Global Ethical Finance Forum to host historic discussion on principles and standards for the responsible finance industry

Pioneers from the SRI and faith-based investing segments from emerging and developed markets to converge at much awaited forum in September

Dubai, United Arab Emirates, 18 August 2015: The Global Ethical Finance Forum (GEFF) has announced that it will play host to a particularly critical issue faced by the rapidly growing responsible finance industry: standardization. Experts from leading institutions such as Securities Commission Malaysia (SC), Climate Bonds Initiative, UK Sustainable Investment and Finance Association (UKSIF), Principles for Responsible Investment (UN PRI) and Forum Ethibel will discuss how to engage main street regulators in setting standards, ensure strict compliance with principles, avoid “green washing”, and facilitate crossover within the industry through the development of common standards.

Principles and standards for responsible finance were varied across jurisdictions before the conception of the historic initiative of UN-backed Principles of Responsible Investments (UNPRI). Since its launch in 2006, UNPRI has brought together 1380 investors who manage assets worth US $59 trillion under a single set of 6 principles. The UNPRI framework is widely accepted, but in order to facilitate greater coherence in the industry, it is paramount to have the support and involvement of main street regulators. The issue of enforcement is also under speculation as some signatories have fallen short in implementing them. This is increasingly being realized by UNPRI as it began to implement new procedures to ensure the compliance of its principles via the introduction of a tiered approach. UNPRI recently suggested an overhaul of its principles.

As such, the upcoming GEFF is a truly historic as it will engage key stakeholders from various corners of the world to discuss the subject of standard setting and facilitate the widespread support by the responsible finance industry. The head of policy at UNPRI – Will Martindale will deliver his informed insights in a high profile panel comprising of Ulrika Hasselgren, Chief Executive Officer and Founding Partner, Ethix SRI Advisors; Abdulla Mohammed Al Awar, CEO, Dubai Islamic Economy Development Centre; Jose Maria Fuentes, Former Under Secretary of Sovereign Wealth Funds, International Monetary Fund; Will Fergus Moffatt, Programme Director and Head of Public Policy, UKSIF; and Graham Burnside, Consultant, Shepherd and Wedderburn LLP, and Advisory Board Member, The Islamic Finance Council UK (IFC)

Another impactful panel will be led by Julian Parrott, Partner at Ethical Futures. It will explore the prospect of developing common guidelines and principles to facilitate convergence between Socially Responsible investing (SRI) and faith based investing. A breakthrough step in this regard was the development of an SRI Sukuk framework by SC that enabled the launch of a green sukuk by Khazanah Nasional – the sovereign wealth fund arm of Malaysia. This framework provides a benchmark for the development of comprehensive standards, thereby facilitating the development of products resonating with both the SRI and Islamic finance sectors. Other powerhouses at the session include Herwig Peeters, Executive Director, Forum Ethibel; Zainal Izlan Zainal Abidin, Executive Director, Securities Commission Malaysia (SC); Justine Leigh-Bell, Head of Standards Development, Climate Bonds Initiative; Prof. Dr. Mohamad Akram Laldin, Executive Director, International Shari'ah Research Academy for Islamic Finance (ISRA); and Dr Piotr Konwicki, Senior Lecturer, Finance, University of Bedfordshire, Business School.

Speaking ahead of the historic forum, Justine Leigh-Bell highlighted the synergies between Islamic finance and the green investments: "The rapid growth of the green bonds market, as well as the success of Islamic Finance in the last few years, further underpins the potential for a green sukuk market. But to be successful, two streams of standards are required: Robust standards to ensure the green credentials -- leveraging best practices in the green bond market -- and standards to ensure compliance with Shari’ah Law. The huge potential for green sukuk will allow Islamic investors to more easily address SRI, ESG and faith based investing in their investment choices. It also has the potential to attract non-Islamic investors who otherwise would not have invested in sukuk but invest due to the green credentials"

Zainal Abidin of Malaysia’s Securities Commission reiterated the foundational similarities between Islamic finance and the wider ethical finance industry, and emphasized the need for a unifying framework of principles: “In order to capitalize on these similarities and facilitate the development of both financial disciplines, it may be constructive to seek some degree of convergence through a set of standards that address their common principles and features. In so doing, both Islamic and ethical finance may benefit from a broader range of products and a wider investor and issuer base within a robust framework that promotes greater transparency and market confidence. Nevertheless proper assessment and deliberation among key stakeholders of both disciplines is a critical prerequisite to ensure relevance and applicability of a common framework.”

GEFF 2015 will take place in the prestigious Balmoral Hotel in Edinburgh, one of Europe’s cultural and literary capitals.

To find out more about GEFF, download the comprehensive brochure at www.geff2015.com.