The Sustainability Yearbook 2014

Transcription

1 The Sustainability Yearbook 2014

2 The Sustainability Yearbook /2014 RobecoSAM AG yearbook.robecosam.com

3 Michael Baldinger Dear Reader, 3

4 4

5 FOREWORD 3 1. KPMG GUEST ARTICLE: 6 Where next for corporate responsibility reporting? 2. FOCUS ON FINANCIAL MATERIALITY OF SUSTAINABILITY SUSTAINABILITY LEADERS IN THE EMERGING MARKETS: MYTH OR REALITY? LOCAL STAKEHOLDERS, GLOBAL IMPACT THE COMPANY PERSPECTIVE: PUMA s APPROACH TO STAKEHOLDER ENGAGEMENT SUSTAINABILITY LEADERS COMPANY OVERVIEW 109 5

6 6

7 Yvo de Boer, Global Chairman Climate Change & Sustainability Services at KPMG International, explores the current state of corporate sustainability reporting and how it is likely evolve. Figure 1: Countries included in the KPMG Survey of Corporate Responsibility Reporting 2013 Americas Asia Pacific Europe Middle East & Africa Slovakia Taiwan Hungary New countries added to the survey in

8 Figure 2: Rate of corporate responsibility reporting across 41 countries and 2013 Rate of corporate responsibility reporting across 41 countries and 2013 (% of companies reporting on CR) Belgium Denmark Finland France Germany Greece Hungary Italy Netherlands Norway Poland 69 Portugal 54 Romania 58 Russia 63 Slovakia 88 Spain 72 Sweden Switzerland UK Europe Canada Mexico USA Brazil Chile Colombia Angola Israel Nigeria South Africa UAE Americas 2011 Australia China (incl. Hong Kong) India Indonesia Japan Kazakhstan Malaysia New Zealand Singapore South Korea Taiwan Middle East & Africa Reporting rates in percentages Asia Pacific Base: 4,100 N100 companies Source: KPMG International, The KPMG Survey of Corporate Responsibility Reporting 2013, December 2013 Spotlight on reporting requirements The following countries have high CR reporting rates or significant recent growth in CR reporting, related to reporting requirements: Denmark Financial Statements Act requires large companies to report on CR activities, or, if they do not, to explain in their annual reports why not. France Grenelle II Act requires large companies to report annually on CR activities and advises reports are subject to independent verification. Nigeria Central Bank of Nigeria requires financial services companies to report on CR and the Securities and Exchange Commission of Nigeria Corporate Governance Code recommends companies disclose CR practices. Norway Norwegian Accounting Act (and amendment in 2013) requires large companies to report on social, environ-mental an anticorruption activities. India The top 100 listed companies in India are required by the Securities Exchange Board to report on CR in their annual reporting from financial year 2012/13. Indonesia Law No. 40/2007 requires Limited Liability Companies to report on CR in the annual report. Publicly-listed companies are also required to report on CR in the annual report. Singapore Singapore Stock Exchange (SGX) Sustainability Reporting Guide for listed companies and Code of Corporate Governance encourage CR reporting, and Energy Conservation Act 2012 requires large companies to report on energy use. South Africa King Code of Governance Principles and King Report on Governance (King III), and Johannesburg Stock Exchange (JSE) require companies to publish an integrated report including CR performance. Sourceà -" x X xa mzxauâ 3lX -" 1 X z] z z A X 0X zx mrmum 0X z mxk  XSXwRX 8 â 0zRXSz1 " â 3lX 1 AmxARmum <XA Rzzt Japan Mandatory and voluntary guidelines for certain types of companies to report on environmental impacts, including GHG emissions. Malaysia Malaysia Stock Exchange listing requirement that companies describe CR activities and law that all publicly listed companies publish CR information in the annual report. UK Companies listed on the London Stock Exchange must report on GHG emissions from Companies Act requires large and medium sized companies to disclose CR information relevant to company performance in the annual report. Source: KPMG, United Nations Environment Programme, Global Reporting Initiative and Unit for Corporate Governance in Africa, Carrots and Sticks, Sustainability reporting policies worldwide, USA Disclosure requirements of the U.S. Securities & Exchange Commission (SEC), Dodd-Frank Act requires disclosure on conflict minerals and Presidential Executive Order requires federal agencies to report on CR performance.

9 Figure 3: CR Reporting by region. Percentage of companies with CR reports 100% 80% 60% 40% 20% 0% Americas Europe Asia Pacific Middle East & Africa Base: Source CR reporting: an essential business management tool sustainability right to the heart of business strategy 9

10 CR information in the annual report and assurance: becoming standard practice Most companies report opportunity in environmental and social change Figure 4: Ten sustainability megaforces Deforestation Climate Change Energy & Fuel Ecosystem Decline Material Scarcity Resource Water Scarcity Food Security Urbanization Growth Population Wealth Source: KPMG International, Expect the Unexpected, February

11 Six types of CR risk Companies should prepare to report on value at stake Boards need to get behind integrated reporting 11

12 Supply chain reporting needs more focus Better links needed between CR performance and remuneration 12

13 Towards Future Value 13

14 of sustainability have put a spotlight on the concept of financial has always focused on identifying sustainability factors that are likely to have an impact on companies financial performance, over the team has updated its analysis of the materiality of sustainability criteria across all industries. Christopher Greenwald, Co-Head of Sustainability determines the financial relevance of the sustainability criteria that are incorporated into How do you define financial materiality, and why is this important to you? 14

15 There has been much discussion about the materiality of sustainability in recent months. What makes your framework different? So how do you determine which information is financially material? Although your materiality framework focuses on industry-specific criteria, have you identified any sustainability criteria or factors that are significant across all industries? Figure 1: Example of Materiality Matrix: Software industry Likelihood of impact Digital Inclusion Liability Management Environmental Management Intellectual Property Management Tax Strategy Business Ethics Customer Relationship Management Corporate Governance Cash and Asset Management Systemic Risk Management of Technology Disruption Managing the Risk of Disruption Privacy Protection and Data Security Competitive Positioning Human Capital Management Environmental Enabling Innovation Management Degree of impact Long-term intangible factors Source 15

