May 17, 2013
By Amy Poszywak
More than half of sustainable, responsible, impact, or SRI, investment industry professionals say retail and institutional investors, in the face of growing signs of climate change, are expressing interest in portfolios that are free of fossil fuels, according to the results of a recent survey.

The survey, conducted by First Affirmative Financial Network LLC, a financial organization that offers asset management and consulting services to individual and institutional investors that focuses on sustainability, was conducted online April 22-May 8. The survey of 12 questions focused on fossil-fuel portfolios and related investor concerns, and was answered by 466 licensed investment professionals, asset managers, investors and representatives of SRI investment companies, community development financial institutions and social research/proxy voting organizations.

The survey found that 77% of respondents see growing risks for investors associated with fossil-fuel company holdings in their investment portfolio; 30% of respondents either already do or are preparing to offer fossil-fuel-free portfolios to investors; and 63% believe that investors in the next 10 years will start divesting in meaningful numbers from fossil-fuel companies due to the implications of climate change from such energy sources.

The question of what kind of entities qualify as a "fossil-fuel company," First Affirmative President Steve Schueth said in a May 17 interview, can be tough to answer, but starts with a list of 200 companies identified by 350.org, an international climate campaign, that have proven reserves of coal, oil and gas in the ground. The organization's co-founder and chairman is Bill McKibben, an author, environmentalist and activist.

Schueth said the basic premise of the group's definition is companies that have fossil fuel reserves in the ground that they intend to dig up and burn. "As you start talking to clients about it, though, the interesting thing is that the conversation often goes beyond those companies. It goes to, 'Well what about the utilities that burn this stuff? Maybe we don't want to own those either.'"

The conversation also occasionally moves to chemical companies because the majority of chemicals used in modern society are derivatives of fossil fuels, primarily oil, he said. Ultimately, Schueth said, the definition can be extended even further through the argument that every company falls into the fossil-fuel category as fossil fuels are often the source behind everyday activities like heating and transportation.

"You can take this to a very, very wide level, but the answer is that [the definition] depends on the client, at least from our perspective," he said. "We don't know how the people who answered the questionnaire
were thinking about this."

What First Affirmative does know is that its survey represents the first attempt to take the pulse of the issue, Schueth said. First Affirmative's clients' interest in examining how their investments relate to fossil fuels and ultimately climate change has gained attention in the past year.

"You have clients walking in wanting to talk about this," he said. "And those of us in the industry, we haven't done very much at this point to bring this to their attention. They're bringing it to our attention. So what you know is that this 350.org campaign … has touched some live wires out there."

Additionally, 67% of respondents said they believe 2013 is the right time for investors to access and perhaps alter their approach to investing in traditional energy companies, and 40% said they worry about
increased diversification risk in portfolios free of fossil fuels in their role as a fiduciary to clients.

"The survey findings strongly suggest that fossil-fuel-free investing is one of the SRI industry's next big issues," Schueth said in a news release. "Fossil-fuel-free investing is already becoming a nationwide movement, and it's likely to gain momentum as the impacts of climate destabilization are felt far and wide."

The survey was released in advance of First Affirmative's annual SRI conference, which is scheduled to take place in October in Colorado Springs, Colo.

NEW YORK CITY AND COLORADO SPRINGS - May 16, 2013 - Over half of sustainable, responsible, impact (SRI) investment industry professionals say that retail investors (65 percent) and institutional investors (53 percent) are currently expressing interest in fossil fuel-free portfolios in the face of growing signs of climate change, according to First Affirmative Financial Network's Fossil Fuels Divestment Survey.

Released in anticipation of the 24th annual SRI Conference (http://www.SRIconference.com)October 28-30, 2013 at The Broadmoor in Colorado Springs, Colorado, the online survey was conducted by First Affirmative Financial Network between April 22 and May 8, 2013.  More than 2,000 SRI industry professionals were asked to weigh-in on 12 questions regarding fossil fuel-free portfolios and related investor concerns.  The survey was completed by 466 licensed investment professionals, asset managers, investors, and representatives of SRI investment companies, community development financial institutions, and social research/proxy voting organizations.

