When investments create positive impact and financial returns Geneva, June 2 nd, 2016 Dominik Scheck Senior Client Portfolio Manager
Who we are ORIX Corporation Headquartered in Tokyo, established in 1964 in Japan Approximately 20 700 professionals offering diversified financial services including leasing, lending, rental, real estate, life insurance as well as environmental and energy businesses Robeco Headquartered in Rotterdam, established in 1929 in the Netherlands Approximately 1,500 professionals in 14 countries offering services and solutions in the areas of equity, fixed income, quantitative strategies, investment solutions and alternative investments RobecoSAM Headquartered in Zurich, established in 1995 in Switzerland Approximately 130 professionals offering services and solutions in the areas of asset management, indexes, private equity, governance & active ownership and sustainability services 2
Examples Focus Investment Approaches Overview Impact Investing Traditional Responsible Sustainable Thematic Social & Environmental Impact-first Philanthropy Competitive Returns ESG risk management ESG opportunities High-impact solutions Finance only Impact only Limited or no focus on ESG factors of underlying investments Focus on ESG risks ranging from a wide consideration of ESG factors to negative screening Focus on ESG opportunities, through investment selection, PM and shareholder Focus on one or a cluster of issues where social or environmental needs create a commercial growth opportunity for market-beating returns Focus on social or environmental impact. The modules combine portfolio optimization, exclusion criteria and best-in-class selection. Focus on one or a cluster of issues where social or environmental needs require in part a financial trade-off Focus on one or a cluster of issues where social or environmental needs lead to a financial trade-off PE firm integrating ESG risks into investment analysis Equity fund with exclusion criteria such as Values Based Offering Best-in-Class SRI Social Responsible Investment fund Gender Equality fund solution. Children s Rights fund solution. Clean energy mutual fund or mandate solution Water fund or mandate solution Minimise environmental impact solution in terms of water use, GHG emissions, energy consumption and waste generation. PE fund that is active in sectors and businesses driving social/ environmental changes in EM Microfinance PE funds Investing in social enterprises or organisations that, for example, are building schools in Emerging Market countries Source: Bridges Ventures, 2012 and RobecoSAM, 2015. 3
Overview Social and Environmental Impact How we achieve and how we measure Impact and financial performance 4
Impact Investing defined Impact investing intentionally seeks measurable social and environmental benefits alongside a financial return Intentionality Measurability Profitability Source: RobecoSAM 5
RobecoSAM impact solutions Environmental Impact Social Impact Core Equities (Industry Impact Leaders) Sustainable Global Equities Sustainable European Equities Global Small Cap Equities Environmental Impact Equities Sustainable Global Gender Equality Impact Equities Sustainable Global Child Impact Equities Thematic Equities (Impact Solution Providers) Sustainable Water Fund Smart Energy Fund Smart Materials Fund Sustainable Healthy Living Fund Sustainable Agribusiness Equities 6
Gender equality is a business-strategic goal Enhanced reputation and corporate branding Retention and development of the best talents Deeper in-sight into customers and market opportunities Improved financial performance 7
RobecoSAM goes beyond the board RobecoSAM Gender Score based on Corporate Sustainability Assessment Board Talent Equal Trend of Occupational nomination management remuneration employee health and process and retention satisfaction safety RobecoSAM Gender Score Source: RobecoSAM. *Based on questions that were identified through the methodology of EDGE Certified 8
RobecoSAM impact offering Environmental Impact Social Impact Core Equities (Industry Impact Leaders) Sustainable Global Equities Sustainable European Equities Global Small Cap Equities Environmental Impact Equities Sustainable Global Gender Equality Impact Equities Sustainable Global Child Impact Equities Thematic Equities (Impact Solution Providers) Sustainable Water Fund Smart Energy Fund Smart Materials Fund Sustainable Healthy Living Fund Sustainable Agribusiness Equities 9
Eligible universe environmental impact A few critical industries account for 80% of the environmental footprint Green House Gas Emissions (t CO2/mUSD EV) Energy Consumption (MWh/mUSD EV) Rest 21% Rest 13% Utilities 33% Transportation 9% Transportation 11% Energy 10% Utilities 52% Energy 12% Materials 23% Materials 16% Water Use (m3/musd EV) Rest 19% Waste Generation (t/musd EV) Rest 22% Food & Staples Retailing 3% Food, Beverage & Tobacco 3% Energy 9% Utilities 14% Materials 52% Food & Staples Retailing 5% Commercial & Professional Services 6% Energy 4% Capital Goods 7% Utilities 13% Materials 43% Source: RobecoSAM 10