16 Sustainability factors and their financial impacts In the next few pages, we provide three industry examples one for each dimension to illustrate the impact of three selected sustainability criteria on the business value drivers for that industry. These examples are by no means exhaustive, and were selected to demonstrate how we make the link between sustainability factors and company costs and revenues. Industry: Beverages : Economic Sustainability Criterion: Tax Strategy Reputational Risk Lower Revenues Lower Revenues Poor Relationship with Host Country Higher Costs Tax Strategy Change in Tax Regulation Higher Costs Higher Costs Economic Development Risk Lower Revenues Source 16

17 Industry: Construction Materials : Environmental Sustainability Criterion: Environmental Management Reduced Costs Lower Resource Input per Revenue Lower Risk from Resource Volatily Environmental Management Initial Investment Business Opportunity as Preferred Suplier Lower Emissions per Revenue Lower Costs if Emissions are internalized or subject to trading scheme Lower Reputational Risk Source

18 Industry: Pharmaceuticals : Social Sustainability Criterion: Human Capital Management Increased Capacity to Innovate Higher Revenues Human Capital Management Increased Employee Satisfaction Lower Absentee Rate Increased Productivity Lower Employee Turnover Rate Reduced Recruitment Costs Reduced Training Costs Source 18

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20 People often assume that emerging markets are lagging behind developed markets when it comes to corporate sustainability. Yet data over the years reveals that emerging market companies have caught up with their developed market peers, and in some cases surpassed them. markets-based companies are exceling, and explore some of the drivers behind their strong sustainability performance. Guido Giese Figure 1 shows that Emerging market companies catch up 20

21 Figure 1: Growth in number and percentage of emerging market companies and medalists listed in The Sustainability Yearbook Number of emerging market companies % 9.0% 8.1% % 4 5.4% % % 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% Percentage of Yearbook companies based in the emerging markets % of emerging market companies in Yearbook Gold Class Silver Class Bronze Class Yearbook Member (no medal) Source Figure 2: Comparison of sustainability performance of all emerging market companies against all developed market companies in the 2014 Yearbook Risk & Crisis Management 100 Operational Eco-Efficiency 75 Codes of conduct/compliance/ Corruption & Bribery 50 Climate Strategy 25 0 Labor Practice Indicators and Human Rights Environmental Policy/Management System Human Capital Development Corporate Citizenship and Philanthropy Stakeholder Engagement Developed market Yearbook companies (equally weighted) Emerging market Yearbook companies (equally weighted) Source 21

22 Emerging market companies operate in pressure cooker environment Emerging markets are heterogeneous 22

23 Figure 3: Sustainability distributions of assessed emerging market versus developed market companies 35% 30% % of assessed companies 25% 20% 15% 10% 5% 0% total Sustainability Scores from CSA Developed Markets (1,836 companies assessed) Emerging Markets (271 companies assessed) Source The extractive industries paradox 23

24 Figure 4: Top 10 industries with the highest percentage of emerging market companies in the Yearbook 70% 67% 60% 60% 50% 40% 30% 20% 33% 30% 30% 29% 27% 25% 23% 20% 10% 0% Coal & Construction Consumable Fuels Materials Paper & Forest Products Oil & Gas Semiconductors & Semiconductor Equipment Health Care Providers & Services IT Services & Internet Software and Services Steel Food Products Electric Utilities Source Stock exchanges facilitate change 24

25 4 4 th th Emerging markets take the lead on gender equality and philanthropy 25

26 26 Conclusion

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28 The rise of social media and the speed with which information is disseminated have afforded local stakeholders considerably more power and NGOs have the ability to disrupt production, sales and business, leading to stalled production, cost overruns, reduced revenues or framework for evaluating companies stakeholder engagement activities Edoardo Gai offer an overview of the new framework and highlight some of the key findings from this year s assessment. Edoardo Gai Matthias Narr Raising the bar was available about how these strategies were The rise of the local stakeholders 28

29 Opportunities Figure 1: Drivers and benefits of local stakeholder engagement Drivers Focus Benefits Source 29

30 30 Exposure to emerging markets The investors perspective Local focus Structure

31 Figure 2: Framework for assessing stakeholder engagement strategy GLOBAL LOCAL Governance Policy / Procedure Ownership Accountability Implementation Operational Responsibility & Capacity Execution Review Measurement Lessons Learned Media & Stakeholder Analysis (MSA) Source 1 Governance Implementation 1, relates 31

32 32 Review Media & Stakeholder Analysis Preliminary findings

33 Figure 3: stakeholder engagement performance by industry Steel Source 33

34 Gap between top-down policy and bottomup implementation Figure 4: s for each component of stakeholder engagement framework (out of 100) Source Figure 5: Percentage of companies with corporate stakeholder engagement policy Policy applicable to all operations Policy applicable to some operations No policy 53 Governance Governance Source Implementation Review Policies and transparency 34

35 Figure 6: Percentage of companies with a publicly available stakeholder engagement policy Implementation Policy publicly disclosed Policy not publicly disclosed No policy Source Board level involvement Figure 7: Percentage of companies reporting to Board of Directors on stakeholder engagement topics At least quarterly Anually Semi-annually Ad-hoc Never, not applicable Source Identifying and prioritizing local stakeholders 35

36 Incentive mechanisms Figure 8: Percentage of companies incorporating stakeholder engagement into local managers performance review and incentives Yes No Source Review Measuring benefits of stakeholder engagement and feedback loops Information sharing and learning from past experiences 36