Other key survey findings include:

• 77 percent see growing risks for investors associated with fossil fuel company holdings in their investment portfolios.

• 30 percent of those surveyed either already do - or are getting ready to - offer fossil-fuel free portfolios to investors.

• 63 percent believe that investors will in the next 10 years start divesting in meaningful numbers from fossil-fuel companies due to climate change implications of such energy sources.

First Affirmative President Steve Schueth, producer of The SRI Conference, said:  "The survey findings strongly suggest that fossil fuel free investing is one of the SRI industry's next big issues.  Ours is an incredibly dynamic field, and as we develop the agenda for the 24th annual SRI Conference in October, we are working hard to present speakers and sessions focused on the most timely, important, and pressing topics.  Fossil fuel free investing is already becoming a nationwide movement, and it's likely to gain momentum as the impacts of climate destabilization are felt far and wide.

In addition, the survey also found that:

• 67 percent of respondents believe that 2013 is the right time for investors to assess and perhaps alter their approach to investing in traditional energy companies.

• 40 percent of those surveyed worry about increased diversification risk in fossil fuel free portfolios, in their role as a fiduciary to clients.

• 24 percent of those surveyed said they would be able to adequately replace the most carbon-intensive fossil fuel companies in portfolios they managed/advised with holdings that exhibit similar risk/return characteristics.

 The full survey findings are available online at http://216.30.191.148/sricfossilfuelsurvey.pdf.

 About The SRI Conference

The 24th annual SRI Conference (http://www.SRIconference.com), the leading North American forum for investors and investment professionals involved in sustainable, responsible, impact (SRI) investing, will be October 28-30, 2013 at The Broadmoor in Colorado Springs, Colorado.  Please contact Krystala Kalil, at 888-774-2663 or krystala@SRIconference.com.

 About First Affirmative Financial Network

First Affirmative Financial Network, LLC () is an independent Registered Investment Advisor (SEC File #801-56587) offering investment consulting and asset management services through a nationwide network of investment professionals who specialize in serving socially conscious investors. First Affirmative produces The SRI Conference (http://www.SRIconference.com).

MEDIA CONTACT

Patrick Mitchell at 703-276-3266 or pmitchell@hastingsgroup.com.

Three Researchers Win 2012 Moskowitz Prize for Outstanding  Research in the Field of Sustainable, Responsible, Impact Investing at The SRI Conference

Colorado Springs, CO.///October 3, 2012///Using 10 years of privately compiled data, three leading academics have tied positive market performance to corporate social responsibility (CSR) activities at major publicly traded U.S. companies.  Their research has netted them the Moskowitz Prize for Socially Responsible Investing, the only global prize recognizing outstanding quantitative research in the field of sustainable, responsible, impact (SRI) investing.

Pietra Rivoli, deputy dean and professor, McDonough School of Business at Georgetown University and a longtime Moskowitz judge, presented the 2012 Moskowitz prize to the winners last night at the 23rd SRI Conference.  The prize-winners are: Elroy Dimson, emeritus professor of finance, London Business School; Oğuzhan Karakaş, assistant professor, Carroll School of Management, Boston College; and Xi Li, assistant professor, Fox School of Business, Temple University.

Dimson, Karakaş, and Li examined highly intensive shareholder engagements on environmental, social, and governance issues from 1999 to 2009.  Their findings suggest that CSR activism creates shareholder value, consistent but in a different scale compared with traditional shareholder activism or hedge fund activism.

The winning paper, "Active Ownership," was previously presented as a working paper titled, "Activism on Corporate Social Responsibility," at theInquire Europe & Inquire UK 2012 Spring Seminar and Financial Management Association 2012 European Conference.  The research shows that the average one-year abnormal return (also known as the excess or "alpha" return) after initial engagement is 1.8 percent-just in-between the excess return of 4.4 percent for successful CSR investor engagements with U.S. companies, and zero for unsuccessful ones.

