The European Union should support self-regulatory initiatives on transparency and highlight the benefits of responsible investment, the European Fund and Asset Management Association (EFAMA) has said.
In its 2014 responsible investment report, the organisation said it recognises the need for the investment management industry to play its part in rebuilding investor confidence after the financial crisis.
The report notes that the responsible investment market in Europe is “booming” and points to figures from the European Sustainable Investment Forum (Eurosif). At the end of 2011, the responsible investment market exceeded €6 trillion (£5 trillion), up from the €5 trillion (£4 trillion) at the end of 2009.
EFAMA, which represents around €15 trillion (£12.5 trillion) in assets under management through its members, added that this highlighted that responsible investment was becoming an “increasingly important feature” of the European investment management industry.
One of the issues highlighted by the organisation was the need for transparency so that investors could distinguish between different responsible investment offerings and make an informed decision.
The report said, “EFAMA believes that if an investment manager provides responsible investment products, it should commit to an adequate amount of transparency regarding its processes so that the end investors, its client or beneficiaries, are able to evaluate and compare how it meets the demand for responsible investors.”
The association called on the EU to recognise responsible investment as an incentive that can help encourage corporate responsibility. The report also suggested that the EU should endorse responsible investing in the management of EU state-owned or controlled funds and investment schemes and support self-regulatory initiatives on transparency.
As responsible investment encompasses a wide range of approaches ranging from negative screening and exclusion of companies to an approach where environmental, social and governance (ESG) factors are considered, there is no standardisation across the market. EFAMA added that it considered this to be an issue but noted it was not easily resolved.
Like our Facebook Page
Is It Possible to Work in Tech Without Harming the Planet?
Zero Waste Living and Its Importance
Investing in a Sustainable Environmental Future for Northern Virginia
Prominent Trends in Seafood Sustainability in 2022
Sustainable Landscaping Tips for Your Property
Can PEMF Help To Improve Plant Growth for Eco-Friendly Gardeners
How the U.S. Government is Promoting Green Energy in the Country
12 Essential Things for Buying Your First Home
Harnessing Sustainability with User-Centric Technology Innovation
Making Your Dream of Having an Eco-Friendly Garden Come True
7 Eco-Friendly Plant-Based Alternatives for Everyday Products
Top 5 Benefits of Eco-Friendly Cars
Why Eco-Friendly Homes Should Have Outdoor Bathrooms
Merits of Sustainability Reporting: What Every Manager Must Know
Low Emission and Clean Air Zones: What You Need To Know
CEO Brian Ladin Explains How The Shipping Industry Is Going Green
A Guide to Eco-Friendly Landscaping
Is the Hyundai i30 A Valuable Investment?
Is Couchsurfing a Good Option for Eco-Friendly Traveling?
How To Set Up A Sustainable Smart Home
- Features11 months ago
Seven Health and Safety Tips for Eco-Friendly Products in a Green Home
- Energy12 months ago
Eco-Friendly Homeowners Lower Carbon Footprints through Greater Air Conditioner Efficiency
- Features11 months ago
Essential Guidelines for Eco-friendly Moving into new Home
- Features10 months ago
5 Compelling Reasons to Hire an Eco-Friendly Contractor