BGI employs Global Risk Management in SRI drive
UK- Barclays Global Investors has appointed risk management and research company Global Risk Management (GRM) to carry out social, ethical and environmental research on the European companies it invests in.
The appointment is part of BGI’s corporate governance policy of active shareholder engagement. BGI claims persuading companies to adopt social, ethical and environmental policies protects their reputation and brand and therefore safeguards shareholder value.
GRM will be look at companies’ environmental track records as well as their attitude towards human rights and bribery.
Says Marian Collins, head of corporate governance at BGI: “tackling socially responsible investments through shareholder engagement can reduce risk to shareholder assets. Active engagement with companies rather than selling and walking away can become a force for change.”
The move follows a similar deal struck recently between US group, State Street Global Advisors and London-based Friend’s Ivory & Sime, under which the latter will provide the former with SRI research.