The positive returns documented were most pronounced for engagements on the themes of corporate governance and climate change.  Firms with more reputational concerns and higher capacity to implement CSR changes were found more likely to be targeted by CSR activists, and more successful in achieving the engagement objectives.  Targeted firms experienced improvements in operating performance, profitability, efficiency, and governance indices after successful engagements.  The paper's findings provide new evidence on the value of shareholder activism on CSR issues.

Dozens of academic studies were submitted over the summer 2012 to be considered for the Moskowitz Prize.  Lloyd Kurtz, lecturer at the Berkeley-Haas Center for Responsible Business, Moskowitz Prize administrator, and chief investment officer at Nelson Capital Management, said:  "We had a very competitive year in 2012, with nine judges reviewing over 40 studies in detail, so the winning team can take credit for a very strong showing, and a very strong research effort."

The Moskowitz Prize encourages and recognizes outstanding academic research on matters germane to the field of responsible investing.  The $5,000 Moskowitz Prize is named for Milton Moskowitz, one of the first investigators to publish comparisons of the financial performance of screened and unscreened portfolios.

Since its inception in 1996, the Moskowitz Prize has been awarded annually at the SRI Conference, the largest and longest running conference serving investors and investment professionals in the sustainable, responsible, impact (SRI) investment industry in North America.  The SRI Conference is produced by First Affirmative Financial Network, and the Moskowitz Prize is managed by the Berkeley-Haas Center for Responsible Business.  More information about the prize is available at: http://responsiblebusiness.haas.berkeley.edu/programs/moskowitzresearchprogram.html.

The 2012 Moskowitz Prize sponsors include Calvert Group, First Affirmative Financial Network, Nelson Capital Management, Rockefeller and Co., Neuberger Berman, and Trillium Asset Management.

About the Center for Responsible Business at The Haas School of Business, UC Berkeley

The Center for Responsible Business (http://responsiblebusiness.haas.berkeley.edu) is an "action tank" that builds on the Haas School of Business' (http://www.haas.berkeley.edu) culture of innovation and UC Berkeley's tradition to run-not walk-towards social progress.  Building upon nearly a decade of research, teaching and industry engagement, the Center for Responsible Business brings together students, company leaders, and forward-thinking faculty to redefine good business for a sustainable future.

About The SRI Conference

The SRI Conference (http://www.SRIconference.com) is the premier forum for investors and investment professionals engaged in the sustainable, responsible, impact (SRI) investment industry.

About First Affirmative Financial Network

First Affirmative Financial Network, LLC () is an independent Registered Investment Advisor (SEC File #801-56587) offering investment consulting and asset management services through a nationwide network of investment professionals who specialize in serving socially conscious investors.  First Affirmative produces The SRI Conference (http://www.SRIconference.com).

Media Contacts

Patrick Mitchell, The Hastings Group, 703-276-3266 or pmitchell@hastingsgroup.com

Jo Mackness, Haas School of Business, 510-642-6099 or mackness@haas.berkeley.edu

Released One Month Ahead of Major Industry Event, The 2012 SRI Conference Survey Finds Impact Investing Likely to Fuel SRI Growth Over Next 12 Months; More Institutions Seen Warming to SRI/ESG Focus with Impact Investing in Forefront.

COLORADO SPRINGS, Colo. - September 5, 2012 - If you think that SRI is only about investing in socially screened mutual funds, you haven't been paying enough attention.  The rapid rise of "impact investing" is going to have a big impact on the world of sustainable, responsible, impact (SRI) investing in the coming year, according to The 2012 SRI Conference Survey of more than 200 SRI professionals.

The first annual survey conducted by First Affirmative Financial Network is being released today, one month ahead of The 2012 SRI Conference (formerly known as SRI in the Rockies), the largest annual gathering of responsible investors and investment professionals in North America.  Set for October 2-4, 2012 in Connecticut, the 23rd annual SRI Conference is on the East Coast for the first time, in close proximity to New York City, Boston, and Washington, D.C.  For registration and other information, go to http://www.SRIconference.com.

