London Luxembourg Milan
CSR e Finanza
Milano, 8 ottobre – CSR Manager Network
The market of ESG and value-based investing
USD 5 trillion global value bases investing
(socially responsible funds, community investments, activist shareholder investing, religious and ideological
funds).
USD 15 trillion AUM supporting PRI, or over 400 global investment institutions.
Over 170 financial
Statements.
www.ecpindices.com
institutions worldwide are signatories to the ESG principles outlined in the UNEP FI
Bloomberg: ECPS <GO>
Reuters: ECAPITAL
2
ESG investing is still mainly a US and European business
USD 5 trillion global value bases investing, as of May 2008
(socially responsible funds, community investments, activist shareholder investing, religious and ideological funds).
Value based investing Total
SRI Total
US
Europe
Asia-Pacific
Australia
China
Hong Kong
Japan
Malaysia
Multi-country
New Zealand
Singapore
South Korea
18
Taiwan
South Africa
Sharia funds
Number of funds
AUM (Billions USD)
246
451
163
89
1
6
34
3
7
1
2
5,243.8
4,243.8
2,711.0
1,507.2
24.0
16.9
0.3
0.3
3.1
0.0
1.0
0.9
0.1
1.3
2
21
NA
1.6
1,000.0
Source: ML ISG, Social Investment Forum, OWW Consulting Research, May 2008.
www.ecpindices.com
Bloomberg: ECPS <GO>
Reuters: ECAPITAL
3
ESG investment has an attracting growth potential
ESG market AUM has grown by
22pct annually since 2003, while
global AUM grew by only 10pct
By the end of 2007, global ESG AUM
reached USD 5 trio
United States leads the ESG market
with USD 2.7 trio (10pct of total
AUM), followed by the UK with USD
1.2 trio AUM (20pct of total AUM)
Asian ESG AUM now accounts for
USD 10 bio (only 2pct of total AUM):
Source: Robeco, Booz & Co
www.ecpindices.com
Bloomberg: ECPS <GO>
Reuters: ECAPITAL
4
ESG in Italy is still a small proportion of total AUM
Source: Eurosif, European SRI Study 2008
www.ecpindices.com
Bloomberg: ECPS <GO>
Reuters: ECAPITAL
5
ECPI analysis covers all the issues related to ESG analysis
The covered topics are compliant with both the Principles of UN Global Compact and the UN PRI
Management system
Community relations
Markets
Employees
Environment
Products and
Production process
Executives compensation
Human rights
Supply chain
management
Health & Safety
Environmental impact
Controversial products
and services
Shareholders rights
Impact on local
communities
Anticompetitive practices
Compensation policy/
Labour conditions
Pollution
Health & Safety
Marketing practices
Freedom of association
Waste management
Sales practices
Forced labour
Animal treatment
Corruption & Bribery
Child labour
Activity in controversial
countries
Diversity management
(race, gender,
disabilities)
Compliance with international standards
Compliance with national legislation
www.ecpindices.com
Bloomberg: ECPS <GO>
Reuters: ECAPITAL
6
ECPI ESG Rating Methodology
SOURCES
Public Corporate
news
Qualified Data
Vendors
Affiliation to
International
Networks
Qualified NGO
Network
CRITERIA
Relevance
Accuracy
Weight
Predictiveness
Investor Relations
Context
Local Academic
Research Centres
Sector specificity
Investors’ Group
Affiliate Access
RATING
EEE to E-,
NE and F
Eligible and Investable
Selections of:
Equity and Bonds
Funds
Portfolios
Market Indices
Interrelations
Thematic ESG
Research
Own Advisory Board
www.ecpindices.com
Bloomberg: ECPS <GO>
Reuters: ECAPITAL
7
ECPI ESG Index Family is the widest in the market
Beta Indices
Alpha Indices
ECPI Beta Indices have been designed to have a high correlation
to "mainstream/traditional" market benchmarks, with a
sustainability screening.
ECPI Alpha indices have been designed to outperform the
comparable "traditional" reference market.
