securities Commission Malaysia releases stewardship code (June 2014)

US SEC posts comments on disclosure effectiveness (Summer - Fall 2014)

National Stock Exchanges Promoting ESG Performance

-Brazil’s BOVESPA launches the Novo Mercado corporate governance program (December 2000)

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

- NASDAQ OMX Corporate Sustainability

- South Africa’s Johannesburg Exchange (since 2004)

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

- Shanghai Stock Exchange and Shenzhen Stock Exchange create China Securities Index Co., Ltd to create indices for listed companies (September 2005)

- Brazil’s Bovespa Corporate Sustainability Index(since December 2005)

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

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

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

- National Stock Exchange of India collaboration with S&P, CRISIL on ESG Index (2007)

- (under Indices)

- Australian Securities Exchange Corporate Governance Council Guidelines (Principles 3 and 7) provide for ESG analysis in annual corporate governance statements (August 2007)

- Hanover Stock Exchange (Borse Hannover) launches Global Challenges Index with oekom research ratings firm (September 2007)

January 2013 update:

Thai Stock Exchange releases corporate governance principles document (undated; circa 2008)

- Shanghai Stock Exchange releases Guideline on Environmental Information Disclosure by Listed Companies (May 2008)

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

- 2010 update:

- Deutsche Borse Group releases first annual Corporate Responsibility Report (2009)

- Vienna Stock Exchange launches Responsible Investment Universe Index (January 2009)

- Korea Exchange launches Socially Responsible Investment Index in Fall 2009

- NYSE Euronext and Asset4 announce partnership to make Asset4 software available to analyze ESG factors at companies listed on NYSE Euronext (May 2009)

- Indonesia Stock Exchange announces plans for the SRI-KEHATI Index (June 2009)

- NASDAQ OMX and CRD Analytics launch Global Sustainability 50 Index (June 2009)

- Warsaw Stock Exchange launches Respect Index(June 2009)

- Shanghai Stock Exchange launches Social Responsibility Index (August 5, 2009)

Istanbul Stock Exchange becomes signatory of Principles of Responsible Investment (January 2010)

- Italian Exchange’s Ethical Finance Program (February 2010)

- Egyptian Exchange launches ESG Index (March 2010)

- China’s Hang Seng Index launches Corporate Sustainability Index (July 2010)

- World Federation of Exchanges releases Exchanges, ESG and Investment Decisions (September 2010)

- NYSE Euronext and APX launch NYSE Blue for environmental and sustainable energy markets (September 2010)

- EIRIS report Sustainable Stock Exchanges: improving ESG standards among listed companies (September 2010)

- pdf:

- China Securities Index Company (Shanghai and Shenzhen stock exchanges) launches CSI ECPI China ESG 40 Equity Index (September 2010)

- NASDAQ OMX launches Green Indexes (September 2010)

- Malaysia’s BursaMalaysia launches Business Sustainability Programme and announces plans for ESG index (November 23, 2010)

- Mexico’s Bolsa Mexicana de Valores launches the Mexican Sustainability Index (December 2010)

-NYSE Euronext launches NYSE Blue (February 2011)

-Spanish Exchange (BME) becomes member of UN Global Compact (March 2011)

-Seven Asian stock exchanges launch ASEAN Exchanges (April 2011)

-Singapore Exchange releases Guide to Sustainability Reporting for Listed Companies (June 2011)

Mexican Stock Exchange launches Sustainability Index (December 2011)

PRI releases report: Sustainable Stock Exchanges: A Report on Progress (March 2012)

Five major stock exchanges agree to promote ESG performance with companies listed on their exchanges: NASDAQ, BM&F Bovespa, Johannesburg, Istanbul and Egypt (June 2012)

Hong Kong Exchange releases new ESG guidelines (August 2012)

India’s Securities and Exchange Board requires Business Responsibility reporting with ESG information (August 2012)

NASDAQ OMX joins UN Global Compact (November 2012)

Italian Exchange’s new stewardship code (November 2012)

NYSE Euronext and Vigeo launch ESG indices (March 2013)

Luxembourg Stock Exchange launches Responsible Investment Index (July 2013)

Deutsche Borse Group releases report Communicating Sustainability (September 2013)

Mumbai Stock Exchange and Indian Institute of Corporate Affairs sign agreement to develop CSR index (September 2013)

Corporate Knights Capital releases report providing rankings of sustainability disclosure performance of listed companies on stock exchanges; in collaboration with UN Sustainable Stock Exchanges Initiative and others (October 2013)

EIRIS releases progress report on sustainable stock exchanges (November 2013)

Warsaw Stock Exchange joins UN Sustainable Stock Exchanges Initiative (December 2013)

Santiago Stock Exchange announces plans for ESG research with MSCI (February 2014)

