The idea of Socially Responsible Investment (SRI), which encourages investors to consider companies' Corporate Social Responsibility (CSR) activities as one of their investment criteria, is gaining recognition among investment professionals and significantly influences their investment decisions, according to Daiwa Investor Relations Co.

The consulting firm of the Daiwa Securities Group Inc. conducted a survey on the "Influence of Socially Responsible Investment (SRI) on Japanese Companies" in December 2004. A total of 99 experts responded, including analysts and fund managers dealing with investment funds in securities companies in Japan.

When asked which SRI topics were drawing their interest, 82.7 percent of the respondents cited governance and accountability (compliance, disclosure, etc.), 58.2 percent environmental issues (reduction of environmental risk and prevention of pollution), and 46.9 percent market-response issues (consumer-oriented activities, supplier-oriented activities, customer satisfaction, procurement policies, etc.). (Multiple responses were possible.)

Asked what are important information sources for their SRI-related decisions, 53.4 percent cited interviews and research, 38.6 percent environmental reports, and 17.0 percent sustainability reports.

Asked whether they thought SRI will take root in Japan, 67.7 percent answered in the affirmative. This represents an increase of 7.2 percentage points over the previous survey, conducted in April 2004, suggesting that more and more investment professionals see the spread SRI as a natural trend.



Posted: 2005/05/01 02:04:44 PM
Japanese version

TAG Eco-product/Business , Manufacturing industry , Non-manufacturing industry , System/Law