CFA Institute Centre for Financial Market Integrity to Introduce Manual at “ESG Factors & Metrics for Investors,”on July 8, 2008


NEW YORK, June 24, 2008 – The CFA Institute Centre for Financial Market Integrity, the global policy authority on professional and performance standards, financial reporting, and capital markets, today launched Environmental, Social, and Governance Factors at Listed Companies: a Manual for Investors to assist investors in understanding how a company deals with environmental, social and governance (ESG) issues. “Once considered ‘fringe issues,’ these topics are now part and parcel of the metrics used by investment professionals to analyze and value the public companies they invest in,” noted Kurt Schacht , CFA, managing director of the CFA Institute Centre.

The ESG Manual, a companion to The Corporate Governance of Listed Companies: a Manual for Investors, is designed to help investment professionals identify and properly evaluate the risks and opportunities that ESG issues present. “The ESG Manual will help clarify and decipher the sparse and inconsistent ESG information provided in the current financial reports coming from companies,” added Schacht.

The ESG Manual cites several statistics about the growth of the ESG importance to investors, including:

  • Some of the largest investment firms such as Citigroup, Goldman Sachs, JP Morgan, UBS, and West LB currently have dedicated ESG units.
  • According to Demystifying Responsible Investment Performance, a 2007 report from the Asset Management Working Group of the UN Programme Finance Initiative, there is a positive correlation between a company’s ESG behavior and an impact on its bottom line.
  • In April 2006, investment funds representing more than US$4 trillion in assets back the UN Environment Programme Finance Initiative and the UN Global Compact Principles for Responsible Investment (PRI). Currently, more than 300 global institutions representing more than US$13 trillion had endorsed the PRI.

“Investors are generally well versed in analyzing a public company’s financial data, but as more and more firms provide non-financial ESG metrics, investors are finding it challenging to understand and incorporate this into their research models,” said Matt Orsagh, CFA, CIPM, project manager for the ESG Manual and senior policy analyst at the CFA Institute Centre. “The ESG Manual, in conjunction with other CFA Institute Centre manuals on corporate governance and executive compensation, help investors better evaluate a broad range of non-financial factors and risks. We live in a world where events such as the news of a company’s poor safety record or the ramifications of greenhouse gas legislation potentially have substantial impact on a company’s financial prospects.”

The CFA Institute Centre, Bloomberg LP, and the New York Society of Security Analysts are hosting a presentation on the ESG Manual and new tools from Bloomberg that aim to help investment professionals identify, track, and evaluate ESG factors and the associated risks and opportunities.

DATE: Tuesday, July 8, 2008

TIME: 5:30 – 7:30 p.m.

LOCATION: Bloomberg, 731 Lexington Avenue, 6th Floor, New York, NY 10022
Photo ID required to enter building.

SPEAKERS: * Alex Clode, CFA, senior business manager, Bloomberg, LP
* Matt Orsagh, CFA, CIPM, senior policy analyst, CFA Institute Centre

MEDIA RSVP: Contact either Kathy Valentine (kathy.valentine@cfainstitute.org) or Jessica Galehouse (jessica.galehouse@cfainstitute.org). Registration deadline is July 2, 2008.

About the CFA Institute Centre for Financial Market Integrity
The CFA Institute Centre develops timely, practical solutions to global capital market issues. Established in 2004, the CFA Institute Centre builds upon the CFA Institute mission to lead the investment profession globally by setting the highest standards of ethics, education and professional excellence. It carries forward the organization’s 60-year history of standards and advocacy work, especially its Code of Ethics and Standards of Professional Conduct for the investment profession. More information may be found at www.cfainstitute.org/centre.