Rio+10 Finance Commitments

1. A social investment option available to every saver on the planet

2. Not less than 3% of assets to community investment by every SRI fund.

3. Microfinance schemes available to every citizen on the planet.

4. The adoption of borrowing principles by lending institutions and their clients

5. Ambitious investment programmes for renewable energy, mass transit infrastructure and sustainable housing and agriculture.

6. Pensions law in every nation requiring a sustainability impact statement of fund investments.

7. The following environmental and social indicators to be disclosed as a legal requirement in company accounts (see note 7).

8. Universal methodologies for calculating these indicators adopted as international accounting standards.

9. Country ratings for sustainability.

 

Notes to Commitments:
1. Social investment funds and services should be available in every market, especially those with mandatory pension schemes and/or tax exempt saving schemes.
2. Social investment can facilitate widespread access to capital by adopting this simple principle with minimal or no impact on investment performance.
3. This is a universal goal which we should all cherish for ridding humanity of financial poverty. It becomes a real possibility if social investors adopt principle 2.
4. With access to capital comes responsibility. As with investment, so borrowers/lenders could adopt a wider code of values in financial exchange.
5. Social investors could work with governments and corporations to direct far greater resources to these sustainable economy needs.
6. Pension funds are the capital pools which determine our future. As such they must become more accountable for the long-term impacts of their investment policies.
7. A core set of environmental and social indicators are urgently needed to guide corporations towards sustainability. The indicators suggested below balance positive and negative aspects of company activities and focus on PERFORMANCE indicators, not management evaluation. Obviously values can be normalised against a number of items such as turnover, number of employees etc.. whatever is most appropriate (see below).
8. Accounting methodologies must be defined to ensure clear understanding of the data provided and to foster a level playing field for corporations.
9. Corporations can not deliver sustainability alone, governments have to take the lead and should be more clearly evaluated for their success in achieving sustainability goals. Many countries already publish sustainable development plans (as agreed at the Earth Summit in Rio 1992), a starting point for sustainability ratings would be to compare these plans with the economic development plans for the same country. Social investors could work with rating agencies to facilitate this process.

Eco-Indicators

Noise and light pollution issues are not included, at this level of evaluation, they will be captured by 14 if there is a major problem.

1. CARBON (Greenhouse Gases)
DETR Guidelines, WRI-UNEP guidelines

2. WATER
DETR Guidelines

3. OZONE DEPLETION AND ACID RAIN
DETR Guidelines

4. WASTE
Hazardous waste, waste burned in incinerators and waste for land-fills, DETR Guidelines, SETAC

5. TRANSPORT
Total commuter mileage/no. employees; % of company mileage (excluding commuter) by bike, bus, train, foot.

6. TOTAL ENERGY CONSUMPTION
Electricity from grid, non-renewable fuels, renewable energy

7. ISO 14000
% sites covered

8. PRODUCT
An appropriate indicator might be % of products with eco and/or energy efficiency rating, LCA, and/or product take-back schemes in place

9. RESOURCE PRODUCTIVITY
This one is more difficult, but should stay on the list even if it isn't taken up initially
Substance/volume in: substance/volume out... eco-efficiency

Social Indicators
10. PROFIT SHARING
% of employees benefiting in profit sharing or stock option schemes

11. WELFARE AT WORK
Employee turnover, Health and safety record (number of lost days to accident, illness and injury), Family friendly policies (No. of provisions beyond legal requirements)

12. EQUAL OPPORTUNITIES
Board representation (data already available), women and minorities in line and senior management positions

13. PARTICIPATION AND RIGHTS
% of workforce unionised, participation in management and communications (% satisfied in employee opinion surveys)

14. CIVIL OR EMPLOYEE ACTIONS
No of employee disputes/ strikes etc, community demonstrations and regulatory notices/action

15. COMMUNITY AND PUBLIC POLICY
Community action and giving (£ and kind), progressive policy participation (external endorsement or employee opinion surveys)

16. PUBLIC DISCLOSURE
Externally verified public reporting, frequency: every year,two years, % of operations covered