Download - TBLI CONFERENCE™ EUROPE 2014 - Improving CSR Communication - Hazel Goedhart - Sustainalytics

Translating ESG data into analysis for investors – trends in disclosure and

company response

TBLI Conference Europe Amsterdam, 29 October 2014

Sustainalytics: What we do

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We help clients turn vast quantities of environmental, social and governance information into insightful, value-added analysis to enable more informed investment decisions.

SRI

(Normative)

SOFT RI

(Reputation)

(Materiality)

HARD RI

RI

Equity – Developed markets

Equity – Emerging markets

Fixed Income – Government

Fixed Income – Private/ Public

Other alternative assets

Structured products

Real estate

Commodities

Private equity / VC

Microfinance / Impact investing

ASSET CLASSES

© Sustainalytics 2014

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Responsible Investment: Diversity in motives

RI Approaches

Active Ownership/ Engagement

Positive Best in Class/Screening

Norms-Based Screening

Negative Exclusionary

Screening

Integration in Investment Process

Positive Thematic and Impact investing

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Responsible Investment: Strategies

Investors Seek:

Sector-specific ESG indicators

Quantified, comparative data

Broad coverage

Historical data – momentum

Materiality – link with financial performance

Business models approach

Forward looking

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Company Responses

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Disclosure Distribution per Region

Europe

Asia-Pacific

North America

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ESG Reporting Standards

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Disclosure Improving over Time

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Company Response Rates Increasing

Trading Companies & Distributors 31%

Retailing 30%

Oil & Gas Refining, Marketing, Storage & Transportation29%

bottom 3 industries

Diversified Metals & Mining 75%

Household & Personal Products 71%

Telecommunication Services 70%

top 3 industries

Types of Company Response

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Non-responsive

Defensive / aggressive

Tentatively responsive –

lack of understanding

Highly responsive –

understanding of purpose of requests

Pro-active – reaching out to investors