EFFAS Commission on ESG

Commission on ESG

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EFFAS Commission on ESG Environmental, Social & Governance Issues (CESG)

- Mission Statement –

The EFFAS Commission on ESG Environmental, Social & Governance (CESG) was founded in October 2007 in Vienna.

The objective of CESG is

Facilitating the integration of ESG i.e. Environmental, Social & Governance aspects of corporate performance into investment processes.

CESG is a body of investment professionals from leading European and global sell-side and buy-side firms. Members of CESG are predominantly fund managers, financial analysts, equity sector specialists.

ESG (Environmental, Social, Governance) has been receiving increasing attention of investors and financial analysts. Climate change and CO2, specifically, have been suggested as important risk factors to investment professionals. Hence, topics formerly associated with SRI investors have often been described as in the process of becoming more and more a part of traditional investment analysis (”mainstreaming”).

Appreciating the importance of recognising climate change, the impact of CO2 and the role of Corporate Responsibility, to name but a few, ESG from the perspective of CESG also encompass aspects of longterm viability e.g. R&D spendings, customer satisfaction, or generic Corporate Governance issues.

For CESG in order to gain meaningful data for investment analysis and decision-making corporates need to report all aspects relevant to understanding risk – be it environmental, social, governance issues or data which help to understand market impacts, drivers and product development.

CESG is dedicated to integrating ESG into classic investment research and decision – from the perspective of traditional investors and financial analysts. It is neither SRI-focused nor interested in intervention into issues which corporates must address for themselves e.g. how to organise responsible management. Thus, CESG fills the gap between political and high-level industry initiatives supported by many global investment houses on the one hand, and the need of corporates to enhance corporate reporting.

Encouraging other stakeholder groups to enter into dialogue, CESG will not confine itself to discussions but rather strive to define positions on extra-financials, produce outcome such as papers, recommendations and seek to play an active role in the dialogue with both investment professionals and corporates.

CESG has committed itself to the following goals:

  • Designing and providing training and qualification programmes
    on ESG for investors and financial analysts on how to integrate extra-financial
    information and data from corporates into traditional valuation and financial
    analysis;
  • Increasing transparency between a multitude of extra-financial and ESG activities and initiatives in order to avoid duplication of efforts and increase communication;
  • Instigating research on ESG in order to find the missing link between extra-financial and financial performance;
  • Promoting corporate reporting methods and models for CR, ESG and extra-financials which serve the needs of investors and financial analysts – without adding to the perceived abundance of reporting formats and mandatory reports;
  • Communicate expectations of investment professionals on ESG to senior corporate management, i.e. to the desk of CEO and CFO by entering into dialogue with senior corporate managers;
  • Facilitate dialogue between diverse needs and expectations towards ESG and extra-financials between different functions in the investment markets such as sell-side research, fund management, buy-side research, SRI, consulting.

Members of CESG:

  • Prof Dr Markus Arnold, Universität Bern, Switzerland
  • Prof Dr Alexander Bassen, Universität Hamburg, Germany
  • Dr Daniela Carosio, ECPI S.r.L., Italy
  • Andrea Casadei, BilanciaRSI, Italy
  • Jean-Philippe Desmartin, Oddo Securities, France
  • Alban Eyssette, Ricol Lasteyrie, France
  • Ralf Frank, DVFA e.V., Germany (Co-Chairman)
  • Dr Hendrik Garz, Sustainalytics, Germany
  • Dr Andrea Gasperini, BANCA LEONARDO SPA, Italy
  • Jan Hofmann, InteractiveMedia, Germany
  • Robert Klijn, Responsible Research, The Netherlands
  • Martine Leonard, CM-CIC Asset Management, France
  • Gianluca Manca, Eurizon Capital, Italy
  • Friedrich Mostböck, Erste Bank der Österreichischen Sparkassen AG, Austria (Chairman)
  • Dr René Nicolodi, CAIA, Zürcher Kantonalbank
  • Felix Schnella, ÖKOWORLD LUX S.A., Luxembourg
  • Sébastien Thevoux-Chabuel, Oddo Securities, France
  • Stephane Voisin, Credit Agricole Cheuvreux, France

Contact:
EFFAS CESG
c/o Ralf Frank
DVFA
Phone +49-69-26 48 48 0
eMail rf@dvfa.org