Investors Urged to Consider Responsible Investment as Part of the Solution to the Crisis
(Jakarta, 9 January 2009) Investors will meet today at the Indonesia Stock Exchange to discuss the UN-backed Principles for Responsible Investment (PRI), and how these Principles can assist investors in managing emerging Environment, Social and corporate Governance (ESG) issues. The meeting will also discuss the importance of responsible investment in the context of the current financial crisis.
The workshop is co-hosted by Indonesia Stock Exchange (IDX), Yayasan Keanekaragaman Hayati Indonesia (KEHATI) and the PRI Initiative, and will be held in Jakarta on January 12th, 2009. The workshop will be open by Dr. Fuad Rahmany, Chairman of The Indonesia Capital Market and Financial Institutions Supervisory Agency (BAPEPAM-LK), and close by Mr. Erry Firmansyah, President Director of Indonesia Stock Exchange.
Keynote speakers include HE Ir Rahmat Witoelar, Minister of the State Ministry of Environment and HE Prof. Emil Salim, the Member of the Advisory Council to the President of Republic of Indonesia.
There will also be presentations and panel discussions with representatives from IDX, MEDCO, Indonesia Capital Market and Financial Institutions Supervisory Agency (BAPEPAM-LK), Mutual Fund Association (APRDI), global fund managers Fortis and Schroders, and specialist consultancy, OWW.
James Gifford, Executive Director of the PRI Initiative, stated, “We are often asked whether responsible investment is relevant in times of crisis such as these. Our response is ‘more than ever’. Responsible investment involves enhanced analysis of a broad range of extra-financial risks, and a more proactive approach to corporate governance, the monitoring of agents and increased transparency and accountability, both in investors’ own operations and those of the companies they invest in. In this context, responsible investment is an important part of the solution to the systemic failures in capital markets. Indeed, one of the causes of the global financial crisis was poor governance and risk management within some of the world’s largest financial institutions”.
Dr. Damayanti Buchori, Executive Director of Ketati stated, “management of societal and ecosystem assets properly by companies and their owners over the long term is an essential ingredient in economic success. Investors have an important role to play in encouraging companies to maintain a long-term approach on issues such as biodiversity conservation, which is emerging as a key risk issue for companies operating in Indonesia. Kehati is pleased to be the first Indonesian investor to sign the PRI and looks forward to working with other global investors to implement the Principles”.
The aim of this workshop is to raise awareness about the business case for investor consideration ESG issues in mainstream investment portfolios, to showcase examples of what responsible investment actually means and to accelerate the uptake of these practices in Indonesia.
The participation of the Ministry of Environment, IDX and the Indonesia Capital Market and Financial Institutions Supervisory Agency is very welcome, as a key element of responsible investment involves dialogue between investors and regulatory and quasi-regulatory bodies. The PRI Initiative has recently established a Public Policy Network, which brings together policy makers and investors on a global level to discuss the frameworks that encourage greater investor responsibility.
The workshop will also introduce the various work streams within the PRI Initiative, including the PRI Clearinghouse, which is the first global collaborative forum for institutional investors to work together to address collective action problems on a global basis.
Notes to editor
For more information contact Sani Burhanuddin, KEHATI Investment specialist on sani@kehati.or.id or sani.burhanuddin@gmail.com Tel: +62 (818) 08805050 or or Elliot Frankal, PRI communications manager on + 44 (0)7989 524780 or elliot.frankal@unpri.org.
Yayasan KEHATI Indonesia
Yayasan Keanekaragaman Hayati Indonesia (Indonesian Biodiversity Foundation – KEHATI) was initiated and established as an independent grant-making foundation, whose grants would fund conservation efforts as well as the sustainable use of Indonesia’s biodiversity resources. KEHATI’s mission is to establish a duly concerned, empower and self-reliant society in the efforts of conservation, tenure, management and utilization of biological diversity in an equitable and sustainable manner to achieve the highest possible quality of life. To achieve the scenario, KEHATI has defined five programs, there are: (i) community empowerment, (ii) public advocacy, (iii) share learning; and (iv) multistakeholder support and participation mobilization.
In April 1995, KEHATI signed a ten year Cooperative Agreement with the US government for endowment fund and preserved the real value of the assets over time to provide a substantial and sustainable flow of income to finance the environmental programs. Management of the endowment fund is professionally allocated in assets and selection of the best asset managers and investment advisors to carry out effort that give stable and higher returns to the foundation. Website: http://www.kehati.or.id.
The Principles for Responsible Investment (PRI)
The Principles for Responsible Investment, convened by UNEP FI and the UN Global Compact, was established as a framework to help investors achieve better long-term investment returns and sustainable markets through better analysis of environmental, responsible ownership practices. The Principles themselves, a full list of signatories and more information can be found at www.unpri.org.
Partner agencies
UN Global Compact
Launched in 2000, the UN Global Compact brings business together with UN agencies, labour, civil society and governments to advance ten universal principles in the areas of human rights, labour, environment and anti-corruption. Through the power of collective action, the Global Compact seeks to mainstream these ten principles in business activities around the world and to catalyze actions in support of broader UN goals. With over 5000 participating companies and hundreds of other stakeholders from more than 120 countries, it is the world's largest voluntary corporate sustainability initiative. More at: www.unglobalcompact.org.
United Nations Environment Programme Finance Initiative (UNEP FI)
UNEP FI is a unique global partnership between UNEP and the private financial sector that works closely with approximately 180 financial institutions to develop and promote linkages between sustainability and financial performance. Through regional activities, a comprehensive work programme, training and research, UNEP FI carries out its mission to identify, promote and realize the adoption of best environmental and sustainability practice at all levels of financial institution operations. More information: www.unepfi.org.
Download Speakers Presentation:
- Mr. Florian Sommer: ESG An International Investment Perspective
- Mr. Prof. Dr. Emil Salim: Challenges to Apply PRI
- Mr. Prof. Ir. Rachmat Witoelar: Principles for Responsible Investment
- Dr. Gifford and Ms. Mnatsakanian: Principles for Responsible Investment
