Integrating sustainability information into the investment process
ING Bank Duurzaam Beleggen Jaap van den Ende Amsterdam October 29th, 2008
Content
• Introduction • Gathering of information • ING sustainability database DING • Screening on database • Client, investor • Conclusion
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Steps in investment process
Gathering of information
ING Sustainability Database
Screening on database
Client, investor
Profit
•
“No business will survive if not making a profit. But it will neither survive if it will just want to make a profit.”
Henry Ford
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Sustainable Development
• is development that • “meets the needs of the present • without compromising the ability of future generations to meet their own needs.” Our common Future, Commissie Brundtland, Verenigde Naties, 1987
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Information Annual Reports
Company websites
News sources
DING
NGO websites
CSR reports
10th Dutch seminar on Communicating Sustainability: "Greenwash versus Clean Green"
Communicating Sustainability to investors Utrecht, 29 October 2008
Ronald Lubberts Dutch Sustainability Research
Background DSR Independent ESG research firm / data provider Co-founder SiRi Company Partnership with KLD, JanziResearch, SIRIS, Scoris, AIS Leading provider of ESG services to investors in Benelux market Serving financial institutions in Europe
Services DSR Integrated data base Research developed markets Research emerging markets Bond research, Country research Ratings Controversies Advanced screens (Controversial Weapons Radar; Global Compact Compliance Service)
Engagement
Research Process Industry reports
Industry specific indicators
Step 1: Collect company data
Step 5: Final company score & profile Monthly updates
Step 2: Check press, NGOs, experts
Step 4: Industry peer review & consistency check Step 3: Conduct company interview
Research Framework Business ethics Bribery Corruption Business principles
Community Corporate Governance
Corporate Customers Governance Products Philanthropy Accountability Accountability quality Independence Community Independence Remuneration involvement Remuneration Volunteer programs
Transparency & Reporting
c
Customers Employees
Environment Employees Environment Human rights & Workplace Resource use Contractors Products standards Workplace Waste Resource use Empowerment quality standards Pollution Child Waste labour Customer Health & Products Health &Life Standard Pollution of satisfaction Safety safety Cycle Product livinglife Diversity Diversity cycle
Strategy & Policy
Management
c Profile
Contractors
Child labour Standards of living Human rights
Performance
c
Research characteristics Fully transparent research process Continous updates and alert service Stakeholder approach Industry specific research Broad information base: Company, NGOs, news services, experts
No questionnaires, direct research only Dialogue with companies Stringent QMS with detailed sourcing
Steps in investment process
Gathering of information
ING SustainabilityScreening Database on database
Client, investor
DING
Duurzaam ING Database with company information on sustainability • Positive screening, Best in Class • Negative screening, exclusion on criteria • Non Financial Indicator (NFI) • Sustainability scan for investment portfolios
Positive check
Best in Class
Below average
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Negative check
Exclusion
NFI ++, +, =
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Steps in investment process
Gathering of information
ING Sustainability Database
Screening Client, investor on database
Positive check with NFI
NFI ++, +, =
NFI -
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Putting it al together
ING SRI Exclusion
ING Socially Responsible Investments Index
NFI -
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ING SRI index is a gem
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Steps in investment process
Gathering of information
ING Sustainability Database
Screening on database
Client, investor
What is material for SRI Investors?
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Relevance is material for SRI Investors
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CONCLUSION
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Information is available Annual Reports
CSR reports
Exclusion
ING SRI ING Socially Responsible Investments Index
NFI -
Don’t get trapped by only chasing money……
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Up side down tree
Be aware of dangers….
DISCLAIMER
Deze presentatie van ING Bank N.V. (“ING”) is uitsluitend bedoeld om u informatie te geven over duurzaam beleggen. Deze informatie mag niet hergebruikt, gedistribueerd of gepubliceerd worden door enig persoon voor enig doel zonder de uitdrukkelijke toestemming van ING. Alle rechten zijn voorbehouden. Hoewel ING de grootste zorg heeft besteed aan de informatie zoals opgenomen in deze presentatie aanvaardt ING geen aansprakelijkheid voor de volledigheid en/of juistheid van de presentatie. Deze presentatie vormt geen uitnodiging tot het aangaan van welke overeenkomst of verbintenis dan ook. ING maakt onderdeel uit van ING Groep N.V. (“ING Groep”). Onderdelen van ING Groep mogen adviseren of diensten aanbieden (inclusief beleggingsadviezen) en optreden als belegger in aandelen of andere effecten. Om belangentegenstellingen zoveel mogelijk te voorkomen heeft ING Groep maatregelen getroffen om een onafhankelijk optreden van haar bedrijfsonderdelen te waarborgen.
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