The bottoms activists demand more repayments by objectives nonfinanciers and diversity in the administration advice
The denominated socially responsible investment has undergone an exponential growth during the past few years in the advanced capital markets, European and essentially Anglo-Saxon. According to the last data published by the Global Sustainable Alliance, in the global scope it has near 23 trillions of dollars managed with criteria that consider aspects as the good governance, the environment or the social performance, and that supposes an increase of 25% with respect to 2014. This growth has its origin in the premise of which the companies that render attention to sustainability criteria offer better yields to equal parameters of fit risk that its competitors.
The season of world-wide meetings 2017 revealed that the investors are more and more inclined and promote to the companies to have a direct dialogue on subjects that leave the financial orbit, which allows that the investor at the time of emitting his vote understands subjects that a priori could generate controversy or reputacional risk. This fact has motivated that the emitters have regained consciousness about the importance of incorporating subjects ESG (Enviromental, Social and Governance, in its abbreviations in English) in their conversations with the institutional investors.
The majority of the companies of Ibex 35 that take to end this type of activities centers the dialogue in the subjects regarding corporative government, although it is certain that already there are companies that have extended the reach, incorporating social affairs, environmental and of ethical order. 40% of the companies of Ibex 35 nonfinancier takes to end roadshows of nature where subjects ESG are included. Also, we have seen how companies of as diverse sectors as technological, the mining one or of manufacture of cars they have undergone in its own meats the pressure of investing socially responsible activists or, which has forced to change its policies to them or to improve its level of communication in lands environmental and social. Although this phenomenon not yet has arrived, is probable that we are witnesses of this type of cases in the next years.
Recently the third edition of the Observatory of the Socially Responsible Investment, elaborated by Georgeson and the Club of Excellence in Sustainability and with the sponsorship of ENDESA appeared in Madrid. In this study they are had including some of the subjects that occupy the agendas of socially responsible the investing denominated ones. Thus, the inclusion of extrafinancial objectives in the repaying schemes of the members of the administration advice is one of the main demands of the foreign institutional investors. In our country, 82% of the companies of Ibex 35 nonfinanciers in their policies of variable repayment for the executive advisors have built-in objectives and the high direction.
The management of the diversity is another one of the great subjects of preoccupation of the institutional investors who worry about subjects ESG. This year we have seen how some investors are intervening in the affair to impel the diversity in the administration advice; this it is the Global case of State Street Advisors, corporation of financial services leader in the world, that announced that it wants that the quoted companies make sure that their advice of administration are diverse and, if they do not do it, will penalize the people in charge to propose new advisors voting against them.
Finally, agenda 2030 for the sustainable development impelled by United Nations presents a great fan of opportunities for the enterprise community. The thematic strategies of investment and impact are those that show a more direct entailment with the objectives of sustainable development. Also, diverse investors have begun to develop tie specific products to this initiative, as indices that tie the impact of the companies on these objectives.
All these facts show that the socially responsible investment has stopped being an emergent subject in the most advanced capital markets, to consolidate of definitive way.
Source: El Pas