SA Institutional Investors To Adapt To New Playing Fields

South Africa's institutional investors have been challenged to conduct their business on a new playing field following publication of the Draft Code for Responsible Investing.

David Geral, a partner at corporate law firm Bowman Gilfillan, alerted delegates to a recent seminar in Johannesburg of the Code's main principles:

• Institutional investors should incorporate environmental, social and governance (ESG) considerations into their investment analysis and activities as part of the delivery of superior risk-adjusted returns to the ultimate beneficiaries;
• Institutional investors should demonstrate their ownership approach in their investment arrangements and activities;
• Where appropriate, institutional investors should consider a collaborative approach to promote acceptance and implementation of the Code's principles, and those of other codes and standards applicable to institutional shareholders; and