Toronto Stock Exchange and CPA Canada release report A Primer for Environmental & Social Disclosure (March 2014)

pdf:

London Stock Exchange group joins Sustainable Stock Exchanges Initiative (June 2014)

Colombian Securities Exchange joins UN Sustainable Stock ExchangesInitiative (July 2014)

Mexican Stock Exchange joins UN Sustainable Stock Exchanges Initiative (August 2014)

Thai Stock Exchange joins UN Sustainable Stock Exchanges Initiative (September 2014)

Istanbul Stock Exchange launches sustainability index (September 2014)

Sustainable Stock Exchanges 2014 Report on Progress (October 2014)

Singapore Exchange to require sustainability reporting (October 2014)

Santiago Stock Exchange joins UN Sustainable Stock Exchanges (December 2014)

Nairobi Securities Exchange joins UN Sustainable Stock Exchanges (March 2015)

National Stock Exchanges with Journalism Programs

Kyrgyz Stock Exchange Press Club (since mid-1990’s, with support from US AID, Soros Foundation, others)

Thai Publica Online News Agency (2011)

translation:

National, Regional & Global Social & Environmental Exchanges Promoting ESG Performance

- Brazil’s Environment and Social Investment Exchange (2003)

Beijing Municipal Government launches the China Beijing Environment Exchange (2008)

Impact Reporting & Investment Standards (2008)

Global Impact Investing Network (2009)

GIIN online directory: (2013)

- Impact Investment Exchange Asia (2009)

- Global Social Investment Exchange launches global portal (2009)

- Portugal’s Social Stock Exchange(2010)

Toronto’s Social Venture Exchange (summer 2011)

UK’s Social Stock Exchange (June 2013)

London

National Agencies Promoting ESG Performance

US EPA establishes Environmental Finance Advisory Board(1989)

Japan’s Ministry of the Environment releases Environmental Reporting Guidelines (March 2004)

pdf:

- China’s State Environmental Protection Administration releases Measures on Open Environmental Information (February 2007; effective May 2008)

- UK Environment Agency report Environmental Disclosures: The Second Major Review of Environmental Reporting in the Annual Report & Accounts of the FTSE All-Share (2007)

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

-pdf:

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

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

- India’s Ministry of Corporate Affairs establishes the Indian Institute of Corporate Affairs and the National Foundation for Corporate Governance (2008)

- IICA :

- NFCG:

- India’s Ministry of Corporate Affairs releases voluntary guidelines on corporate governance and on corporate social responsibility (December 2009)

Japan’s Ministry of the Environment releasesPrinciples for Financial Action Towards a Sustainable Society (March 2012)

China’s State-Owned Assets Supervision and Administration Commission releases report 2011 Analysis Report of the CSR Reports of Central Enterprises (May 2012)

Chinese:

Foretica releases report on state-owned companies (June 2012)

UN Global Compact and Maplecroft launch Working with State-Owned Enterprises (August 2012)

Germany’s Ministry of Environment and UN PRI release handbook for investment (in German) (March 2013)

India adopts new Companies Bill on corporate governance (August 2013)

Japan’s Financial Services Agency releases draft stewardship code (December 2013)

China’s Development Research Center of the State Council releases report Greening China’s Financial System (January 2014)

pdf:

UK Law Commission report on fiduciary duty (July 2014)

National Foreign Affairs, Economics and Trade Agencies Promoting ESG Policies

- UK Foreign & Commonwealth OfficeCSR program (since 1995)

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

- Japan’s Ministry of the Environment provides laws and guidance on environmental reporting, environmental management systems, and environmental accounting (since 2000)

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

Dutch Ministry of Economic Affairs releases annual Transparency Benchmarks for CSR Reports(since 2004)

- Japan adopts Law No. 77 re: business information and responsibilities (2004)

- pdf:

- Dutch Corporate Governance Code Monitoring Committee, established in 2004, revises code to expand CSR/ESG factors (2009)

- Norway’s Ministry of Foreign Affairs releases report Corporate Social Responsibility in a Global Economy (January 2009)

- Egypt’s Institute of Directors (of the Egyptian Ministry of Investment) launches Egyptian ESG Index (January 2010)

India’s Ministry of Corporate Affairs releases National Voluntary Guidelines on Social, Environmental, and Economic Responsibilities of Business (July 2011)

Germany’s Council for Sustainable Development adopts German Sustainability Code (October 2011)

US Office of the Trade Representative and Department of State release new model bilateral investment treaty with stronger labor and environmental protection (April 2012)

France’s Ministry of Commerce releases report on responsible investment (June 2013)

Japan’s Ministry of Economy, Trade and Industry releases statement on investors and companies (November 2013)

National and other Governmental Agency Pension Funds Promoting ESG Performance

- Norway’s Ethical Guidelines for the Government Pension Fund