Upload
ceobroadband
View
407
Download
0
Embed Size (px)
Citation preview
Crea%ng a Brighter Future: Investor Day
FTTH Council Europe London, United Kingdom
February 19, 2013
Michael Jantzi, CEO Sustainaly%cs
2
Why Sustainaly%cs?
I’m not an industry expert…
I know capital markets, especially the RI/ESG sector
I know that the industry requires capital
I believe that this industry has a good story to tell
Agenda
3
Sustainaly%cs
What is Responsible Investment?
Industry Story
Sustainaly%cs
Data E S G Insights
Environment Social Governance
We help clients turn vast quan%%es of environmental, social and governance (ESG) informa%on into insigh\ul, value-‐added analysis to enable more informed investment and business decisions.
4
2012 Best research piece integra%ng financial analysis with long-‐term ESG factors
IRRI Thomson Extel Survey
• Best RI Analysis Firm • Best Corporate Governance
Analyst • Best Environmental and Social
Analyst • Best Sales/Client Rela%ons
The Farsight Award
Sustainaly%cs: What we do Sustainaly%cs
6
Our Clients
Our clients include…
Agenda
7
Sustainaly%cs
What is Responsible Investment?
Industry Story
8
Responsible Investment
What is Responsible Investment? RI is the integra%on of environmental, social and governance (ESG) factors into
the tradi%onal investment decision-‐making process with the primary purpose
of improving the (long-‐term) risk-‐return profile of an investment por\olio.
9
Responsible Investment: Growth
RI AUM 15-‐20%
Total Global AUM 83%
RI AUM 9%
Total Global AUM 91%
RI AUM 7%
Total Global AUM 93%
2007 2010 2015
($30 Trillion AUM)
($78 Trillion AUM)
($ 10 Trillion AUM) 23.2% CAGR
Global RI AUM $5.0 Trillion
Global RI AUM $9.3 Trillion
Global RI AUM $26.5 Trillion
Source: Robeco and Booz & Company. Responsible Inves-ng: A Paradigm Shi8 – From Niche to Mainstream. 2009.
Fiduciary Responsibility
10
This is a follow up to the 2005 Freshfields report on Fiduciary Responsibility, which stated that integra%ng ESG considera%ons was permissible and arguably required in all jurisdic%ons.
‘In tendering for investment mandates, it would be expected that the investment consultant or asset manager would raise ESG considera-ons as an issue to be taken into account and discussed with the client even if the pension fund had not specified ESG considera-ons as material to the tender. If the investment consultant or asset manager fails to do so, there is a very real risk that they will be sued for negligence on the ground that they failed to discharge their professional duty of care to the client by failing to raise and take into account ESG considera-ons.’
Provides guidance in the area of integra%on, engagement and both posi%ve and nega%ve screening for trustees.
Deutsche Bank Group reviewed more than 100 academic studies globally, then closely examined and categorized 56 research papers, as well as 2 literature reviews and 4 meta studies.
100% of studies show that highly rated ESG
companies have lower cost of capital in terms of debt (loans and bonds) and equity (implied cost of capital).
89% of studies show that highly rated ESG companies exhibit market based outperformance.
85% of studies show that highly rated ESG companies exhibit accoun%ng based outperformance .
11
The Materiality of ESG Issues
The Rise of NGO/Business Partnerships
12
13
Responsible Investment: Risks and Opportuni%es
Risks
Opportuni%es
Source: Yahoo Finance and Raj Thamotheram
Texas Refinery Accident
Texas Refinery Accident
Alaska Oil
Spill
Azerbaijan Gas Leak
Violations Of Clean Water Act
Penalties From the
OSHA
Gulf of Mexico Oil Spill Thunder
Horse Accident
Charges for Manipulation
of Gas Market
Grangemouth 2000
The Value of ESG
"It's very dangerous to join up dots that may not be appropriate to join up." Tony Hayward
14
Agenda
15
Sustainaly%cs
What is Responsible Investment?
Industry Story
16
A Good Story
Communica%on networks underpin/support economic growth
Environment
Telecommu%ng/teleworking
E commerce
Support of cleantech/renewables sector
17
Vision is to make solar simple and energy smart so everyone is empowered to create a zero energy footprint for themselves, their home and their business.
75,682 inverters (PV-‐panels) are connected and have produced 651 gWh in energy throughout their life%me.
Mission is to build the world's finest networked energy system and revolu%onize power genera%on on a global scale -‐ one solar panel, one kilowan hour at a %me.
Enphase Energy: (NASDAQ: ENPH)
A Good Story: Cleantech
18
Offseqng 450 tons of CO2. This equals the CO2 emission for three year’s of
the Drax power sta%on, which is UK’s largest coal-‐fired power sta%on.
A Good Story: Cleantech
19
A Good Story
Communica%on networks underpin/support economic growth
Environment
Telecommu%ng/teleworking
E commerce
Support of cleantech/renewables sector
Social Telehealth/teleeduca%on
Support for civil society
In 2011, the United na%ons took an extraordinary step by declaring that
internet access be considered a human right.
20
ESG Issues and Ques%ons
Environment
Produc%on
cables (outdoor, aerial, indoor, home)
ac%ve equipment (ONT, OLT)
raw materials
Electronic Product Environmental Assessment Tool (EPEAT) / EnergyStar
Transport
Deployment
Use – energy consump%on, GHG emissions
Disposal – landfill, incinera%on
Restric%on of the use of Certain Hazardous Substances (RoHS)
Waste Electric and Electronic Equipment Direc%ve (WEEE)
21
ESG Issues and Ques%ons
Social Employment/Labour -‐ managing head count reduc%ons
Supply Chain
Dodd Frank Act (Sec%on1502) -‐ requires companies to ensure that their
mineral sourcing prac%ces are not contribu%ng to conflict – U.S. SEC
overseeing supply chain due diligence
OECD -‐ Due Diligence Guidance for Responsible Supply Chains of
Minerals from Conflict-‐Affected and High-‐Risk Areas, which is endorsed by
the United Na%ons
Governance Structural separa%on
22
The Outcome
23
The Outcome
Disclaimer
24
Copyright © 2013 Sustainaly%cs. All rights reserved.
No por%on of this material may be reproduced in any form without the expressed, wrinen permission of Sustainaly%cs.