EIRIS partners with Brazil’s SITAWI and bolsters Latin American presence

EIRIS, a leading environmental, social and governance (ESG) research provider, revealed this August that Brazil’s innovative social and sustainable finance specialist SITAWI had joined EIRIS’ global network. In so doing it expands the ESG research provider’s network’s presence in Latin America where it already has a relationship with Ecovalores, a pioneering sustainability organisation based in Mexico City.

SITAWI, which has offices in Rio de Janeiro and São Paulo but operates across Latin America, joins EIRIS’ international network research and sales partners that spans 11 cities. Established in 1999, SITAWI works with the region’s leading players in social and sustainable finance, and is piloting innovative concepts for the region such as Social Impact bonds and Green bonds.

Besides Brazil and Mexico, the EIRIS network includes pioneering sustainability organisations in Australia, Germany, Israel, Spain and South Korea. Collectively the network promotes EIRIS research products and solution services to investors, and researches companies following EIRIS’ research methodology.

Specifically, SITAWI will contribute to the coverage of Brazilian and Latin American companies within EIRIS’ research universe of over 3,200 entities, and offer the whole suite of EIRIS products in Brazil. The research coverage is anticipated to span around 50 Brazilian and other South American companies.

Stephen Hine, EIRIS’ Deputy CEO, commenting said: “The structure of the EIRIS network is designed to enhance the quality of research and services provided to investors - combining global expertise, local insight and thought-leadership.” He added: “Partnering with regional experts SITAWI enriches the research we offer investors on Brazilian and Latin American companies, and strategically bolsters EIRIS’ presence in the region.”

SITAWI brings to EIRIS long-standing knowledge of the sustainable finance market in Brazil. The organisation’s current team of around twenty has expertise in supporting high-impact social projects, managing philanthropic assets directly (e.g. including managing philanthropic funds for large donors), and in advising financial institutions on incorporating ESG issues into business strategy and investment analysis.

Gustavo Pimentel, Managing Director (Research & Advisory) at SITAWI, who was voted the second best ESG analyst globally by investors in the Extel IRRI 2013 rankings, said: “Investors will now have access to ESG research on Brazilian and Latin American companies of the greatest breadth, depth and with local insight.”

Furthermore, the partnership will also “enable our local investors to access EIRIS Global Platform” - effectively a seamless delivery channel to global ESG research according to Pimentel. “Practising responsible investment in the region has never been easier,” he added. Currently Pimentel chairs the ESG Integration Working Group of the Principles for Responsible Investment (PRI) Brazil Network.

Although Brazil is the seventh largest economy in the world, it still ranks 85th in the Human Development Index. That said, BM&F BOVESPA, the São Paulo stock exchange, has played a proactive and influential role in raising ESG standards in the Brazilian market for the past decade. In December 2005 it launched its Corporate Sustainability Index (ISE), which was at the time was only the second emerging market sustainability index in the world.

The ISE index, which measures the total return on a theoretical portfolio of up to 40 stocks issued by companies that demonstrate a high level of commitment to corporate sustainability and social responsibility, has been instrumental in stimulating the development of other emerging market sustainability indices in India and the Middle East.

EIRIS currently provides responsible investment services to over 200 clients including asset owners, asset managers, banks, wealth managers and charities globally.

For more information on EIRIS see: www.eiris.org