Integrating sustainability information into the investment process ING Bank Duurzaam Beleggen Jaap van den Ende Amsterdam October 29 th, 2008
Content Introduction Gathering of information ING sustainability database DING Screening on database Client, investor Conclusion Private Banking 2
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 Private Banking 4
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 Private Banking 5
Information Annual Reports Company websites News sources NGO websites CSR reports DING
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 5: Final company score & profile Step 4: Industry peer review & consistency check Monthly updates Step 3: Conduct company interview Step 1: Collect company data Step 2: Check press, NGOs, experts
Research Framework Business ethics Bribery Corruption Business principles Community Corporate Governance Philanthropy Accountability Independence Community Remuneration involvement Volunteer programs Corporate Customers Governance Products Accountability quality Independence Remuneration Customers Employees Workplace Products standards Empowerment quality Customer Health & satisfaction Safety Diversity Environment Employees Resource use Workplace Waste standards Pollution Products Health & Life safety Cycle Diversity Environment Human rights & Contractors Resource use Child Waste labour Standard Pollution of Product livinglife cycle Contractors Child labour Standards of living Human rights Transparency & Reporting Strategy & Policy Management Performance c c Profile 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 Sustainability Database Screening 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 Private Banking 17
Negative check Exclusion NFI ++, +, = Private Banking 18
Steps in investment process Gathering of information ING Sustainability Database Screening Client, investor on database
Positive check with NFI NFI ++, +, = NFI - Private Banking 20
Putting it al together Exclusion ING SRI ING Socially Responsible Investments Index NFI - Private Banking 21
ING SRI index is a gem Private Banking 22
Steps in investment process Gathering of information ING Sustainability Database Screening on database Client, investor
What is material for SRI Investors? Private Banking 24
Relevance is material for SRI Investors Private Banking 25
CONCLUSION Private Banking 26
Information is available Annual Reports CSR reports Exclusion ING SRI ING Socially Responsible Investments Index NFI -
Don t get trapped by only chasing money 28
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. Private Banking 31