1. Principles for Responsible Investment, ttp://www.unpri.org/about-pri/about-pri/ (accessed August 2013).
2. hile this paper focuses on examples of the impact that responsible investors have had in the past twenty
years, one notable historic example should be mentioned: the anti-apartheid campaigns that played a role
in advancing democracy in South Africa. To protest against the South African regime’s system of racial
inequality, numerous endowments and other institutions divested their portfolios of companies doing business
in the country, beginning in the 1970s and continuing through the 1980s. Other institutional investors urged
companies operating in South Africa, sometimes through shareholder resolutions, to work for meaningful
change in that country. Investor efforts and advocacy helped create the US domestic political environment
that enabled the passage of the Comprehensive Anti-Apartheid Act in 1986. The South African government
was influenced in part by the growing international outcry over apartheid—and tightening sanctions—to begin
negotiations with black opposition leaders on a transition to the country’s first democratic elections in 1994.
3. reshfields Bruckhaus Deringer, A Legal Framework for the Integration of Environmental, Social, and
Governance Issues into Institutional Investment, UNEP Finance Initiative, October 2005, available at
4. FA Institute, Environmental, Social, and Governance Factors at Listed Companies: A Manual for Investors, May
2008, available at http://www.cfapubs.org/toc/ccb/2008/2008/2.
5. ee, for example, Kimberly Gladman, Ten Things to Know About Responsible Investing & Performance,
Governance Metrics International, GMI Ratings, 2011, available at http://www3.gmiratings.com/wp-content/
uploads/2012/10/GMIRatings_10Things_102012.pdf. The Gladman paper draws in part on an academic paper
summarizing fifty-one influential studies published in English since the 1990s on responsible investment:
Andreas G. F. Hoepner & David G. McMillan, Research on “Responsible Investment”: An Influential Literature
Analysis Comprising a Rating, Characterisation, Categorisation and Investigation, 2009, available at http://
papers.ssrn.com/sol3/papers.cfm?abstract_id=1454793. For analysis of SRI mutual funds, see Javier Gil-Bazo,
Pablo Ruiz-Verdú, & André A. P. Santos, The Performance of Socially Responsible Mutual Funds: The Role
of Fees and Management Companies, 2008, available at http://papers.ssrn.com/sol3/papers.cfm?abstract_
id=1307043; Rob Bauer, Kees Koedijk, & Rogér Otten, International Evidence on Ethical Fund Performance
and Investment Style, Limburg Institute of Financial Economics (LIFE), 2002, available at http://papers.ssrn.
com/sol3/papers.cfm?abstract_id=297882. Additional studies by the academic and broker research firm
Mercer include the following: Marsh, Mercer, Kroll, Guy Carpenter, Oliver Wyman [Mercer], Shedding Light
on Responsible Investment: Approaches, Returns, and Impacts, 2009, available at http://www.law.harvard.
version.pdf; and UNEP Finance Initiative and Mercer, Demystifying Responsible Investment Performance:
A Review of Key Academic and Broker Research on ESG Factors, 2007, available at http://www.unepfi.org/
6. obert Eccles, Ioannis Ioannou, & George Serafeim, The Impact of a Corporate Culture of Sustainability on
Corporate Behavior and Performance, Harvard Business School, July 2013.
7. xamples can be found in Chapter Four.
8. inder, Lydenberg, Domini & Co., the originator of the index, later changed its name to KLD Research &
Analytics. The MSCI KLD 400 Social Index, launched in May 1990, was one of the first SRI indices in the
market. See www.msci.com/products/indices/esg.
9. ee, for example, Dan DiBartolomeo & Lloyd Kurtz, Managing Risk Exposures of Socially Screened Accounts,
1999, available at http://www.northinfo.com/documents/63.pdf; Meir Statman, Socially Responsible Indexes:
Composition, Performance, and Tracking Errors, Santa Clara University, May 2005, available at http://
10. SIF Foundation, Report on Sustainable and Responsible Investing Trends in the United States 2012, 2012.
11. Climate Bond Initiative, Bonds and Climate Change: The State of the Market in 2013, 2013, available at http://
THE IMPACT OF SUSTAINABLE AND RESPONSIBLE INVESTING