CIAO DATE: 02/2011
November 2010
This paper summarises a two-year research engagement project with the investment community on their role in contributing to poverty reduction and sustainable development. Oxfam undertook this research because we recognise the enormous influence investors have on poverty and development both as capital allocators – where and in what they invest - and as major influencers of companies and public policy. Investors have in the past institutionalised some of Oxfam’s calls and contributed to improving companies’ performance on access to medicines, labour standars and climate change. They did so as they were concerned about the impact of those companies’ actions (or inactions) on the companies’ financial bottom line over the long term. At the same time, we recognise that financial market pressures for ever higher profits over short timeframes remains a barrier for companies adequately to manage negative social and environmental impacts. The role of investors in tackling social development issues is becoming increasingly important as the centre of gravity of the investment industry is moving slowly but inexorably towards emerging markets, including the growing interest within the investment community in natural resources ,such as farmland, on which the livelihoods of millions of poor people depend. Oxfam has engaged with over 80 investors across Europe and United States to analyse jointly the role of institutional investors through the lenses of seven poverty-related topics.
Resource link: Better Returns in a Better World: Responsible investment: overcoming the barriers and seeing the returns [PDF] - 411K