The term "impact investing" encompasses a range of approaches-including microfinance and private equity in developing markets-that allow institutions and individual investors to get involved in solving specific social and environmental problems while also generating a return.  In some cases, impact investing is designed to achieve market returns; in other cases, a portion of the returns is devoted to achieving a greater social impact.

 The August 2012 online survey of 218 SRI/ESG professionals includes the following key findings:

• The #1 growth area for SRI in the next 12 months identified by the largest number of respondents is "impact investing" (35 percent), while another 29 percent see the biggest growth taking place in "screened investing/ESG integration."
• More than three out of five respondents (62 percent) expect "institutional investor acceptance of SRI/ESG to improve in the next 12 months."
• What will it take to get wider institutional acceptance of SRI?  The top three responses are:  "increased emphasis on impact investing for institutions that have 'making a difference' as part of their mission" (47 percent); improved performance (43 percent); and "increased emphasis on community investing" (35 percent).
• More than three out of four respondents (78 percent) say "SRI is growing and will continue to do so."  Only 8 percent say SRI is "headed for a leveling off or a slowdown."

First Affirmative President, Steve Schueth, producer of The SRI Conference, said:  "After the recent financial crisis, more and more investors have hungered for a way to have a more direct connection between their money and the impact it is having in the world.  This survey shows that the sustainable, responsible, impact investment industry is innovative and vibrant-as vital for institutions and individual investors today as it was decades ago during the fight against Apartheid.  Impact investing is the latest way that investment professionals who work with socially conscious investors are helping to deliver positive returns as well as positive change-for the common good."

Other key 2012 SRI Conference Survey findings include the following:

• SRI investment performance is expected to "do about as well as the overall market" (46 percent) and nearly a quarter of respondents (23 percent) expect it will do "slightly better than the overall market."
• What are the three biggest roadblocks to wider individual acceptance of SRI?  The top three responses are:  "perceptions about performance" (74 percent); "investor confusion over the growing number of terms used to describe SRI (e.g. 'impact investing,' 'sustainable investing,' 'socially conscious investing,' 'green investing') (39 percent); and "the slow economy" (34 percent).
• The most prevalent areas of SRI career focus are:  screened investing/ESG integration (69 percent); shareowner advocacy (36 percent); community investing (44 percent); and impact investing (26 percent).
• Nearly half (46 percent) of the respondents have been in the SRI/ESG field for a decade or longer, with 36 percent logging 10-25 years of service, and another 10 percent active more than 25 years.  Another 31 percent have been in the field for three-10 years.  Nearly three-quarters of those responding (71 percent) would "advise a new financial professional to enter the (SRI) field," and almost exactly the same portion of respondents would "make the same career decision if they could do it all over again."
• To view complete survey results click here.

About the SRI Conference

The SRI Conference (http://www.SRIconference.com) is the leading forum for the sustainable, responsible, impact (SRI) investment industry in North America.  For more information about the agenda, speaking, or sponsorship, please contact Krystala Kalil, at 888-774-2663 or Krystala@SRIconference.com.  Register at http://www.sriconference.com/register.jsp.

About First Affirmative Financial Network

First Affirmative Financial Network, LLC () is an independent fee-only Registered Investment Advisor (SEC File #801-56587) offering investment consulting and asset management services through a nationwide network of investment professionals who specialize in serving socially conscious investors.  First Affirmative produces The SRI Conference, the premier gathering of responsible investors and investment professionals in North America.

Media Contact

Patrick Mitchell, (703) 276-3266 or pmitchell@hastingsgroup.com.

Heartland Financial USA, Inc. announced Miller's retirement from his position as executive vice president and chief investment officer in February, effective July 31st. Miller began working at Heartland Financial subsidiary, Dubuque Bank and Trust, in 1984. Prior to his work at Heartland, Miller was a professor and chairman of the accounting and business departments of Loras College in Dubuque, Iowa.

