Transcript SRI/ESG in Storebrand

Sustainable Investments
November 2012
Philip Ripman, BI, 15.11.2012
Sustainability at the core
Internal asset
management
External asset
management
Capital
investments
•Standards for
external funds
•Analysis & risk
assessment
•Analysis & risk
assessment
•Microfinance
•Monitoring
•Active ownership
•Investment themes
•Management
•Monitoring
•
11 specialists in house; 8 analysts in Front Office
•
Analysis and monitoring ~3700 listed companies
•
Minimum standard covers all AUM ~NOK 440 billion
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Recent developments
Storebrand Triple Smart
Positioning (ESG)
Sustainabilityrating
Top 100 names
Best of sector
Retail and
institutional clients
Efficient
operations (ESG)
Database
Financially robust
• Track effects
• Access: portfolio
managers
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• MSCI All Countries
• Sector neutral
• Quarterly updates
Sector based analysis
Sustainability Rating
Positioning
Efficient
Operations
70-100 indicators per sector,
1-3 datapoints per indicator
Financially
robust
Global trends
- altered conditions for business
Emerging
economies
Resource
scarcity
Population growth and increasing middle class
 increasing costs of energy and resources
Consumer
trends
Economic growth in emerging economies
 exposure to conflict, climate risk, corruption
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Consumer awareness
 reputation risks
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Global trends
Global trends
Global trends
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These are real risks facing
companies
•
Several of these risks are
already locked into a pattern
of exponential increase
•
Companies that have assessed
the risks and are acting
accordingly will be better
positioned to compete and
succeed in the future.
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Growth = Success?
The way forward..
Key barriers for investors include: restrictions in
conventional valuation models, lack of ESG expertise, lack
of awareness and/or scepticism regarding the investment
case
Key barriers at system-wide level include: disproportionate
focus on short-term performance and issues with a nearterm impact, and the fact that many negative externalities
are underpriced
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WEF, Accelerating the Transition towards Sustainable
Investing, 2012