(Amends to clarify Morgan Stanley’s position is based on views of UK buyside)
Investment banking giant Morgan Stanley has shot to top position for SRI research based on the views of the UK buyside in the latest UKSIF/WeConvene Extel survey in the brokerage firms, socially responsible investment (SRI) research category.
Morgan Stanley, ninth last year in this specific category, came ahead of second-placed Kepler Cheuvreux (third in 2014). Société Générale slipped from first last year to third.
However, Société Générale took the number one position for overall lead pan-European brokerage firm for SRI sustainability research spot based on commissions paid, rising from second place in 2014. Paris-based broker, Kepler Cheuvreux was second, down from first spot last year. Exane BNP Paribas was third, up from fourth in 2014, to complete the French sweep.
In January, Morgan Stanley released a comprehensive global framework for analyzing environmental, social and governance (ESG) risks and opportunities and embedding sustainability factors into valuing companies. The 116-page report, ‘Embedding Sustainability into Valuation’, was put together by the bank’s Sustainable + Responsible investment research team headed by Jessica Alsford.
Other research from the team this year has included an ‘Investor Roadmap on Corruption’ and a look at carbon capture and storage.
Alsford herself moved up from 17th to second in the ‘Investment Individuals – SRI & Sustainability – SRI Research’ category. Société Générale’s Carole Crozat was first, up from second last time and her colleague Yannick Ouaknine, kept third slot.
Morgan Stanley overall has been making a sustainability push of late, issuing a $500m green bond last month and building on the launch of its Institute for Sustainable Investing in 2013.
Kepler Cheuvreux remained top of the brokerage corporate governance category, with Société Générale in second (2014: 2nd) and Exane BNP Paribas in third, up from fifth.
It was the 13th annual survey and the results were announced at an event hosted by Newton Investment Management in London last night. The SRI component of Extel 2015 represents the views of over 350 investment professionals from 25 countries, making it what is claimed to be the most extensive assessment of socially responsible investing (SRI) in the European investment community. Voting was conducted from march 23-April 30. It reflects a contribution from 168 buyside firms and 15 brokerage firms/research houses. Full results, with 2014 positions in brackets, below:Pan-European Brokerage Firm for SRI and Sustainability Research
1 (2) Société Générale
2 (1) Kepler Cheuvreux
3 (4) Exane BNP Paribas
Brokerage Firms – SRI & Sustainability – Corporate Governance
1 (1) Kepler Cheuvreux
2 (2) Société Générale
3 (5) Exane BNP Paribas
Investment Individuals – SRI & Sustainability – Corporate Governance
1 (1) Robert Walker, Kepler Cheuvreux
2 (4) Yohann Terry, Exane BNP Paribas
3 (5) Sudip Hazra, Kepler Cheuvreux
Brokerage Firms – SRI & Sustainability – Integrated Climate Change
1 (1) HSBC
2 (4) Exane BNP Paribas
3 (5) Société Générale
Investment Individuals – SRI & Sustainability – Integrated Climate Change
1 (1) Zoe Knight, HSBC
2 (3) Wai-Shin Chan, HSBC
3 (4) Erwan Créhalet, Exane BNP Paribas
Brokerage Firms – SRI & Sustainability – SRI Research – based on views of UK buyside
1 (9) Morgan Stanley
2 (3) Kepler Cheuvreux
3 (1) Société Générale
Investment Individuals – SRI & Sustainability – SRI Research
1 (2) Carole Crozat, Société Générale
2 (17) Jessica Alsford, Morgan Stanley
3 (3) Yannick Ouaknine, Société Générale
Leading UK Asset Management firm for SRI/ESG
1 (17) Standard Life
2 (12) Fidelity Worldwide Investment
3 (11) Legal & General Investment Management