Acknowledgements

Batseta Batseta is enormously proud to present the updated version of the Responsible Investment and active Ownership (RIO) Guide, a practical tool to support the retirement fund investment industry to integrate ESG into the investment process. Isacc Ramputa, Chairman, Batseta Batseta Statement The Responsible Investment and Ownership – A Guide for Pension Funds in South Africa […]

What is the difference between PRI and CRISA?

Both the UN-supported Principles for Responsible Investment (PRI) and the Code for Responsible Investment in South Africa (CRISA) offer a set of principles according to which investors are encouraged to make investment decisions and based on which they are encouraged to communicate with their clients and the public regarding these decisions. The PRI is an […]

What are the leading pension funds doing?

The conversation has in the past few years moved from the activity of ESG integration to a focus on the actual real-world results of that ESG integration. The reasons behind this shift include the increasingly obvious evidence of pressing socio-environmental issues, combined with their anticipated systemic impact on economies, business and investment.  As investors are […]

What are examples of E, S and G factors that influence Pension Investments

Although environmental, social and governance issues are often grouped under three separate headings, in reality they are closely connected and interdependent. Good governance provides the basis for managing environmental and social issues; and environmental problems can lead to social issues, and vice versa.   There is no universal standard list of ESG issues that must […]

How well established is the link between ESG and financial performance?

There is now convincing evidence that ESG factors can – and do – affect investment risks and returns across a range of asset classes. There is a large body of research and empirical evidence that illustrates this to be the case.  Importantly, ESG factors are likely to become more material to investment performance over a […]

Is my pension fund legally obligated to consider ESG risk?

If you are a South African pension fund, the answer is Yes. Regulation 28 of the South African Pension Funds Act No. 24 of 1956, which came into effect in July 2011, states that a pension fund’s fiduciary duty “supports the adoption of a responsible investment approach to deploying capital into markets that will earn […]

Is ESG-integration aligned with Fiduciary Duty?

Yes. Regulation 28 makes it clear that ESG integration as part of a Responsible Investment strategy is not only consistent with fiduciary duty, but is in fact a core element of good governance for retirement funds in South Africa: “A fund has a fiduciary duty to act in the best interest of its members whose […]

What is Fiduciary Duty?

Fiduciary duty (or equivalent obligations) exist to ensure that those who manage other people’s money act in the interests of beneficiaries and do not serve their own interests. The most important of these duties are: Loyalty: Fiduciaries should act honestly and in good faith in the interests of their beneficiaries, should impartially balance the conflicting […]

Where is the discussion on ESG and fiduciary duty internationally?

Global consensus has emerged that actively considering ESG is in line with fiduciary responsibility.  According to the UNEPFI report Fiduciary Duty in the 21st Century (2019) and the PRI Regulation Map,  forty-eight of the top 50 global economies now have some form of policy designed to help investors consider sustainability risks, opportunities or outcomes. Examples […]