37 Figure 9: Percentage of companies providing examples of unsuccessful stakeholder engagement experiences Provided meaningful example Did not provide example Source Conclusion and outlook 37

38 Stefan Seidel Elsa Ben Hamou Dassonville: How has the rise of social media influenced the way stakeholders interact with you? How has this influenced your stakeholder engagement policies? 38

39 Who are some of your most important local stakeholders and why? How can they impact your business? Can you provide an example of a stakeholder engagement activity that has been successful and led to a positive outcome? At the group level, how does your company interact with stakeholders? How does your stakeholder engagement strategy fit into the global PUMA.Safe program and your group strategy, and how much flexibility do you have in terms of applying your stakeholder strategy at the local level? 39

40 How does your local stakeholder engagement policy contribute to your business? Have you applied any lessons learned from your interactions with local stakeholders to your global policy/practices? Based on this year s assessment, the average for the Textiles industry in the stakeholder engagement criterion was lower than for some other industries such as Electric Utilities, Metals & Mining, or Oil & Gas. What is your view on this? Where do you see room for improvement for your industry in the area of stakeholder engagement? 40

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42 global databases on corporate sustainability. Gold Class 2014 Silver Class

43 Industry Mover Sustainability Yearbook Member Sustainability leaders 2014 RobecoSAM Gold Class Company * Company RobecoSAM Silver Class Company Company RobecoSAM Bronze Class Company Company Sustainability Yearbook Members Company Company Country Country Country Country Country Country Country Country Reading Instructions Driving forces Highlighted criteria Industry statistics Results at industry level 43

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45 WHERE ARE THE WORLD S MOST SUSTAINABLE COMPANIES LOCATED? Belgium 4 1 Netherlands 16 2 Sweden 7 1 Norway 5 Finland 10 1 UK Companies listed in the Sustainability Yearbook Canada 17 3 USA Luxembourg 1 France 35 5 Portugal 4 1 Denmark 3 1 Germany 25 8 Thailand 5 2 South Korea 38 8 Japan 39 5 Taiwan Number of Gold Class companies Spain 20 1 Switzerland 14 4 Italy 15 3 India companies were invited to participate in the CSA in companies from different countries actively participated in the CSA. Colombia 8 Brazil 12 1 South Africa 9 1 Malaysia 1 Indonesia 1 Singapore 2 Australia 25 5 New Zealand 1 70 Gold Class TOP 15 INDUSTRIES BY PARTICIPATION RATE Percentage of invited companies that actively participated in the RobecoSAM Corporate Sustainability Assessment (CSA) 460 companies qualified for The Sustainability Yearbook Sustainability Yearbook Members 59 Industry Leaders 65 Silver Class 87 Bronze Class Household Products Professional Services Computers & Peripherals and Office Electronics Paper & Forest Products Tobacco Household Durables Containers & Packaging Aluminum Building Products Leisure Equipment & Products and Consumer Electronics Multi and Water Utilities Automobiles Construction & Engineering Food & Staples Retailing Beverages

46 RobecoSAM Industry Leaders 2014 Company Name Industry Country Abbott Laboratories Health Care Equipment & Supplies Adecco SA Professional Services Switzerland Adidas AG Textiles, Apparel & Luxury Goods Germany Air France-KLM Airlines France Akzo Nobel NV Chemicals Netherlands Alcatel-Lucent Communications Equipment France Alcoa Inc Aluminum Allianz SE Insurance Germany Amorepacific Corp Personal Products South Korea Anglo American PLC Metals & Mining United Kingdom Australia & New Zealand Banking Group Ltd Banks Australia Baker Hughes Inc Energy Equipment & Services Ball Corp Containers & Packaging Benesse Holdings Inc Diversified Consumer Services Japan BG Group PLC Oil & Gas United Kingdom Bombardier Inc Aerospace & Defense Canada British American Tobacco PLC Tobacco United Kingdom Canadian National Railway Co Transportation and Transportation Infrastructure Canada China Steel Corp Steel Taiwan Citigroup Inc Diversified Financial Services and Capital Markets CNH Industrial NV Machinery and Electrical Equipment Italy EDP - Energias de Portugal SA Electric Utilities Portugal Electrolux AB Household Durables Sweden Exxaro Resources Ltd Coal & Consumable Fuels South Africa Fibria Celulose SA Paper & Forest Products Brazil Gas Natural SDG SA Gas Utilities Spain Henkel AG & Co KGaA Household Products Germany Company Name Industry Country Lotte Shopping Co Ltd Retailing South Korea Marubeni Corp Trading Companies & Distributors Japan Molson Coors Brewing Co Beverages Nestle SA Food Products Switzerland Novozymes A/S Biotechnology Denmark Owens Corning Building Products Panasonic Corp Leisure Equipment & Products and Consumer Electronics Pirelli & C. SpA Auto Components Italy Roche Holding AG Pharmaceuticals Switzerland Samsung Electro-Mechanics Co Ltd Electronic Equipment, Instruments & Components South Korea SAP AG Software Germany Schneider Electric SA Electrical Components & Equipment France Siam Cement PCL Construction Materials Thailand Siemens AG Industrial Conglomerates Germany SK C&C Co Ltd IT Services & Internet Software and Services South Korea Sodexo Restaurants & Leisure Facilities France Spectra Energy Corp Oil & Gas Storage & Transportation Stockland Real Estate Australia Suez Environnement Co Multi and Water Utilities France Sumitomo Forestry Co Ltd Homebuilding Japan Tabcorp Holdings Ltd Casinos & Gaming Australia Taiwan Semiconductor Manufacturing Co Ltd Semiconductors & Semiconductor Equipment Taiwan Telenet Group Holding NV Media Belgium TUI AG Hotels, Resorts & Cruise Lines Germany Volkswagen AG Automobiles Germany Woolworths Ltd Food & Staples Retailing Australia Japan Humana Inc Health Care Providers & Services Hyundai Engineering & Construction Co Ltd Construction & Engineering South Korea KEPCO Plant Service & Engineering Co Ltd Commercial Services & Supplies South Korea KT Corp Telecommunication Services South Korea Life Technologies Corp Life Sciences Tools & Services Lite-On Technology Corp Computers & Peripherals and Office Electronics Taiwan 47-48

