Lisa Hayles and Stephanie Maier, Ethical Investment Research Services (EIRIS) Ltd
What was considered by some as a niche approach to investment is developing into a set of sophisticated, integrated and influential strategies adopted by a wide range of investors. The public's broader awareness of sustainable development issues, and the growing number of initiatives encouraging greater corporate transparency and accountability on CSR issues, have supported demand for the creation of new SRI investment products.
Increasingly, investors across the EU are running funds with sophisticated environmental, social and governance (ESG) criteria and are incorporating these issues into their financial analysis of companies. Moreover, both sell-side and buy-side analysts are beginning to see ESG issues as potential risks or opportunities or both.