challenge, drivers and opportunity: sustainability & the ... csr forum... · association for...
TRANSCRIPT
Challenge, Drivers and Opportunity:Sustainability & the Taiwan Electronics Sector
Association for Sustainable & Responsible Investment In Asia
ACER CSR FORUM
David St. Maur Sheil, Director December 2008
Association for Sustainable & Responsible Investment in Asia www.asria.org
The ESG Challenge
Electronics Industry Challenge• Asian Regulatory regimes slowly emerging• Managing risk in the supply chain• Sector initiatives & co-operation• Stakeholder engagement• Transparency & disclosure• Maintaining competitiveness in current
unstable financial environment
Challenge
Drivers
Opportunities
Image:Enorth
Association for Sustainable & Responsible Investment in Asia www.asria.org
The Drivers
Drivers • Sustainable investment (SRI) & CSR• Standards & regulatory regimes• Fluctuating energy costs• Acceleration of climate change• Infrastructure investment• Establishment of Asian brands• Changing consumer attitudes
Challenge
Drivers
Opportunities
Taipei Times, 1st December 2008
Association for Sustainable & Responsible Investment in Asia www.asria.org
SRI Funds Globally: US$4.5 Trillion
US$36bn funds & church assets
US$2.3tn in funds and portfolios
Canada US$433bn
Japan and rest of Asia
US$10bn+
UK: US$1.1tn in funds and portfolios
Rest of Europe US$340bn in funds
and portfolios
Association for Sustainable & Responsible Investment in Asia www.asria.org
Korea37 funds, incl.
Allianz Global InvestorsDaishin Investment TrustDeutsche Asset ManagementKDB Asset ManagementNonghyup CA Samsung Investment ManagementSH Asset Management
MalaysiaMaybank Mgt Bhd.Phillip Mutual
IndonesiaSeveral Islamic Funds
SingaporeUOB Asset Mgt
TaiwanUBS Global Asset Mgt.Allianz Global Investors
IndiaABN Amro
Australia 89 funds, incl.
HendersonAustralian EthicalBIAM AustraliaBT Financial GroupChallenger GroupEquity TrusteesGlebe Hunter HallING GroupKaplan PartnersSAM Sustainable State Street Global AdvisorsTOWER Asset MgmtWarrakiri Asset Mgmt
Japan 60 funds, incl.• AIG Global• Asahi Life Asset Management • Commerz Asia• Daiwa SB Investments • DIAM • Invesco Japan• Mitsubishi UFJ Asset Management • Nikko Asset Management • Nomura Asset Management • SG Asset Management• Sompo Japan Asset Management • Sumitomo Mitsui Asset Mgmt.• UBS Global Asset Management • UFJ Partners Asset Management
Hong Kong20 funds, incl.• ABN Amro• HSBC Investment• Tai Fook.• UBS Global Asset Mgt.• Lloyd George Management
Over 200 SRI Funds in Asia Today
Full details atASrIA SRI Fund Portal
www.asria.org
Association for Sustainable & Responsible Investment in Asia www.asria.org 6
Drivers: Standards and Regulations
Global & National Standards & Regulatory Regimes• UN Global Compact• UNEPFI - Principles for Responsible Investment (PRI)• Carbon Disclosure Project (CDP)• Global Reporting Initiative (GRI)• Equator Principles• FTSE4Good, Dow Jones Sustainability Index, • Climate change Indexes • ISO14001, SA8000, REACH, ROHS, WEEE
Industry Standards and Resources• Electronic Supply Chain Initiative
Association for Sustainable & Responsible Investment in Asia www.asria.org
CDP—Asia’s Carbon Leaders are
Stepping Forward
Investor-CorporateDialogue on
Climate Change
Disclosure: CDP Process in Asia
Association for Sustainable & Responsible Investment in Asia www.asria.org
CDP 2008, Asia Ex-Japan Report Total 220 Companies
39%
28%
5%
28%
AnsweredQuestionnaire
InformationProvided
Declined to Participate
No Response
ChinaHong KongIndiaIndonesiaKoreaMalaysiaSingaporeTaiwanThailand
Disclosure: CDP Asian Response Metrics
Data: Association for Sustainable & Responsible Investment in Asia (ASrIA), CDP 2008 Report, Asia Ex-Japan
