Environmental, Social and Governance Standards: Making Them Transparent for Investors. Wednesday, May 4, 2011; 11:00 AM 12:15 PM

Transcription

1 Environmental, Social and Governance Standards: Making Them Transparent for Investors Wednesday, May 4, 2011; 11:00 AM 12:15 PM Moderator Jane Madden, Executive Vice President, CSR and Sustainability, Edelman Speakers Susan Blesener, Director, Corporate Accountability, Novo Nordisk Jared Carney, Executive Director, Program Development and Marketing, Milken Institute Kathy Nieland, U.S. Sustainability and Climate Change Leader, PwC Kirsten Thorne, Senior Policy Advisor, Chevron Corp. Mike Wallace, Director, Focal Point USA, Global Reporting Initiative

2 Growth of investment funds using ESG factors Total net assets (US$ billions) Total net assets Number of funds Number of funds Note: ESG funds include mutual funds, annuity funds, closed-end funds, exchange-traded funds (ETFs), alternative investment funds and other pooled products, but exclude separate account vehicles. Source: Social Investment Forum Foundation.

3 Managing climate change risk across scenarios Portfolio to target 7% return

4 Green Winners: Sustainable companies outperform peers

5 ESG factors are increasingly important to U.S. investors Sustainable investing (US$ billions) 3,500 3,000 Total sustainable investments 2,500 2,000 Incorporating ESG investments 1,500 1, Note: Overlapping assets involved in some combination of ESG incorporation, filing shareholder resolutions or community investing are subtracted to avoid potential effects of double counting. Prior to 2010, assets subject to ESG incorporation were limited to socially and environmentally screened assets. Source: Social Investment Forum Foundation.

6 Directors are not increasing their focus on environmental stewardship Yes, much more time and focus than in the past 2% Yes, but not a great increase from the past 13% No change. It's already a major focus 21% No, I don't expect any change 58% No, we will decrease our time and focus 6% Note: Surveyed companies are the top 2,000 publicly traded firms (by revenue) listed with the NYSE Euronext,the NYSE Amex, and the NASDAQ OMX Group stock exchanges. Source: PwC, Annual Corporate Directors Survey 2010 (formerly titled What Directors Think ). Please indicate if you would like your board to devote more time this year on the sustainability/ climate change (% of total 1,104 surveyed directors)

7 Most directors do not expect their board would increase focus on social responsibility issues Yes, much more time and focus than in the past 1% No change. It's already a major focus 24% Yes, but not a great increase from the past 7% Please indicate if you would like your board to devote more time this year on the social responsibility issues (% of total 1,106 surveyed directors) No, we will decrease our time and focus 4% No, I don't expect any change 65% Note: Surveyed companies are the top 2,000 publicly traded firms (by revenue) listed with the NYSE Euronext,the NYSE Amex, and the NASDAQ OMX Group stock exchanges. Source: PwC, Annual Corporate Directors Survey 2010 (formerly titled What Directors Think ).

8 Slides from Mike Wallace

9 Increasing Stakeholders and Demand Modern Due Diligence

10 Shareholder Initiatives

11 Signatories to the PRI (US) 800+ international signatories PARTIAL LIST OF ASSET OWNERS (200): AFL-CIO Reserve Fund / AFL-CIO Staff Retirement Plan CalPERS / CalSTRS Connecticut Retirement Plans and Trust Funds (CRPTF) General Board of Pension and Health Benefits United Methodist Church Illinois State Board of Investments Los Angeles County Employees Retirement Association (LACERA) Maryland State Retirement and Pension System New York City Employees Retirement System / New York State Local Retirement System SEIU Pension Plans Master Trust State Universities Retirement System of Illinois Teachers' Retirement System of the City of New York Universal Health Care Foundation of Connecticut

12 Signatories to the PRI (US) (cont.) 800+ international signatories PARTIAL LIST OF ASSET INVESTMENT OWNERS MANAGERS: (200): AFL-CIO Reserve Fund / AFL-CIO Staff Retirement Plan CalPERS BlackRock / CalSTRS Boston Trust Connecticut Calvert Investments Retirement Plans and Trust Funds (CRPTF) Capital Group International General CBRE Board Investors of Pension and Health Benefits United Clear Methodist Bridge Advisors Church Domini Social Investments Illinois State Board of Investments MFS Investment JPMorgan Asset Management Los Angeles County Employees Retirement Association Management (LACERA) Kohlberg Kravis Roberts & Co, LLP Maryland State Retirement and Pension System Principal Global Investors Krull & Company New York City Employees Retirement System / New T. Rowe York State Price Northern Trust Global Investments Local Retirement Prudential System Real Estate Investors Tower Capital Asset SEIU Russell Pension Investments Plans Master Trust Management LP State TD Asset Universities Management Retirement Inc. System of Illinois Teachers' The Townsend Retirement Group System of the City of New York Universal TIAA - CREF Health Care Foundation of Connecticut

13 Analysis of Tech Sector Based on 2010 information.

14 Analysis of Tech Sector (cont.) Based on 2010 information.

15 Market Evolution 300,000+ data terminals globally 4,200+ companies and climbing Sustainability Aspects Emissions Energy Consumption Human Rights Policies Board Make-Up Built around GRI

16 ESG Disclosure Score Company Name Environmental Disclosure Score Social Disclosure Score Governance Disclosure Score Overall ESG Disclosure Score Apple CA, Inc. n\a n\a Dell EMC Fujitsu HP Intel IBM Microsoft n\a Toshiba

17 Environmental Criteria Company Names Environmental Disclosure Score Total Energy Consumption (Mwh) Total GHG Emission (ThTonnes) Water Consumption (Thousands of cubic meters) Total Waste (Thousands of metric tons) Apple n/a n/a --- n/a CA, Inc. n/a n/a n/a n/a Dell EMC Fujitsu HP Intel n/a IBM n/a Microsoft n/a Toshiba

18 Score 2010 Score 2009 Score 2010 Score 2009 Social & Governance Criteria Company Name Social Disclosure Score Governance Disclosure score % Employees Unionized Community Spending (Mn $) % Independent Directors % Women on Board Apple CA, Inc n/a n/a Dell EMC Fujitsu HP n/a Intel n/a IBM n/a Microsoft Toshiba

19 Bloomberg Survey With over 300,000 users, the Bloomberg Professional service provides a great opportunity and platform for you to share information with current and potential investors concerning your Sustainability or Corporate Social Responsibility program. Our survey is based on the guiding principles of the GRI framework.

20 0-Jan Feb Mar-04 6-May Jun Jul-04 9-Sep Oct-04 2-Dec Jan Feb-05 7-Apr May Jun Aug Sep-05 3-Nov Dec Jan-06 9-Mar Apr-06 1-Jun Jul Aug-06 5-Oct Nov Dec-06 8-Feb Mar-07 3-May Jun Jul-07 6-Sep Oct Nov Jan Feb-08 3-Apr May Jun-08 7-Aug Sep Oct Dec Jan-09 5-Mar Apr May-09 9-Jul Aug-09 1-Oct Nov Dec-09 Sustainability Performance 180% 160% 140% 120% 100% 80% 60% DOW JONES SUSTAINABILITY INDEX DOW JONES INDUSTRIAL AVERAGE

21 NASDAQ OMX Sustainability Index

22 Bloomberg Reporters vs. Non