European SRI Transparency Code revamped
Eurosif along with the national sustainable investment forums has launched a new, more user-friendly version of the European SRI Transparency Code to reflect recent market developments.
“Building on the past success of the Code, we intend to further increase its adoption and promote it as best practice for any SRI fund publicly available in Europe," says François Passant, executive director, Eurosif.
Eurosif, the European Sustainable Investment Forum has launched the
third version of the European SRI Transparency Code, which aims to increase accountability and clarity of
SRI practices for European investors. The Code focuses on SRI funds distributed
publicly in Europe and has been designed to cover a range of asset classes.
As of December 2012, more than 500 funds
from over 50 signatories have adopted the Code, accounting for over 55% of SRI
funds publicly distributed in Europe. The Code has also been made a mandatory
requirement by a number of national SRI labels or trade associations in Europe.
Under the new version, the objectives of the
Code remain unchanged: to clarify the SRI approach of publicly-available funds
for investors in an easily accessible and comparable format; and proactively to
strengthen self-regulation by setting up a common framework for transparency
Developed in collaboration with the national
SIFs and the Association Française de Gestion (AFG), the new version of the
Code provides a more compact and investor-friendly format,
greater comparability of answers through sub-questions drawn from the previous
Guidance Manual, a set of questions covering new subject areas for the industry
such as the potential use of derivative instruments or securities lending and a
clear emphasis on controls and reporting to investors. It also enables French
asset managers to comply with the requirements of the recent ‘Grenelle II’ Law,
which enshrines a national commitment to the environment.
The European SRI Transparency Code V3.0 will
replace the previous version at end-February. It is accompanied by a Guidance
Manual for fund managers. “This new version of the Code brings clear benefits
in terms of clarity, comprehensiveness and conciseness of the information
brought to investors,” commented Eurosif executive director François Passant. “Building
on the past success of the Code, we intend to further increase its adoption and
promote it as best practice for any SRI fund publicly available in Europe.
We will be doing so through our continuous partnership with the national
SIFs while also seeking further partnerships as appropriate.”