47 Industry Page Industry Page Aerospace & Defense 50 Airlines 51 Aluminum 52 Auto Components 53 Automobiles 54 Banks 55 Beverages 56 Biotechnology 57 Building Products 58 Casinos & Gaming 59 Chemicals 60 Coal & Consumable Fuels 61 Commercial Services & Supplies 62 Communications Equipment 63 Computers & Peripherals and Office Electronics 64 Construction & Engineering 65 Construction Materials 66 Containers & Packaging 67 Diversified Consumer Services 68 Diversified Financial Services and Capital Markets 69 Electric Utilities 70 Electrical Components & Equipment 71 Electronic Equipment, Instruments & Components 72 Energy Equipment & Services 73 Food & Staples Retailing 74 Food Products 75 Gas Utilities 76 Health Care Equipment & Supplies 77 Health Care Providers & Services 78 Homebuilding 79 Hotels, Resorts & Cruise Lines 80 Household Durables 81 Household Products 82 Industrial Conglomerates 83 Insurance 84 IT Services & Internet Software and Services 85 Leisure Equipment & Products and Consumer Electronics 86 Life Sciences Tools & Services 87 Machinery and Electrical Equipment 88 Media 89 Metals & Mining 90 Multi and Water Utilities 91 Oil & Gas 92 Oil & Gas Storage & Transportation 93 Paper & Forest Products 94 Personal Products 95 Pharmaceuticals 96 Professional Services 97 Real Estate 98 Restaurants & Leisure Facilities 99 Retailing 100 Semiconductors & Semiconductor Equipment 101 Software 102 Steel 103 Telecommunication Services 104 Textiles, Apparel & Luxury Goods 105 Tobacco 106 Trading Companies & Distributors 107 Transportation and Transportation Infrastructure

48 Aerospace & Defense Driving forces Highlighted criteria Sustainability leaders 2014 Industry statistics RobecoSAM Gold Class Bombardier Inc* Sustainability Yearbook Members BAE Systems PLC Embraer SA Finmeccanica SpA Rolls-Royce Holdings PLC As of October 31, 2013 Canada United Kingdom Brazil Italy United Kingdom Number of companies in universe 38 Number of companies assessed by RobecoSAM in Assessed companies to total companies in universe (%) 68 Market capitalization of assessed companies to total market capitalization (%) 93 Results at industry level Best weight Economic % Environmental % Social % Total average : 48 best :

49 Airlines Driving forces Highlighted criteria Sustainability leaders 2014 RobecoSAM Gold Class Air France-KLM* RobecoSAM Silver Class Qantas Airways Ltd Sustainability Yearbook Members Delta Air Lines Inc As of October 31, 2013 France Australia Industry statistics Number of companies in universe 25 Number of companies assessed by RobecoSAM in Assessed companies to total companies in universe (%) 56 Market capitalization of assessed companies to total market capitalization (%) 61 Results at industry level Best weight Economic % Environmental % Social % Total average : 57 best :

50 Aluminum Driving forces Highlighted criteria Sustainability leaders 2014 RobecoSAM Gold Class Alcoa Inc* RobecoSAM Silver Class Norsk Hydro ASA As of October 31, 2013 Norway Industry statistics Number of companies in universe 6 Number of companies assessed by RobecoSAM in Assessed companies to total companies in universe (%) 83 Market capitalization of assessed companies to total market capitalization (%) 97 Results at industry level Best weight Economic % Environmental % Social % Total average : 51 best :

51 Auto Components Driving forces Highlighted criteria Sustainability leaders 2014 RobecoSAM Gold Class Pirelli & C. SpA* RobecoSAM Silver Class Cie Generale des Etablissements Michelin Hyundai Mobis RobecoSAM Bronze Class Johnson Controls Inc Sustainability Yearbook Members Hankook Tire Co Ltd Valeo SA As of October 31, 2013 Italy France South Korea South Korea France Industry statistics Number of companies in universe 40 Number of companies assessed by RobecoSAM in Assessed companies to total companies in universe (%) 55 Market capitalization of assessed companies to total market capitalization (%) 83 Results at industry level Best weight Economic % Environmental % Social % Total average : 51 best :

52 Automobiles Driving forces Highlighted criteria Sustainability leaders 2014 RobecoSAM Gold Class Volkswagen AG* Bayerische Motoren Werke AG Fiat SpA RobecoSAM Bronze Class Nissan Motor Co Ltd Peugeot SA Toyota Motor Corp As of October 31, 2013 Germany Germany Italy Japan France Japan Industry statistics Number of companies in universe 37 Number of companies assessed by RobecoSAM in Assessed companies to total companies in universe (%) 59 Market capitalization of assessed companies to total market capitalization (%) 91 Results at industry level Best weight Economic % Environmental % Social % Total average : 61 best :