While at Heartland, Miller advocated and led the creation of a sustainable, responsible, impact (SRI) investing policy within the company's wealth management group, making Dubuque Bank and Trust one of the first banks in the nation to develop and use such a policy. Additionally, Miller initiated improvements to Heartland's investment management systems. Miller has earned a national reputation as a skilled investment strategist with deep understanding of economics.

First Affirmative's Chief Executive Officer, George Gay, said of Miller: "Since his first of twenty-one annual Economic Forecasts at the 1991 SRI Conference [formerly SRI in the Rockies], Mel has earned the trust and confidence of SRI specialists nationwide. His characteristic blend of knowledge and humor has made him one of our most popular speakers. We look forward to his participation in investment management, his writing for both our advisors and clients, and his support in making all aspects of our business more successful."

Miller said of his new position: "I look forward to joining such a forward-looking quality organization as First Affirmative Financial Network while enjoying the flexibility of retirement. Over the years, I have been impressed by the manner in which they assist their clients who want to make a difference with their investment dollars."

After August 1st, Miller can be reached at mmiller@firstaffirmative.com.

Nobel Laureate and "One of 12 Greatest Entrepreneurs of Our Time" to Speak on Opening Night of Gathering in Connecticut Near NYC and Boston.

Colorado Springs - May 2, 2012 - Nobel Laureate Professor Muhammad Yunus, who is widely regarded as the father of microcredit and also is the founder of Grameen Bank, will be the keynote speaker on the opening night of the 23rd annual SRI Conference on Sustainable, Responsible, Impact Investing ("The 2012 SRI Conference") taking place October 2-4, 2012 at the Mohegan Sun Conference Center in Connecticut.

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SRI-Connect: Meet ... Steve Schueth

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Colorado Springs - April 25, 2012 - The Center for Responsible Business at UC Berkeley's Haas School of Business has announced a call for papers for the 17th annual Moskowitz Prize-the only global award recognizing outstanding academic research in the field of sustainable, responsible, impact (SRI) investing.

This year's prize-winning study will be announced at the 23rd annual SRI Conference (formerly SRI in the Rockies) on October 2, 2012.

To be considered for the Moskowitz Prize, studies must be submitted by June 30, 2012. The $5,000 prize competition is open to authors of studies relevant to responsible investing. Studies may be published or unpublished, but unpublished studies should be of a quality appropriate for publication in a peer-reviewed academic journal. Details about the submission process can be found at: http://bit.ly/JPAnGx.

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COLORADO SPRINGS, CO. - NEWS ADVISORY - Robert F. Kennedy, Jr., president of the Waterkeeper Alliance and senior attorney for the Natural Resources Defense Council (NRDC), is joining the growing list of distinguished presenters at the 23rd annual SRI Conference on Sustainable, Responsible, Impact Investing.

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CHICAGO FINANCIAL PROFESSIONALS TO GET "CRAM COURSE" IN GREEN INVESTING

Morningstar, Keel Asset Management, and Horizon Investment Services to Provide Local Perspective.

CHICAGO - NEWS ADVISORY - Leading socially responsible investment advisory firm First Affirmative Financial Network today announced that Chicago will be the next site for a "BaseCamp SRI" conference.

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George Gay is fond of analogies. On the eve of the forthcoming SRI in the Rockies event, he explains his choice of a presentation entitled Black Swans and Fat Tails. "Historically people did not believe black swans existed and even when their existence was proven, they were still very rare. What we have learned after witnessing two 40 per cent drops in the US Stock Market over a single ten-year period is that much current thinking on how markets perform is out of date. Statistically, each of these events should occur less often than once in a century and the message must be that extreme events, particularly negative extreme events, are far more common than previously thought and that the risk inherent in the markets is far higher than the statistical premise that a lot of forecasting is based on."...

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Hundreds of thought leaders and experts will gather at the Sheraton New Orleans October 2-5, 2011 to collaborate and discuss opportunities in the growing world of green, sustainable, and responsible investing.

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