How is your EHS & Sustainability Data being used? Robert Dornau Denver, Oct 26 th, 2016

Transcription

1 How is your EHS & Sustainability Data being used? Robert Dornau Denver, Oct 26 th, 2016

2 Introduction 2

3 The Corporate Sustainability Assessment Source: RobecoSAM 3

4 Scoring Approaches used in the CSA The CSA uses a variety of scoring approaches to turn quantitative and qualitative information into sustainability scores Transparency / Disclosure scoring vs. Performance Scoring Transparency/ Disclosure scoring awards points for companies being able to provide qualitative or quantitative information. No value judgment is placed on the actual answer provided, i.e. RobecoSAM does not take a view on what is a good or a bad answer Performance scoring the score is driven by comparing the answer to a predefined value, which could be industry best-practice, an industry average, or the companies own answer of a previous year Public vs. non-public information Public disclosure - increasingly RobecoSAM asks for information to be available in the public domain. If specifically asked for, information is only scored if it is available publically Non-public information in the event that RobecoSAM asks for either public or nonpublic information, public disclosure is awarded more points (e.g. tax policy) 4

5 RobecoSAM CSA Overview of Scoring Types Scoring Type Description Sample Questions Public Disclosure Breaches of codes of conduct Transparency Performance Availability of qualitative or quantitative information Scoring of qualitative or quantitative data based on predefined thresholds or expectations Trend scoring on company s own performance over time Tax Strategy Disclosure of Median Compensation of All Employees & CEO Compensation Reporting Materiality Board Structure Operational Eco-Efficiency Scoring of data compared to Lost Time Injury Frequency Rate other companies within industry Employee Turnover Rate 5

6 Company Benchmarking Scorecard - sample Source: RobecoSAM 6

7 RobecoSAM data on Bloomberg - Company Analysis Page Source: Bloomberg 7

8 RobecoSAM data on Bloomberg Industry Comparison Source: Bloomberg 8

9 RobecoSAM Benchmarking Database - Screenshot Source: RobecoSAM 9

10 What information is shared? Bloomberg RobecoSAM Benchmarking Database Access Bloomberg licensees Companies invited to participate in RobecoSAM s CSA To find out more go to Data Relative ranks of companies within their industry (percentile ranks) Relative ranks, absolute ranks as well as 4-year trend for the score of your own company against your industry s score distribution Coverage All 60 industries Company s own industry Depth Total and dimension (Criteria as of Dec 16) Total, dimension, criteria 10

11 Financial impact

12 Use of CSA scores in indices Use of total score for selection or weight Dow Jones Sustainability Index family (DJSI world and 8 regions) S&P ESG index family (S&P 500 as well as other global and regional indices) Use of selected criteria scores S&P Long Term Value Creation, global JPX/S&P CAPEX & Human Capital Index Use of impact data S&P fossile fuel free and carbon efficient indices (for 7 main regional indices incl. S&P 500) 12

13 The Sustainability Factor Low risk factor risk / return profile of Sustainability Factor Momentum Earnings Yield Beta R e t u r n Sustainability Score Growth Dividend Yield Book-to-Price Size Leverage Risk Residual Volatility Note: Factors shown with negative return like Residual Volatility contribute positively to a portfolio s return when the respective portfolio exposure is negative, ie, when a portfolio has positive exposure to low-volatility. Source: RobecoSAM 13

14 Performance of selected indices S&P 500 ESG S&P Long Term Value Creation (LTVC), Global Source: S&P Dow Jones Indices (SPDJI.com) 14

15 Key take aways RobecoSAM s Corporate Sustainability Assessment (CSA) uses a unique methodology to translate intangible sustainability information into industry specific sustainability performance scores The CSA scores are not just used for the selection of companies into Dow Jones Sustainability Indices, but also for several other indices with billions on USD in related investment vehicles. Based on the wealth of information available from 17 years of CSA data collection, RobecoSAM was able to show the value of sustainable business performance to predict future stock performance of companies in the form of a Sustainability Factor with a low risk/return profile. 15

16 Contact us in case of questions Robert Dornau Senior Manager Sustainability Services +41 (0) RobecoSAM Headquarters: Josefstrasse 218 CH-8005 Zürich Switzerland 16

17 Disclaimer No warranty This publication is derived from sources believed to be accurate and reliable, but neither its accuracy nor completeness is guaranteed. The material and information in this publication are provided "as is" and without warranties of any kind, either expressed or implied. RobecoSAM AG and its related, affiliated and subsidiary companies disclaim all warranties, expressed or implied, including, but not limited to, implied warranties of merchantability and fitness for a particular purpose. Any opinions and views in this publication reflect the current judgment of the authors and may change without notice. It is each reader's responsibility to evaluate the accuracy, completeness and usefulness of any opinions, advice, services or other information provided in this publication. Limitation of liability All information contained in this publication is distributed with the understanding that the authors, publishers and distributors are not rendering legal, accounting or other professional advice or opinions on specific facts or matters and accordingly assume no liability whatsoever in connection with its use. In no event shall RobecoSAM AG and its related, affiliated and subsidiary companies be liable for any direct, indirect, special, incidental or consequential damages arising out of the use of any opinion or information expressly or implicitly contained in this publication. Copyright Unless otherwise noted, text, images and layout of this publication are the exclusive property of RobecoSAM AG and/or its related, affiliated and subsidiary companies and may not be copied or distributed, in whole or in part, without the express written consent of RobecoSAM AG or its related, affiliated and subsidiary companies. No Offer The information and opinions contained in this publication constitutes neither a solicitation, nor a recommendation, nor an offer to buy or sell investment instruments or other services, or to engage in any other kind of transaction. The information described in this publication is not directed to persons in any jurisdiction where the provision of such information would run counter to local laws and regulation RobecoSAM AG 17