Crisa a step closer to end of the Wild West
BELIEVE IT OR NOT, regulation and responsible business practices will take over from the era of “profit at all costs” and one of the big industries that will be under the spotlight will be institutional investments. Pension funds and investment managers are now formally encouraged to integrate sustainability issues – such as the environmental, social and governance – into their investment decisions through the Code for Responsible Investing in South Africa (Crisa). While we’d love to see certain fund managers being given a good scare out of their comfort zones, it’s likely to be a pretty orderly process.
“The code is the next step to ensuring institutional investors actually implement policies that guide their day-to-day actions when it comes to responsible investing,” says John Oliphant, chairman of the stakeholder committee that drafted the code last year.
Crisa applies to institutional investors, such as pension funds and insurance companies, as the owners of assets, and their service providers, including asset managers and consultants. The effective date for reporting on the application of Crisa is 1 February next year.