Buyside Firms Ramp Up Socially Responsible Investing - Survey

Knud Noelle

20 July 2009

Just under a third - 32 per cent - of buyside respondents are now attributing five per cent or more of total commission spending to socially responsible investment, compared with less than one in ten respondents in 2005, according to a survey by Thomson Reuters Extel and UKSIF, the sustainable investment and finance association.

Having polled 300 investment professionals from 19 countries, the firms found 60 per cent of buyside respondents see commissions directly related to SRI/sustainable research services increasing in the next 12 months; additionally, four out of five fund managers are looking for SRI research to be integrated into mainstream analysis.

“SRI and sustainability research is now established as a significant income stream for sell-side leaders. With a major political focus worldwide in the coming months on issues like climate change and social cohesion, the opportunities have never been greater for brokers to produce the high quality analysis needed to help investors respond to these key business drivers,” said Penny Shepherd, chief executive at UKSIF.

“This seventh annual survey shows that leading sell-side individuals and teams have a track record in analysing sustainability issues that is valued by an increasing number of buyside firms,” she added.

Separately, Ethical Investment Research Service (EIRIS), UK private bank Kleinwort Benson and WealthBriefing are currently undertaking a research project studying attitudes towards SRI which combines in-depth interviews with a survey of the global management community.