Environmental, Social and Governance (ESG) Perspective in Investments panel held
A panel entitled "Environmental, Social and Governance (ESG) Perspective in Investments" was held at Borsa İstanbul Library located at Istanbul Technical University - Taşkışla Building on July 3, 2015. The panel was organized jointly by Borsa İstanbul and BNY Mellon.
The opening speech of the panel, which was hosted by Borsa İstanbul with the contribution of Turkish Investor Relations Society (TÜYİD), was delivered by Dr. Mustafa Kemal Yılmaz, Executive Vice President of Borsa İstanbul and Chairman of the Sustainability Platform. The panel also included presentations from the representatives of Bank Mellon, a global leader in investment management and investment services in more than 100 markets holding $28.5 trillion in assets under custody and/or administration as well as $1.7 trillion in assets under management, and Sustainalytics, an independent ESG research and analysis firm providing service to mainly the institutional investors and big funds.
In his speech, Mr. Yılmaz emphasized Borsa İstanbul's commitment to sustainability principles as the founding member of Sustainable Stock Exchanges Initiative and the signatory of United Nations Principles for Reponsible Investment (UNPRI) and highlighted that Borsa İstanbul was looking to integrate ESG issues to its business processes. Yılmaz also touched upon the contributions and cooperation of Borsa İstanbul in the national and international work carried out on sustainability and talked about the achievements of Borsa İstanbul pioneering the sector such as Sustainability Index, Sustainability Guide for Companies and the work carried out by "Sustainability Platform", which also led the way to organize this panel.
The panel continued with the presentations of Ajla Kharlamova, Vice President at BNY Mellon London and Cecilia Barsk, Advisory Services Manager at Sustainalytics. Morever, shifting of institutional investors and big funds more and more toward companies implementing the ESG principles for reducing their risks and maintaining a fiduciary business understanding was discussed at the panel. Some statistics were also shared with the participants such as the 61 % increase in the global assets under ESG principles focused management in two years reaching 21.4 trillion US dollars in 2014 and the rise in the number of investors pledging not to invest in companies that do not comply with the UNPRI principles reaching 1,400 with 4 trillion US dollars of fund value in 2015 from 100 in 2006.
The participants were informed about the fact that the positive impact of the ESG activities on the long-term performance of the companies was undeniable and 55% of the academic studies carried out in this field proved that there was a positive relation between these two variables while 83% determined a neutral or positive corelation.
The panel was attended by the representatives of Borsa İstanbul, TÜYİD, BNY Mellon ve Sustainalytics temsilcilerinin yanı sıra Akkök Holding, Aksa Enerji, Albaraka Türk, Arge Danışmanlık, Coca-Cola İçecek, Doğuş Otomotiv, Fitch Ratings, Ford Otosan, Garanti Bankası, Global Compact Türkiye, İş Bankası, İş Portföy Yönetim AŞ, Sürdürülebilirlik Akademisi, TAV, THY, Türkiye Sermaye Piyasaları Birliği (TSPB), Türkiye Sınai Kalkınma Bankası (TSKB), Turcas, Yapı Kredi and Yıldız Teknik Üniversitesi.