53 Banks Driving forces Highlighted criteria Sustainability Yearbook Members Banco Bilbao Vizcaya Argentaria SA Banco Bradesco SA Banco do Brasil SA Bancolombia SA Bank of Montreal Barclays PLC BNP Paribas SA CaixaBank Canadian Imperial Bank of Commerce Commonwealth Bank of Australia Credit Agricole SA DNB ASA HSBC Holdings PLC Sustainability leaders 2014 RobecoSAM Gold Class Australia & New Zealand Banking Group Ltd* Westpac Banking Corp RobecoSAM Silver Class National Australia Bank Ltd RobecoSAM Bronze Class Banco Espirito Santo SA Banco Santander SA Itausa - Investimentos Itau SA Spain Brazil Brazil Colombia Canada United Kingdom France Spain Canada Australia France Norway United Kingdom Intesa Sanpaolo SpA Itau Unibanco Holding SA KB Financial Group Inc Lloyds Banking Group PLC Nedbank Group Ltd Royal Bank of Canada Royal Bank of Scotland Group PLC Shinhan Financial Group Co Ltd Societe Generale SA Standard Chartered PLC Toronto-Dominion Bank UniCredit SpA Australia Australia Australia Portugal Spain Brazil Italy Brazil South Korea United Kingdom South Africa Canada United Kingdom South Korea France United Kingdom Canada Italy Industry statistics Number of companies in universe 210 Number of companies assessed by RobecoSAM in Assessed companies to total companies in universe (%) 54 Market capitalization of assessed companies to total market capitalization (%) 88 Results at industry level Best weight Economic % Environmental % Social % Total average : 58 best : As of October 31,

54 Beverages Driving forces Highlighted criteria Sustainability leaders 2014 RobecoSAM Gold Class Molson Coors Brewing Co* RobecoSAM Bronze Class Coca-Cola HBC AG Diageo PLC Heineken NV PepsiCo Inc Sustainability Yearbook Members Kirin Holdings Co Ltd As of October 31, 2013 Switzerland United Kingdom Netherlands Japan Industry statistics Number of companies in universe 41 Number of companies assessed by RobecoSAM in Assessed companies to total companies in universe (%) 61 Market capitalization of assessed companies to total market capitalization (%) 95 Results at industry level Best weight Economic % Environmental % Social % Total average : 54 best :

55 Biotechnology Driving forces Highlighted criteria Sustainability leaders 2014 RobecoSAM Gold Class Novozymes A/S* RobecoSAM Bronze Class Biogen Idec Inc As of October 31, 2013 Denmark Industry statistics Number of companies in universe 31 Number of companies assessed by RobecoSAM in Assessed companies to total companies in universe (%) 35 Market capitalization of assessed companies to total market capitalization (%) 78 Results at industry level Best weight Economic % Environmental % Social % Total average : 42 best :

56 Building Products Driving forces Highlighted criteria Sustainability leaders 2014 RobecoSAM Gold Class Owens Corning* TOTO Ltd RobecoSAM Silver Class Asahi Glass Co Ltd As of October 31, 2013 Japan Japan Industry statistics Number of companies in universe 18 Number of companies assessed by RobecoSAM in Assessed companies to total companies in universe (%) 72 Market capitalization of assessed companies to total market capitalization (%) 87 Results at industry level Best weight Economic % Environmental % Social % Total average : 52 best :

57 Casinos & Gaming Driving forces Highlighted criteria Sustainability leaders 2014 RobecoSAM Gold Class Tabcorp Holdings Ltd* RobecoSAM Bronze Class Kangwon Land Inc Sustainability Yearbook Members Echo Entertainment Group Ltd Ladbrokes PLC As of October 31, 2013 Australia South Korea Australia United Kingdom Industry statistics Number of companies in universe 29 Number of companies assessed by RobecoSAM in Assessed companies to total companies in universe (%) 76 Market capitalization of assessed companies to total market capitalization (%) 89 Results at industry level Best weight Economic % Environmental % Social % Total average : 44 best :

58 Chemicals Driving forces Highlighted criteria Sustainability leaders 2014 RobecoSAM Gold Class Akzo Nobel NV* Koninklijke DSM NV RobecoSAM Bronze Class BASF SE Dow Chemical Co Praxair Inc Sustainability Yearbook Members Air Liquide SA Air Products & Chemicals Inc Braskem SA Clariant AG EI du Pont de Nemours & Co Hitachi Chemical Co Ltd LANXESS AG Linde AG Mitsubishi Chemical Holdings Corp Potash Corp of Saskatchewan Inc PTT Global Chemical PCL Solvay SA Syngenta AG Teijin Ltd Umicore SA As of October 31, 2013 Netherlands Netherlands Germany France Brazil Switzerland Japan Germany Germany Japan Canada Thailand Belgium Switzerland Japan Belgium Industry statistics Number of companies in universe 136 Number of companies assessed by RobecoSAM in Assessed companies to total companies in universe (%) 76 Market capitalization of assessed companies to total market capitalization (%) 92 Results at industry level Best weight Economic % Environmental % Social % Total average : 52 best :

59 Coal & Consumable Fuels Driving forces Highlighted criteria Sustainability leaders 2014 RobecoSAM Gold Class Exxaro Resources Ltd* RobecoSAM Bronze Class Adaro Energy Tbk PT Sustainability Yearbook Members Cameco Corp As of October 31, 2013 South Africa Indonesia Canada Industry statistics Number of companies in universe 20 Number of companies assessed by RobecoSAM in Assessed companies to total companies in universe (%) 50 Market capitalization of assessed companies to total market capitalization (%) 69 Results at industry level Best weight Economic % Environmental % Social % Total average : 37 best :

60 Commercial Services & Supplies Driving forces Highlighted criteria Sustainability leaders 2014 RobecoSAM Gold Class KEPCO Plant Service & Engineering Co Ltd* RobecoSAM Bronze Class Herman Miller Inc Sustainability Yearbook Members Brambles Ltd Covanta Holding Corp Dai Nippon Printing Co Ltd Rentokil Initial PLC Waste Management Inc As of October 31, 2013 South Korea Australia Japan United Kingdom Industry statistics Number of companies in universe 47 Number of companies assessed by RobecoSAM in Assessed companies to total companies in universe (%) 87 Market capitalization of assessed companies to total market capitalization (%) 91 Results at industry level Best weight Economic % Environmental % Social % Total average : 39 best :

