6th CSR ONLINE AWARDS

DIGITAL DISRUPTION

AND THE FUTURE OF CSR #CSRawards

Milan, 27-28 May 2014

Manjit Jus

Sustainability Operation Manager,

RobecoSAM

FINANCIAL MATERIALITY AND CLARITY IN

MULTI-STAKEHOLDER REPORTING

Milan, May 27, 2014

Financial Materiality and Clarity in Multi-stakeholder Reporting

RobecoSAM at a glance

• Investment specialist focused exclusively on Sustainability Investing since 1995

• Offering complementary capabilities to Sustainability Investing

• Powering the Dow Jones Sustainability Indices since 1999

• USD 11.8 billion total assets (as per 30.06.2013)

• Servicing a global and diversified client base

• Approximately 130 employees headquartered in Zurich, Switzerland

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RobecoSAM Corporate Sustainability Assessment

Overview

• Over 3,000 companies invited annually

• 818 companies participated in 2013

Methodology

• Integrated assessment of economic, environmental and social criteria with a

strong focus on long-term shareholder value

• Rules-based methodology and use of primary research

• Focus on best-in-class companies. Yearly review of component selection and

continuous monitoring of companies

• Assurance of the assessment process by Deloitte

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0

100

200

300

400

500

600

700

800

900

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Company Participation

CAGR: + 7.4%

Increasing participation of companies in DJSI over the years

RobecoSAM CSA: participation trend

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How we use sustainability reporting

• Verification of submitted answers and data

• Reporting on targets and progress of sustainability initiatives

• Identification of material issues and the stakeholder engagement process

• How sustainability initiatives align with long-term corporate strategy

• The business and financial benefits of sustainability initiatives

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Financial Materiality

RobecoSAM’s definition of materiality of sustainability:

“Any factor which might have a present or future impact on companies‘ value

drivers, competitive position, and thus on long-term shareholder value

creation“

Forms of Capital:

Intellectual capital Customer capital

Manufactured capital

Human capital Environmental capital

Social capital

Financial capital & business model

Impact on Financials:

Growth (Revenue) Profitability (Costs) Capital Efficiency

Risk profile

Key Question: How do different forms of capital impact financial performance?

RobecoSAM Approach

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Source: RobecoSAM Corporate Sustainability Assessment

Reporting on materiality

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0

100

200

300

400

500

600

700

800

900

Environmental

2012

Social 2012 Environmental

2013

Social 2013

Linking sustainability and business priorities

Total

CSR Report

Annual Report

Outcome and statistics from the 2013 Corporate Sustainability Assessment

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0% 10% 20% 30% 40% 50%

2013

2012

0% 20% 40% 60% 80%

Reporting on risk identification &

Exposure

Internal risk identification

process

26%

2%

18%

54%

Qualitative

Quantitative

Qualitative & Quantitative

No Reporting

Analysing risks vs. reporting on risks

Public reporting on Standards for Suppliers

What do companies report on?

Source: RobecoSAM’Corporate Sustainability Assessment 9

Focus on financial materiality

How useful do investors find the different types of non-financial information when making investment decisions?*

Source: EY Tomorrow’s investment rules - Global survey of institutional investors on non-financial performance, April 2014

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Annual Report

31%

Integrated Report 18% Corporate website

18%

Press coverage 13%

ESG data providers 8%

Sustainability report

7% Sustainability

rankings 3%

Social media

2%

Shifting focus of sustainability reporting

• Focus on materiality – financial materiality vs. stakeholders perception

• Integrated vs. decentralized reporting

• Who are we reporting for?

• How often do we report?

• Importance of third-party verification

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Distribution and consumption of non-financial data

• Reducing the “reporting burden”

• Improving data quality

• Improving comparability of data

• Digital reporting

• Third-party software

• XBRL

• Direct data transfers

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Questions?

Manjit Jus

Sustainability Operations Manager

+41 44 653 12 44

Manjit.jus@robecosam.com

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Disclaimer

No warranty This publication is derived from sources believed to be accurate and reliable, but neither its accuracy nor completeness is guaranteed. The material and information in this publication are provided "as is" and without warranties of any kind, either expressed or implied. RobecoSAM AG and its related, affiliated and subsidiary companies disclaim all warranties, expressed or implied, including, but not limited to, implied warranties of merchantability and fitness for a particular purpose. Any opinions and views in this publication reflect the current judgment of the authors and may change without notice. It is each reader's responsibility to evaluate the accuracy, completeness and usefulness of any opinions, advice, services or other information provided in this publication.

Limitation of liability All information contained in this publication is distributed with the understanding that the authors, publishers and distributors are not rendering legal, accounting or other professional advice or opinions on specific facts or matters and accordingly assume no liability whatsoever in connection with its use. In no event shall RobecoSAM AG and its related, affiliated and subsidiary companies be liable for any direct, indirect, special, incidental or consequential damages arising out of the use of any opinion or information expressly or implicitly contained in this publication.

Copyright Unless otherwise noted, text, images and layout of this publication are the exclusive property of RobecoSAM AG and/or its related, affiliated and subsidiary companies and may not be copied or distributed, in whole or in part, without the express written consent of RobecoSAM AG or its related, affiliated and subsidiary companies.

No Offer The information and opinions contained in this publication constitutes neither a solicitation, nor a recommendation, nor an offer to buy or sell investment instruments or other services, or to engage in any other kind of transaction. The information described in this publication is not directed to persons in any jurisdiction where the provision of such information would run counter to local laws and regulation.

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6th CSR ONLINE AWARDS

DIGITAL DISRUPTION

AND THE FUTURE OF CSR #CSRawards

Milan, 27-28 May 2014