Show Me the Money


Published July 2006, this 47-page summary report synthesizes more than 1,000 pages of research from the mainstream financial analyst community. The report draws on work by a group of leading financial institutions and covers the impact of qualitative and new risk issues on company value. Industries covered include the auto-industry, aerospace and defense, the media, and the food and beverage industries.

There is a growing worldwide understanding of the pivotal role the investment community and capital market actors have to play in addressing critical environmental, social and governance (ESG) challenges.

At the same time, the mainstream investment community is waking to the burgeoning opportunities associated with sustainability promoting companies, technologies and investment funds. From cleantech, to renewables and ecosystem services, the growth industries of the 21st century are emerging at an accelerated pace.

With the United Nations Principles for Responsible Investment (PRI), launched in late April 2006, now signed by more than 70 institutional investors from 16 countries and representing more than USD4 Trillion, we can see that some of the largest and most concentrated pools of capital are sending clear signals to the whole investment chain indicating that ESG issues are material and must be integrated into investment analysis, decision-making and action.

The United Nations Environment Programme wholeheartedly welcomes, therefore, the latest report in the UNEP Finance Initiative “Materiality Series” as a landmark contribution to the thinking in these complex and fast evolving areas.

By exploring the drivers and hurdles linking the ESG issues for specific industry sectors with the way companies are valued in the market-place, these reports make an important contribution.

More than 10 brokerage houses have contributed sector specific reports covering food and beverage, auto, aerospace, property, media, chemicals and capital goods industries. This will further deepen our understanding of how ESG issues impact the risk and reward dynamic in given industry and business sectors.

The member companies of UNEP FI Asset Management Working Group should be congratulated for their ground-breaking work in this area.

For a copy of this report please visit the following links www.unepfi.org or click here.

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