|Dear SRI reader,
This week has seen many significant trends on the governance side. A corporate governance equity index was launched on the Swiss exchange by Ethos, the Swiss Corporate Governance Index (ESCGI), and is the first index of this type on the Swiss stock market. The index is designed to weight constituents according to corporate governance best practice criteria, while also taking into account companies’ carbon emissions.
Meanwhile, in the US, a group of asset owners and money managers representing $17 trillion in assets released a framework of guiding principles for U.S. corporate governance and investment stewardship. The aim of this initiative, which brings together all types of investors, is to enable them to speak with one voice on fundamental governance issues, by way of codifying the fundamentals of good corporate governance and establishing baseline expectations for U.S. corporations and their institutional shareholders.
This week was also a good opportunity to reflect on a central theme for Europe: energy. Europe's 'energy union' was originally conceived in response to Russia's incursion into Ukraine. Today, we turn to the US and hold our breath, pondering what the consequences for climate change might be. The road ahead will probably see new alliances being formed and a new geopolitical scenario being drawn. More ambitious targets need to be set to align with the Paris Agreement's energy transition discourse and investments in renewables in Europe need to gain traction once again in order to get there. We are eager to see a strong Europe partnering with a determined China to write an effective energy road map. What Europe needs to do now is join the dots across its priorities and objectives and make it happen.
- Eurosif's Executive Director