Sell-side brokers
In 2001, the first specialist sustainability research services were set up within 'sell-side' investment research departments. Since then, a number of banks joined the pioneers in this area with each developing their own focus and style – but all centred on the idea that scrutiny of the environmental, social and economic aspects of corporate performance can add value to investment decision-making.
The arrival of the sell-side in SRI brought a number of new aspects and services to the SRI industry, most notably:
- Integrated research – which sets stock and sector research within a sustainability context and corporate sustainability performance within a financial context.
- Corporate access – through which companies and investors are introduced to discuss directly with each other strategic sustainability themes (and progress on ‘corporate responsibility’).
- Stock selection and market commentary – whereby financial analysis is combined with sustainability analysis to select the best investable ideas.
Then, at the end of 2008, Citi, JP Morgan and Merrill Lynch closed their sustainability research teams (...and there were other quieter cuts). This effectively shut down half of the sell-side sustainability research capacity.
Sell-side brokers should be one of the principal beneficiaries of SRI-CONNECT’s Factor Four objective of achieving twice as much SRI activity in half the time. In particular, they are likely to use the following services from SRI-CONNECT:
Market Buzz & Research
- Publish and market their research directly to the global SRI market
- Or publish notifications (or summaries) of research (while keeping the research itself within their own password-protected databases)
- Receive news, research and reports from companies and from other research organisations – also notifications of discussions, events and blogs – all filtered to their own specific interests
- Search the SRI-CONNECT database for research and reports
Profiles, network & discussion
- Present their research capabilities to a global market of SRI investors
- Ensure that suppliers (companies, specialist research providers and others) have a clear understanding of their objectives, capabilities and needs
- Find and filter profiles to identify contacts at companies, analysts at clients and experts at other organisations
- Keep up-to-date with the shifting priorities and interests of their clients
- Arrange company-investor meetings and host other events for clients and potential clients
- Participate in discussion groups with clients and companies on sustainability issues and sectors
- Discuss industry developments with customers, peers and suppliers
- Build and manage their own SRI network via the groups, events and messaging functions
SRI Dynamics discussion papers
- Broken Brokers? – which evaluates what ‘sell-side’ brokers can contribute to SRI and on what terms a viable product offer could be rebuilt.
- Integrated analysis: approaching a tipping point – which reviews how sustainability issues are being used to identify additional sources of investment risk and opportunity within SRI and ‘mainstream’ investment
Registration and membership
- These special considerations govern the access of NGOs to SRI-Connect
- XXXXX - MT to write sth about how NGOs can use the site to develop their profile and track progress
Build profile, distribute research, share ideas
Sell-side brokers can:
- Use Market Buzz to raise the profile of their research and share their opinions with investors and analysts (About Market Buzz | Post research & reports)
- Use the Directory to highlight their organisational and individual capabilities and interests (About Directory | Update your organisation's profile | Update your personal profile)
- Advertise events (About Events | All events)
- Monitor the developing profile of their firm and research with sustainable investment industry
- Response to requests for research made via the Research Marketplace
Learn & interact
Sell-side brokers can:
- Receive research that matches their areas of focus (About Market Buzz | View the latest buzz)
- Learn about the dynamics of the sustainable investment industry (SRI Primer | Ecology of SRI | Trends & opinion)
- Join discussions (All Discussion Groups)
- Make connections & send messages
Other
... and like all members of the network, they can:
- Careers, skills & jobs: Employ others and develop their own skills & careers
- People & networks: Network with, follow and engage with others
Note
These special conditions govern the access of NGOs to SRI-Connect