61 Communications Equipment Driving forces Highlighted criteria Sustainability leaders 2014 RobecoSAM Gold Class Alcatel-Lucent SA* RobecoSAM Bronze Class Nokia OYJ As of October 31, 2013 France Finland Industry statistics Number of companies in universe 19 Number of companies assessed by RobecoSAM in Assessed companies to total companies in universe (%) 68 Market capitalization of assessed companies to total market capitalization (%) 96 Results at industry level Best weight Economic % Environmental % Social % Total average : 46 best :

62 Computers & Peripherals and Office Electronics Driving forces Highlighted criteria Sustainability leaders 2014 RobecoSAM Gold Class Lite-On Technology Corp* RobecoSAM Silver Class Konica Minolta Inc RobecoSAM Bronze Class Fujitsu Ltd Hewlett-Packard Co Ricoh Co Ltd As of October 31, 2013 Taiwan Japan Japan Japan Industry statistics Number of companies in universe 35 Number of companies assessed by RobecoSAM in Assessed companies to total companies in universe (%) 69 Market capitalization of assessed companies to total market capitalization (%) 96 Results at industry level Best weight Economic % Environmental % Social % Total average : 58 best :

63 Construction & Engineering Driving forces Highlighted criteria Sustainability leaders 2014 RobecoSAM Gold Class Hyundai Engineering & Construction Co Ltd* RobecoSAM Silver Class GS Engineering & Construction Corp RobecoSAM Bronze Class Ferrovial SA Sustainability Yearbook Members ACS Actividades de Construccion y Servicios SA Daelim Industrial Co Ltd Fomento de Construcciones y Contratas SA Hochtief AG Outotec OYJ Samsung Engineering Co Ltd Vinci SA As of October 31, 2013 South Korea South Korea Spain Spain South Korea Spain Germany Finland South Korea France Industry statistics Number of companies in universe 67 Number of companies assessed by RobecoSAM in Assessed companies to total companies in universe (%) 72 Market capitalization of assessed companies to total market capitalization (%) 78 Results at industry level Best weight Economic % Environmental % Social % Total average : 53 best :

64 Construction Materials Driving forces Highlighted criteria Sustainability leaders 2014 RobecoSAM Gold Class Siam Cement PCL* RobecoSAM Silver Class Cementos Argos SA Grupo Argos SA Holcim Ltd RobecoSAM Bronze Class Lafarge SA As of October 31, 2013 Thailand Colombia Colombia Switzerland France Industry statistics Number of companies in universe 35 Number of companies assessed by RobecoSAM in Assessed companies to total companies in universe (%) 54 Market capitalization of assessed companies to total market capitalization (%) 81 Results at industry level Best weight Economic % Environmental % Social % Total average : 53 best :

65 Containers & Packaging Driving forces Highlighted criteria Sustainability leaders 2014 RobecoSAM Gold Class Ball Corp* RobecoSAM Silver Class Amcor Ltd MeadWestvaco Corp Sonoco Products Co As of October 31, 2013 Australia Industry statistics Number of companies in universe 20 Number of companies assessed by RobecoSAM in Assessed companies to total companies in universe (%) 75 Market capitalization of assessed companies to total market capitalization (%) 83 Results at industry level Best weight Economic % Environmental % Social % Total average : 59 best :

66 Diversified Consumer Services Driving forces Highlighted criteria Sustainability leaders 2014 Industry statistics RobecoSAM Gold Class Benesse Holdings Inc* As of October 31, 2013 Japan Number of companies in universe 13 Number of companies assessed by RobecoSAM in Assessed companies to total companies in universe (%) 69 Market capitalization of assessed companies to total market capitalization (%) 67 Results at industry level Best weight Economic % Environmental % Social % Total average : 39 best :

67 Diversified Financial Services and Capital Markets Driving forces Highlighted criteria Sustainability leaders 2014 RobecoSAM Gold Class Citigroup Inc* RobecoSAM Bronze Class ING Groep NV UBS AG Sustainability Yearbook Members African Bank Investments Ltd Bank of America Corp Bank of New York Mellon Corp Credit Suisse Group AG Daewoo Securities Co Ltd Daiwa Securities Group Inc Deutsche Bank AG Deutsche Boerse AG Grupo de Inversiones Suramericana SA JPMorgan Chase & Co McGraw Hill Financial Inc Morgan Stanley Northern Trust Corp Provident Financial PLC Samsung Securities Co Ltd As of October 31, 2013 Netherlands Switzerland South Africa Switzerland South Korea Japan Germany Germany Colombia United Kingdom South Korea Industry statistics Number of companies in universe 140 Number of companies assessed by RobecoSAM in Assessed companies to total companies in universe (%) 60 Market capitalization of assessed companies to total market capitalization (%) 91 Results at industry level Best weight Economic % Environmental % Social % Total average : 44 best :

68 Electric Utilities Driving forces Highlighted criteria Sustainability leaders 2014 RobecoSAM Gold Class EDP - Energias de Portugal SA* RobecoSAM Silver Class Iberdrola SA RobecoSAM Bronze Class Cia Energetica de Minas Gerais Endesa SA Enel SpA Terna Rete Elettrica Nazionale SpA Sustainability Yearbook Members Acciona SA Centrais Eletricas Brasileiras SA CPFL Energia SA Duke Energy Corp Entergy Corp Exelon Corp Fortum OYJ Red Electrica Corp SA TransAlta Corp As of October 31, 2013 Portugal Spain Brazil Spain Italy Italy Spain Brazil Brazil Finland Spain Canada Industry statistics Number of companies in universe 101 Number of companies assessed by RobecoSAM in Assessed companies to total companies in universe (%) 55 Market capitalization of assessed companies to total market capitalization (%) 83 Results at industry level Best weight Economic % Environmental % Social % Total average : 54 best :