Equity
 Ethical Index Euro
Equity
 Ethical Index EMU
 Global Alpha Equity 100
 Ethical Index Global
Bias








Ethical
Ethical
Ethical
Ethical
Ethical
Ethical
Ethical
Ethical
 Us Alpha 30 Equity
Index Euro Govt
Index Global Govt
Index Global Agency & Supr
Index Euro Corporate
Index Euro Agency & Supr
Index Global Composite
Index Euro Composite
Index Euro Corporate Liquid
 Ethical Index Euro Tradable
Bias
 Global Commodities Equity
 Global Climate Change Equity
 Global Eco & Ethical Equity
 Carbon Winners Equity
 Asian Infrastructures Equity
 Global ESG Alpha Equity
 Longevity Winners Equity
 Global Blue Gold Equity
 Ethical Index Global Tradable
…
 Global Top 30 Dividend Yield
 ART Sustainable
 Ethical Index Top Ethical DY
Hedge
Funds
 Emerging Markets Equity
Real Estate
 Europe Alpha Property Equity
 Global Top 25 Ethical
Emerging
Markets
 Alpha Top Dividend Yield
 Global Renewable Energy Equity
Alpha Indices
Beta Indices
Fixed
Income
 Global Alpha Equity 40
 Emerging Markets Bond
www.ecpindices.com
 DBX Equity Select Alpha
 Global Eco Real Estate & Building
Bloomberg: ECPS <GO>
Reuters: ECAPITAL
8
London, Milan, Luxembourg.
Aldo Bonati
Aldo Bonati joined ECPI in 2007. He is now Head of the Rating and Research department.
He is in charge of developing the ESG screening process and the research methodology and to expand the sustainability
concept in different asset classes (equity, fixed income, hedge funds, microfinance institutions) while managing the research
team.
Previously he was Product manager with Citigroup and BNL Gestioni Asset Management since 1999.
He holds a 4-year Economics Degree with a major in International economy from Bocconi University where he graduated in
1999. In 2007 he gained and a MSc with honors in Management of Not for profit Organizations at SDA Bocconi School of
Management.
a.bonati@ecpindices.com
Mob +39 340 563 6169
Luxembourg
London
Milan
5, Rue Goëthe - L-1637 Luxembourg
100 Pall Mall St. James's - London SW1YENQ - UK
Piazza Diaz, 7 - 20123 Milan, Italy
Tel +352 26 845633
Tel +44 (0) 20 7321 5677
Tel +39 02 7214 11
Disclaimer
This document has been prepared by Mittel Corporate Finance S.p.A. and/or any of its subsidiaries and affiliates, being noted that Mittel Corporate Finance S.p.A. is entirely owned by Mittel S.p.A., a company organized and existing under the laws of Italy, with registered office at Piazza Armando
Diaz, n.7 I-20123 Milan, Italy (the “ECP Group Companies”) as part of their internal research activity. The information provided herein and, in particular, the data contained in this document are taken from information available to the public. All information contained herein is obtained from
sources believed by it to be accurate and reliable. While the opinions and information contained in this document are based on public sources believed to be reliable and in good faith, ECP Group Companies have not independently verified the accuracy of such public sources. Because of the
possibility of human, technical or whatsoever kind of similar error, however, such information is provided “as is” without warranty of any kind and ECP Group Companies, in particular, make no representation or warranty, whether express or implicit, as to the fairness, accuracy, timeliness,
completeness, merchantability and/or fitness of any such information and opinions contained in this document. Accordingly, neither ECP Group Companies nor any of their respective directors, managers, officers or employees shall be held liable for whatever reason (including, without limitation,
liability in negligence) for any loss (including consequential loss), expense, consequential, special, incidental, direct or indirect or similar damage, whether or not advised of the possibility of such damage, in connection with the fairness, accuracy, timeliness, completeness, merchantability and/or
fitness of the information and opinions contained in this document and/or arising from any use or performance of this document or its contents or otherwise arising in connection with this document.
Any opinions, forecasts or estimates contained herein constitute a high-level information statement only valid as at the date of its release. There can be no assurance that the evolution of the information contained herein and/or any future events will be consistent with such opinions, forecasts or
estimates. Any information herein is at any time subject to change, update or amendment subsequently to the date of this document, with no undertaking by ECP Group Companies to notify such change, update or amendment. This document is not, nor may it be construed as to constitute a
recommendation to make any kind of investment decision or an offer for sale or subscription of or a solicitation of any offer to buy or subscribe for any financial instrument. Accordingly, this document may not be used as a solicitation or an offer for sale or subscription, and any solicitation or offer
shall be made only in accordance with all applicable laws and regulation, including, whenever applicable, the filing of a prospectus with the relevant authorities. ECP Group Companies are not financial advisors subject to special authorization and thus do not provide formal financial advice in the
area of investment nor perform any asset management activity. ECP Group Companies recommend to potential investors wishing to be provided with formal financial advice in the area of investment to contact a financial advisor duly authorized by the competent regulatory authority of its country.
