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Article

4 Sep 2006

Author:
Mike Scott, Financial Times

Non-financial risks: Ethical investors take a step into the mainstream

Some companies are focusing on environmental, social and governance (ESG) issues as a way to minimise the risks to their investments. Groups such as Henderson Global Investors and F&C Asset Management have extended SRI principles across their product ranges. Shares that for many years were associated with the specialised "ethical" investment universe are now increasingly seen as a good investment by the broad fund management industry...A range of initiatives focusing on investor behaviour has been launched recently, including the UN's Principles for Responsible Investment, the Marathon Group, a group of pension funds that takes a longer-term perspective to investing, and the Enhanced Analytics Initiative, which encourages broker research that incorporates extra-financial issues and intangibles. [also refers to WestLB, 3i, Rathbone Brothers]