69 Electrical Components & Equipment Driving forces Highlighted criteria Sustainability leaders 2014 Industry statistics RobecoSAM Gold Class Schneider Electric SA* Sustainability Yearbook Members Fuji Electric Co Ltd Legrand SA Prysmian SpA France Japan France Italy Number of companies in universe 28 Number of companies assessed by RobecoSAM in Assessed companies to total companies in universe (%) 75 Market capitalization of assessed companies to total market capitalization (%) 88 Results at industry level As of October 31, 2013 Best weight Economic % Environmental % Social % Total average : 47 best :

70 Electronic Equipment, Instruments & Components Driving forces Highlighted criteria Sustainability leaders 2014 RobecoSAM Gold Class Samsung Electro-Mechanics Co Ltd* RobecoSAM Silver Class Delta Electronics Inc Samsung SDI Co Ltd Sustainability Yearbook Members AU Optronics Corp FUJIFILM Holdings Corp Hitachi Ltd LG Display Co Ltd LG Innotek Co Ltd Omron Corp Yokogawa Electric Corp As of October 31, 2013 South Korea Taiwan South Korea Taiwan Japan Japan South Korea South Korea Japan Japan Industry statistics Number of companies in universe 73 Number of companies assessed by RobecoSAM in Assessed companies to total companies in universe (%) 74 Market capitalization of assessed companies to total market capitalization (%) 90 Results at industry level Best weight Economic % Environmental % Social % Total average : 50 best :

71 Energy Equipment & Services Driving forces Highlighted criteria Sustainability leaders 2014 RobecoSAM Gold Class Baker Hughes Inc* RobecoSAM Silver Class AMEC PLC Schlumberger Ltd Technip SA RobecoSAM Bronze Class Halliburton Co Sustainability Yearbook Members Bumi Armada Bhd SBM Offshore NV As of October 31, 2013 United Kingdom France Malaysia Netherlands Industry statistics Number of companies in universe 48 Number of companies assessed by RobecoSAM in Assessed companies to total companies in universe (%) 56 Market capitalization of assessed companies to total market capitalization (%) 78 Results at industry level Best weight Economic % Environmental % Social % Total average : 44 best :

72 Food & Staples Retailing Driving forces Highlighted criteria Sustainability leaders 2014 RobecoSAM Gold Class Woolworths Ltd* J Sainsbury PLC RobecoSAM Silver Class Kesko OYJ Koninklijke Ahold NV Sustainability Yearbook Members Carrefour SA Casino Guichard Perrachon SA Delhaize Group SA Seven & I Holdings Co Ltd Tesco PLC As of October 31, 2013 Australia United Kingdom Finland Netherlands France France Belgium Japan United Kingdom Industry statistics Number of companies in universe 66 Number of companies assessed by RobecoSAM in Assessed companies to total companies in universe (%) 59 Market capitalization of assessed companies to total market capitalization (%) 92 Results at industry level Best weight Economic % Environmental % Social % Total average : 48 best :

73 Food Products Driving forces Highlighted criteria Sustainability leaders 2014 RobecoSAM Gold Class Nestle SA* RobecoSAM Silver Class Danone Unilever NV RobecoSAM Bronze Class Campbell Soup Co Grupo Nutresa SA Hershey Co Sustainability Yearbook Members Colombina SA** Ajinomoto Co Inc BRF SA ConAgra Foods Inc General Mills Inc Hormel Foods Corp Mondelez International Inc Switzerland France Netherlands Colombia Colombia Japan Brazil As of October 31, 2013 Industry statistics Number of companies in universe 102 Number of companies assessed by RobecoSAM in Assessed companies to total companies in universe (%) 61 Market capitalization of assessed companies to total market capitalization (%) 90 Results at industry level Best weight Economic % Environmental % Social % Total average : 44 best :

74 Gas Utilities Driving forces Highlighted criteria Sustainability leaders 2014 RobecoSAM Gold Class Gas Natural SDG SA* RobecoSAM Silver Class Enagas SA RobecoSAM Bronze Class Snam SpA Sustainability Yearbook Members Korea Gas Corp As of October 31, 2013 Spain Spain Italy South Korea Industry statistics Number of companies in universe 27 Number of companies assessed by RobecoSAM in Assessed companies to total companies in universe (%) 63 Market capitalization of assessed companies to total market capitalization (%) 78 Results at industry level Best weight Economic % Environmental % Social % Total average : 49 best :

75 Health Care Equipment & Supplies Driving forces Highlighted criteria Sustainability leaders 2014 Industry statistics RobecoSAM Gold Class Abbott Laboratories* Sustainability Yearbook Members Baxter International Inc Medtronic Inc Smith & Nephew PLC United Kingdom Number of companies in universe 43 Number of companies assessed by RobecoSAM in Assessed companies to total companies in universe (%) 65 Market capitalization of assessed companies to total market capitalization (%) 89 Results at industry level As of October 31, 2013 Best weight Economic % Environmental % Social % Total average : 39 best :

76 Health Care Providers & Services Driving forces Highlighted criteria Sustainability leaders 2014 RobecoSAM Gold Class Humana Inc* RobecoSAM Bronze Class Quest Diagnostics Inc UnitedHealth Group Inc Sustainability Yearbook Members Cardinal Health Inc Fresenius Medical Care AG & Co KGaA Mediclinic International Ltd Netcare Ltd As of October 31, 2013 Germany South Africa South Africa Industry statistics Number of companies in universe 49 Number of companies assessed by RobecoSAM in Assessed companies to total companies in universe (%) 57 Market capitalization of assessed companies to total market capitalization (%) 84 Results at industry level Best weight Economic % Environmental % Social % Total average : 37 best :