ECP Group Companies publish researches on a regular basis. This publication has been prepared on behalf of ECP Group Companies solely for information purposes. All the information contained herein is copyrighted in the name of ECP Group Companies, and none of such information may be copied
or otherwise reproduced, except for personal use only, further transmitted, transferred, published, disseminated, redistributed or resold, in whole or in part, in any form or manner or by any means whatsoever, by any person without ECP Group Companies’ prior written consent.
www.ecpindices.com
Bloomberg: ECPS <GO>
Reuters: ECAPITAL
9
Luxembourg
Milan
5, Rue Goëthe
Piazza Diaz, 7
L-1637 Luxembourg
20123 Milan, Italy
Tel +352 26 845633
Tel +39 02 7214 11
Fax +352 26 845634
Fax +39 02 72141616
London
100 Pall Mall St. James's
London SW1YENQ - UK
Tel +44 (0) 20 7321 5677
Fax +44 (0) 20 7321
www.ecpindices.com
Bloomberg: ECPS <GO>
Reuters: ECAPITAL
Disclaimer
This document has been prepared by Mittel Corporate Finance S.p.A. and/or any of its subsidiaries and affiliates, being noted that Mittel Corporate Finance S.p.A. is entirely owned by Mittel S.p.A., a company organized and existing under
the laws of Italy, with registered office at Piazza Armando Diaz, n.7 I-20123 Milan, Italy (the “ECP Group Companies”) as part of their internal research activity. The information provided herein and, in particular, the data contained in this
document are taken from information available to the public. All information contained herein is obtained from sources believed by it to be accurate and reliable. While the opinions and information contained in this document are based on
public sources believed to be reliable and in good faith, ECP Group Companies have not independently verified the accuracy of such public sources. Because of the possibility of human, technical or whatsoever kind of similar error,
however, such information is provided “as is” without warranty of any kind and ECP Group Companies, in particular, make no representation or warranty, whether express or implicit, as to the fairness, accuracy, timeliness, completeness,
merchantability and/or fitness of any such information and opinions contained in this document.
Accordingly, neither ECP Group Companies nor any of their respective directors, managers, officers or employees shall be held liable for whatever reason (including, without limitation, liability in negligence) for any loss (including
consequential loss), expense, consequential, special, incidental, direct or indirect or similar damage, whether or not advised of the possibility of such damage, in connection with the fairness, accuracy, timeliness, completeness,
merchantability and/or fitness of the information and opinions contained in this document and/or arising from any use or performance of this document or its contents or otherwise arising in connection with this document.
Any opinions, forecasts or estimates contained herein constitute a high-level information statement only valid as at the date of its release. There can be no assurance that the evolution of the information contained herein and/or any
future events will be consistent with such opinions, forecasts or estimates. Any information herein is at any time subject to change, update or amendment subsequently to the date of this document, with no undertaking by ECP Group
Companies to notify such change, update or amendment.
This document is not, nor may it be construed as to constitute a recommendation to make any kind of investment decision or an offer for sale or subscription of or a solicitation of any offer to buy or subscribe for any financial instrument.
Accordingly, this document may not be used as a solicitation or an offer for sale or subscription, and any solicitation or offer shall be made only in accordance with all applicable laws and regulation, including, whenever applicable, the
filing of a prospectus with the relevant authorities. ECP Group Companies are not financial advisors subject to special authorization and thus do not provide formal financial advice in the area of investment nor perform any asset
management activity. ECP Group Companies recommend to potential investors wishing to be provided with formal financial advice in the area of investment to contact a financial advisor duly authorized by the competent regulatory
authority of its country.
ECP Group Companies publish researches on a regular basis. This publication has been prepared on behalf of ECP Group Companies solely for information purposes. All the information contained herein is copyrighted in the name of ECP
Group Companies, and none of such information may be copied or otherwise reproduced, except for personal use only, further transmitted, transferred, published, disseminated, redistributed or resold, in whole or in part, in any form or
manner or by any means whatsoever, by any person without ECP Group Companies’ prior written consent.
www.ecpindices.com
Bloomberg: ECPS <GO>
Reuters: ECAPITAL
10