Investors hail ‘landmark moment’ for responsible investment in South Africa

On Thursday (21 May, 2009) a group of South African investors and service providers worth approximately R1,625bn, with support from a major international investment house, launched an ambitious investor-led network as part of their commitment to the UN-backed Principles for Responsible Investment (PRI).

South Africa becomes only the third country in the world to host such a network, following the emergence of other PRI country networks in Brazil and South Korea. The South African network was hailed as a ‘potential landmark moment for responsible investment in South Africa’.

The South African PRI Network is to be led by Government Employees Pension Fund and supported by the PRI Secretariat and Noah Chair for Responsible Investment at UNISA. The aims and objective of this network are:

· To raise awareness about the business case for responsible investment in order to persuade more South African pension funds and other asset owners to consider environmental, social and corporate governance factors in their investment decisions (ESG).

· To capture evolving best practice on how to factor ESG issues into investments processes and to implement the Principles in the South African context.

· To examine any regulatory and other barriers that might prevent an increase in the ability of South African investors to engage with companies so as to improve corporate performance on environmental, social and corporate governance matters. This will include discussing the potential for future collaborative engagements by investors.

John Oliphant, Head: Investments and Actuarial at GEPF said, “The new network has come together to help investors put the Principles for Responsible Investment into practice here in South Africa. As investors we recognise that ESG issues such as transformation, human rights and climate change can have a financial impact on our investments if they are not successfully managed, and we are therefore committed to helping build South African capital markets that are sustainable over the long term.

“No financial institution can do this alone, and this network will help responsible investors in South Africa to combine our knowledge, influence and reach wherever possible. It’s a potential landmark moment for responsible investment in South Africa.”

James Gifford, Executive Director of the PRI added, “I am delighted that PRI signatories in South Africa have taken the initiative to create this network. Responsible investment is a global movement but needs to be applied to local conditions and focus on issues that are relevant to local investors. This network is a significant step forward in the mainstreaming of responsible investment practices across the globe.”