77 Homebuilding Driving forces Highlighted criteria Sustainability leaders 2014 RobecoSAM Gold Class Sumitomo Forestry Co Ltd* RobecoSAM Silver Class Sekisui Chemical Co Ltd RobecoSAM Bronze Class Taylor Wimpey PLC As of October 31, 2013 Japan Japan United Kingdom Industry statistics Number of companies in universe 19 Number of companies assessed by RobecoSAM in Assessed companies to total companies in universe (%) 68 Market capitalization of assessed companies to total market capitalization (%) 77 Results at industry level Best weight Economic % Environmental % Social % Total average : 40 best :

78 Hotels, Resorts & Cruise Lines Driving forces Highlighted criteria Sustainability leaders 2014 RobecoSAM Gold Class TUI AG* RobecoSAM Silver Class Wyndham Worldwide Corp As of October 31, 2013 Germany Industry statistics Number of companies in universe 16 Number of companies assessed by RobecoSAM in Assessed companies to total companies in universe (%) 63 Market capitalization of assessed companies to total market capitalization (%) 86 Results at industry level Best weight Economic % Environmental % Social % Total average : 55 best :

79 Household Durables Driving forces Highlighted criteria Sustainability leaders 2014 RobecoSAM Gold Class Electrolux AB* RobecoSAM Silver Class Coway Co Ltd RobecoSAM Bronze Class Rinnai Corp As of October 31, 2013 Sweden South Korea Japan Industry statistics Number of companies in universe 16 Number of companies assessed by RobecoSAM in Assessed companies to total companies in universe (%) 63 Market capitalization of assessed companies to total market capitalization (%) 73 Results at industry level Best weight Economic % Environmental % Social % Total average : 50 best :

80 Household Products Driving forces Highlighted criteria Sustainability leaders 2014 RobecoSAM Gold Class Henkel AG & Co KGaA* RobecoSAM Silver Class Colgate-Palmolive Co LG Household & Health Care Ltd Reckitt Benckiser Group PLC RobecoSAM Bronze Class Svenska Cellulosa AB SCA As of October 31, 2013 Germany South Korea United Kingdom Sweden Industry statistics Number of companies in universe 15 Number of companies assessed by RobecoSAM in Assessed companies to total companies in universe (%) 73 Market capitalization of assessed companies to total market capitalization (%) 96 Results at industry level Best weight Economic % Environmental % Social % Total average : 66 best :

81 Industrial Conglomerates Driving forces Highlighted criteria Sustainability leaders 2014 RobecoSAM Gold Class Siemens AG* RobecoSAM Silver Class Koninklijke Philips NV Sustainability Yearbook Members 3M Co General Electric Co As of October 31, 2013 Germany Netherlands Industry statistics Number of companies in universe 44 Number of companies assessed by RobecoSAM in Assessed companies to total companies in universe (%) 61 Market capitalization of assessed companies to total market capitalization (%) 94 Results at industry level Best weight Economic % Environmental % Social % Total average : 41 best :

82 Insurance Driving forces Highlighted criteria Sustainability leaders 2014 RobecoSAM Gold Class Allianz SE* Swiss Re AG RobecoSAM Silver Class Aegon NV Muenchener Rueckversicherungs AG RobecoSAM Bronze Class Aviva PLC AXA SA Dongbu Insurance Co Ltd NKSJ Holdings Inc Samsung Life Insurance Co Ltd Standard Life PLC Storebrand ASA Sustainability Yearbook Members Assicurazioni Generali SpA Delta Lloyd NV Insurance Australia Group Ltd Legal & General Group PLC Mapfre SA Samsung Fire & Marine Insurance Co Ltd Tokio Marine Holdings Inc Zurich Insurance Group AG As of October 31, 2013 Germany Switzerland Netherlands Germany United Kingdom France South Korea Japan South Korea United Kingdom Norway Italy Netherlands Australia United Kingdom Spain South Korea Japan Switzerland Industry statistics Number of companies in universe 129 Number of companies assessed by RobecoSAM in Assessed companies to total companies in universe (%) 54 Market capitalization of assessed companies to total market capitalization (%) 86 Results at industry level Best weight Economic % Environmental % Social % Total average : 48 best :

83 IT Services & Internet Software and Services Driving forces Highlighted criteria Sustainability leaders 2014 RobecoSAM Gold Class SK C&C Co Ltd* RobecoSAM Bronze Class Amadeus IT Holding SA Wipro Ltd Sustainability Yearbook Members AtoS Indra Sistemas SA Infosys Ltd International Business Machines Corp NTT Data Corp Rackspace Hosting Inc Tata Consultancy Services Ltd Teradata Corp As of October 31, 2013 South Korea Spain India France Spain India Japan India Industry statistics Number of companies in universe 77 Number of companies assessed by RobecoSAM in Assessed companies to total companies in universe (%) 70 Market capitalization of assessed companies to total market capitalization (%) 90 Results at industry level Best weight Economic % Environmental % Social % Total average : 40 best :

84 Leisure Equipment & Products and Consumer Electronics Driving forces Highlighted criteria Sustainability leaders 2014 RobecoSAM Gold Class Panasonic Corp* RobecoSAM Silver Class LG Electronics Inc Sustainability Yearbook Members Sony Corp As of October 31, 2013 Japan South Korea Japan Industry statistics Number of companies in universe 21 Number of companies assessed by RobecoSAM in Assessed companies to total companies in universe (%) 90 Market capitalization of assessed companies to total market capitalization (%) 92 Results at industry level Best weight Economic % Environmental % Social % Total average : 49 best :

85 Life Sciences Tools & Services Driving forces Highlighted criteria Sustainability leaders 2014 Industry statistics RobecoSAM Gold Class Life Technologies Corp* Sustainability Yearbook Members Agilent Technologies Inc Number of companies in universe 14 Number of companies assessed by RobecoSAM in Assessed companies to total companies in universe (%) 57 Market capitalization of assessed companies to total market capitalization (%) 75 As of October 31, 2013 Results at industry level Best weight Economic % Environmental % Social % Total average : 41 best :