Video Friday: IRRI 2013 Awards from SRI-Connect

SRI-ConnectCongratulations to GMI Ratings for winning top place for corporate governance research firms and Kimberly Gladman, Ric Marshall, and Sarah Wilson for top individual awards. Top ranking for SRI research goes to Sustainalytics.  

RESEARCH OVERVIEW – to give readers a taste why they might want to download the full report.

The IRRI survey interviewed four groups with a stake in the SRI & Corporate Governance research value chains:

  •   Asset managers
  •   SRI & CG research providers
  •   Sell-side brokers
  •   Quoted companies

We asked about the nature and quality of products and services in the market, their relationships with each other and their expectations for how research and communications processes could improve in future.

We found that the SRI & CG research markets are complex and rapidly evolving but that they are doing so in a confident, well- supported and optimistic way.

We cannot pretend to summarise effectively our findings and this complex picture in one neat ‘Executive Summary’. Instead we reproduce the headlines from each insight area and encourage you to read in full those that most interest or surprise you.

Market Overview

SRI & CG research markets show strength, sustained interest and promise of more to come

Sell-side brokers believe the UK & France dominate demand for SRI & CG research


Industry thematics support integration; in- house action is limited

Materiality, mainstreaming & integration expectations

Competitive differentiation should drive ‘integrated analysis’ through the valuation process

The ‘most-integrated’ broker research is nominated

Company communications

Analysts want direct contact with companies and integrated reporting

Director investor meetings are highly valued by companies, but too few are happening

SRI communications – companies are taking a well-balanced approach

No clear picture of responsibility for SRI communications

Energy and natural resource companies dominate investors’ meeting wish-lists

Please can I have an Apple … and an ArcelorMittal

Research process – status quo

Coverage is king; but financial focus and analyst access are ascending

Brokers use data, news & ad hoc services from research firms; they make less use of ratings for fully integrated research

SRI indices: Core, Could do better, Considering it & Cowards

Analysts, be transparent, do your homework, tailor your questions, ask them directly & engage deeply with the answers

Little time with companies; little time with clients; perhaps analysts should get out more?

IRRI Survey 2013

The most innovative research products and reports are nominated

Research process – economics

Brokerage communication & commission: 35% shining beacons; 20% lost in the mist; 45% on the murky middle ground

OTC research would drive up quality, diversify research supplier base and increase asset manager spend

Research process – future expectations

Trend towards data & in-house research – rather than ratings

Sell-side brokers to make more use of research firms


‘Bottom-up’ engagement is beating ‘top- down’

Feedback is listened to … usually

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