Number of Stocks Impact Quantitative impact framework Example: GHG footprint reduction by avoiding the laggards in four critical sub-industries only 1600 1400 1200 1000 800 600 400 200 0 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Threshold for exclusion (worst in class) Excluded Stocks Additional Excluded Stocks Eligible Stocks GHG Emissions (LHS) (LHS) (LHS) (RHS) Source: RobecoSAM. Applied on MSCI World Developed per end of March 2016. 11
Overview Social and Environmental Impact How we achieve and how we measure Impact and financial performance 12
Environmental Impact Measurement RobecoSAM Model Portfolio MSCI World *European average figures per year Average carbon dioxide emissions from new passenger cars per year; average 20000 km and 130 g CO2-eq/km; in t CO2-eq (source: www.eea.europa.eu) Average electricity consumption per household and year; in MWh (source: www.ec.europa.eu/eurostat) Average water consumption per person and year; in m3 (source:www.eea.europa.eu) Average waste generation per household and year; in t (source: www.ec.europa.eu/eurostat) 2.6 3.9 47.5 0.4 13
Social Impact Measurement The number in brackets indicates the absolute difference in score value of the portfolio compared to the benchmark 14
Voting & engagement integrated in process Engage with companies with a focus on quality and impact Close cooperation with Sustainability Investing (SI) Research team and portfolio managers Emphasis on constructive dialogues and strong relationships with companies Source: RobecoSAM 15
Support from and collaboration with external partners EDGE Certified Foundation: The non-profit organization provides its EDGE Certification to businesses that strive for a better workplace gender equality. The certification is applicable across industries and geographical regions. RobecoSAM and the EDGE Certified Foundation have been collaborating since 2012 to develop the gender-related indicators included in the calculation of the DJSI. Global Child Forum: Global Child Forum is an independent, global multi-stakeholder platform for informed dialogue and thought leadership on how to advance children s rights in support of the UN Convention on the Rights of the Child. Further development and improvement in the Corporate Sustainability Assessment (CSA) Access to global networks on both sides No investment decisions triggered by our partners work 16
Overview Social and Environmental Impact How we achieve and how we measure Impact and financial performance 17
Social Impact: Portfolio performance since inception RobecoSAM Global Gender Equality Impact Equities (31.03.2016, Net of fee, EUR) 14% 12% 10% 8% 6% 4% 2% 0% -2% 09-2015 11-2015 01-2016 03-2016 RobecoSAM Global Gender Equality Impact Equities D EUR Inception date: Rolling Performance RobecoSAM Global Gender Equality Impact Equities Source: RobecoSAM. Data as of 31.03.2016 YTD Last month Last 3 months Last 6 months Last 12 months Last 2 Years Last 3 Years Last 5 Years Past performance is no indication of future results. The values and returns indicated here do not consider the fees and costs which may be charged when subscribing, redeeming and/or switching units. Since Inception * -3.58% 2.23% -3.58% 4.11% - - - - 3.83% MSCI World Index TRN -5.01% 1.82% -5.01% 2.98% - - - - 1.92% Excess Return 1.43% 0.41% 1.43% 1.13% - - - - 1.91% *18.09.2015 18
Portfolio performance since inception RobecoSAM Sustainable European Equities (31.03.2016, Gross of fee, EUR) 160% 140% 120% 100% 80% 60% 40% 20% 0% 06-2009 06-2010 06-2011 06-2012 06-2013 06-2014 06-2015 RobecoSAM Sustainable European Equities Composite Inception date: 30.06.2009 Rolling Performance YTD Last month Last 3 months Last 6 months Last 12 months Last 2 Years p.a. Last 3 Years p.a. Last 5 Years p.a. Since Inception* p.a. RobecoSAM Sustainable European Equities -5.79% 1.29% -5.79% -1.33% -12.17% * 4.50% 8.11% 7.26% 11.01% MSCI Europe Index TRN -6.92% 1.55% -6.92% -1.83% -13.69% * 2.62% 6.85% 6.66% 10.13% Excess Return 1.13% -0.26% 1.13% 0.50% 1.52% * 1.88% 1.26% 0.60% 0.88% Source: RobecoSAM. Data as of 31.03.2016 Past performance is no indication of future results. The values and returns indicated here do not consider the fees and costs which may be charged when subscribing, redeeming and/or switching units. *30.06.2009 19
Conclusion Intention Define your intention from a social or environmental point of view Measurement Identify criteria to measure your social and environmental impact Report regularly on your impact Engage with companies with a focus on quality and impact Profitability Revert social and environmental impact back to profitability 20
Appendix 21
In-depth sustainability research Our CSA (Corporate Sustainability Assessment) provides 360-degree insight into each firm s sustainability performance 600 data points 120 question scores 20 criteria scores Total Score 3 dimension scores 1 total score Source: RobecoSAM 22
