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Edhec: Environmental protection is considered an investment theme by 90% of investment management professionals

Tuesday, November 30, 2010
Opalesque Industry Update - In a new EDHEC-Risk Institute Publication, entitled “Adoption of Green Investing by Institutional Investors: A European Survey”, EDHEC-Risk review the concept of green investing and report the results of a European survey on investment management professionals.

One of the key results of the survey is that green investing is a significant movement in which survey respondents are heavily involved. In fact, nearly 90% of respondents consider environmental protection an investment theme and the same percentage plans to do more green investing in the future.

The results of our survey show that the most popular green theme is climate change: 81.5% of the respondents who take green investing into account are concerned with climate change. Other environmental themes such as water management, anti-pollution measures, and improvement of processes are also frequently taken into account by the majority of respondents.

We also find that investors define green investing in different ways. We focus first on the definitions and concept of sustainable development, and the results show that these may not be entirely clear for respondents. Another widely-used term for making extra-financial information an integral part of investment decision making is socially responsible investment (SRI). For a clear majority (61.9%), sustainable development and socially responsible investment are two identical concepts. Such disagreement on basic definitions may further compound the fundamental difficulty of using extra-financial information in the investment process.

Survey results show that the main obstacle to green investing is the lack of credible standards for defining and assessing green investments. 50% of respondents report that this is the biggest obstacle to their adopting green investing criteria.

The main conclusion to this survey is that before the green investment segment can sustain further growth, work towards a sound conceptual underpinning of the green investing approach will have to be done. Furthermore, investors should always have rigorous and well-defined investment processes and analyses, besides their good intentions to be responsible to the planet and to society.

(press release)


A copy of “Adoption of Green Investing by Institutional Investors: A European Survey” can be downloaded by pressing [Ctrl] and clicking on the following link: Adoption of Green Investing by Institutional Investors: A European Survey

This study will be featured at the Green Investing Conference, which will be held at the Nice Campus of EDHEC Business School on December 10th, 2010.

To receive an invitation to the Green Investing Conference, please contact Marie-Josée Tronchet, Tel.: + 33 (0)4 93 18 32 53 - E-mail: marie-josee.tronchet@edhec.edu www.edhec-risk.com

The conference programme can be accessed via the following link: Green Investing 2010

About EDHEC-Risk Institute
EDHEC-Risk Institute is part of EDHEC Business School, one of Europe’s leading business schools and a member of the select group of academic institutions worldwide to have earned the triple crown of international accreditations (AACSB, EQUIS, Association of MBAs). www.edhec-risk.com


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