Disclaimer Important legal information: The details given on these pages do not constitute an offer. They are given for information purposes only. No liability is assumed for the correctness and accuracy of the details given. The value of the units and the return they generate can go down as well as up. They are affected by market volatility and by fluctuations in exchange rates. Past performance is no indication of future results. The values and returns indicated here do not consider the fees and costs which may be charged when subscribing, redeeming and/or switching units. The breakdown into sectors, countries and currencies as well as possibly indicated benchmarks is liable to change at any time in line with the investment policy determined in the Prospectus. The translation into action of fund recommendations contained in these documents shall always lie in the sole responsibility of the intermediary or investor. Investments should only be made after a thorough reading of the current Prospectus and/or the Fund Regulations, the current Key Investor Information Document (KIID) and articles of association, the latest annual and semi-annual reports and after advice has been obtained from an independent finance and tax specialist. The documents mentioned can be obtained free of charge by calling the local RobecoSAM office, on www.robecosam.com or from any address indicated below. The range of RobecoSAM investment funds with domicile in Luxembourg (SICAV) is registered for public offering in Luxembourg, Switzerland, Germany, Austria, France, Holland, Sweden, Spain, Belgium, Ireland, United Kingdom, Singapore* and Italy. However, due to the different registration proceedings in the various countries, no guarantee can be given that each fund or share category is or will be registered in every jurisdiction and at the same time. For an up to date registration list, please refer to www.robecosam.com. Please note that in any jurisdiction where a fund or share category is not registered for public offering, they may, subject to the applicable local regulation, only be sold in the course of private placement or institutional investments. Particularly, the RobecoSAM funds are not registered and, therefore, may not be offered for sale or be sold in the United States of America and their dependencies. In a case of private placement this pages are destined exclusively for internal use by the intermediary appointed by RobecoSAM and/or the institutional investor and shall not be passed over to third parties. Particularly, this document shall under no circumstances be used as material for public offering or any other kind of promoting to the public of the RobecoSAM funds or their share categories. Switzerland: Representative is GAM Investment Management (Switzerland) AG, Hardstrasse 201, Postfach, CH-8037 Zurich. Paying Agent: Bank Julius Bär & Co. AG, Bahnhofstrasse 36, Postfach, CH-8010 Zurich. Germany: Information Agent is GAM (Deutschland) AG, Taunusanlage 15, D-60325 Frankfurt am Main. Paying Agent is DekaBank, Deutsche Girozentrale, Hahnstrasse 55, D-60528 Frankfurt am Main. Austria: Paying Agent is Erste Bank der österreichischen Sparkassen AG, Graben 21, A-1010 Vienna. Spain: RobecoSAM investment funds are registered in the Registry of Foreign Collective Investment Institutions Commercialized in Spain of the CNMV: Multipartner SICAV (No. 421). For a list of registered distributors in Spain, please refer to www.cnmv.es. Copyright 2016 RobecoSAM - all rights reserved. *restricted recognition for institutional investors in Singapore 23
Disclaimer Important legal information: RobecoSAM AG (previously SAM Sustainable Asset Management AG) has been authorized by the FINMA as Swiss representative of the Fund, and UBS Switzerland AG, Bahnhofstrasse 45, 8001 Zürich, postal address: Badenerstrasse 574, P.O. Box, 8098 Zurich, Switzerland as Swiss paying agent. The Prospectus, the Key Investor Information Document (KIID), the articles of association, the annual and semi-annual reports of the Fund, as well as the list of the purchases and sales which the Fund has undertaken during the financial year, may be obtained, on simple request and free of charge, at the head office of the Swiss representative RobecoSAM AG, Josefstrasse 218, CH-8005 Zurich. The value of the investments may fluctuate. Past performance is no indication of future results. The values and returns indicated here do not consider the fees and costs which may be charged when subscribing, redeeming and/or switching units. The prices used for the performance figures of the Luxembourg-based funds are the end-of-month transaction prices up to 4 August 2010. From 4 August 2010, the transaction prices will be those of the first business day of the month. Return figures versus the benchmark show the investment management result before management and/or performance fees; the fund returns are with dividends reinvested and based on net asset values with prices and exchange rates of the valuation moment of the benchmark. Please refer to the prospectus of the funds for further details. The Prospectus is also available via the www.robeco.ch website. Performance is quoted net of investment management fees. If a total expense ratio is mentioned in this publication this is the one stated in the fund's latest annual report at closing date.