Association for Sustainable & Responsible Investment in Asia www.asria.org
CDP6 Asian Metrics
Data: Association for Sustainable & Responsible Investment in Asia (ASrIA), CDP 2008 Report, Asia Ex-Japan
Association for Sustainable & Responsible Investment in Asia www.asria.org
Singapore Korea Taiwan
Yuanta Financial HoldingsAU OptronicsChina SteelAsustek Computer IncAcer IncChai Mei OptoelectronicsCompal ElectronicsDelta ElectronicsFoxconn TechnologyHigh Tech ComputerHon Hai Precision Industry CompanySiliconware Precision IndustriesTaiwan Semiconductor ManufacturingUnited Microelectrics
Highest response by Country
Disclosure: CDP Asian Response Metrics
CDP 2008 - Asia 220Response Rates:28% Answered Questionnaire
Data: Association for Sustainable & Responsible Investment in Asia (ASrIA), CDP 2008 Report, Asia Ex-Japan
Association for Sustainable & Responsible Investment in Asia www.asria.org 11
Drivers: Climate Change - The Perfect Storm
Guangzhou train station during the January 2008 Chinese New Year
Climate Change Risks• 70% of respondents cited
physical risks linked to climate change
• Flooding, wind damage, drought, and dust storms top the list of risks
• Impacts on schedules• Damage to infrastructures• Disruption to supply chains• Increasing insurance costs• Rising sea-levels
Association for Sustainable & Responsible Investment in Asia www.asria.org
Responding to Climate Change
Challenge
Drivers
Opportunities
Opportunities• Operational & Efficiency gains• Management of supply chain risk• Improved credit rating • Climate & green initiatives, including
products, services and CDM investments
• Positive engagement with key stakeholder & industry groups
Association for Sustainable & Responsible Investment in Asia www.asria.org 13
Opportunity: Climate Initiatives
Data: Association for Sustainable & Responsible Investment in Asia (ASrIA), CDP 2008 Report, Asia Ex-Japan
Association for Sustainable & Responsible Investment in Asia www.asria.org
Key Future Tech AbatementOpportunities• Supply Chain & Logistics• Sustainable Transport• Green Buildings• Intelligent grids• Transmission & Drives (T&D)
in industrial processes• Dematerialisation
The Tech sector’s direct carbon footprint amounts to 2% of the global man-made carbon footprint in 2007, and is expected to grow to 6% by 2020, largely by growth in emerging markets (McKinsey)
The potential opportunity of Tech to reduce CO2 emissions in industries of the future is estimated to be 5 times that of its own footprint.
Tech & Climate Change
Green data centre, Iceland, Data Islandia
Part of the Problem and
Part of the Solution
Association for Sustainable & Responsible Investment in Asia www.asria.org
Drivers: Shifts from high carbon to low carbon economies
• Physical to virtual infrastructures (bits to bytes)• Motor-age to sustainable transport (cars to rails)• Air-travel to tele-conferences (airways to airwaves)• old tech to clean tech (coal to solar) • Energy intensive to Green Building (high-rise to high-wise)• Consumer lifestyle to green lifestyle (ego to eco)
Electronics industry is a solutions provider
Association for Sustainable & Responsible Investment in Asia www.asria.org
Criteria of Tech Companies Commitment to ESG
• Board level responsibility• policies and management
systems• active supply chain
engagement• participation in sector &
cross-industry initiatives• engagement with policy and
regulatory bodies• environmentally friendly
products & services• dedicated R&D
ESG: What are SRI Investors Looking For?
Key industry challengeIndustry collaboration to:• raise standards• reduce supply chain overlap• improve confidence with disclosure
Focus:CDPEICC
Association for Sustainable & Responsible Investment in Asia www.asria.org
Climate Change Resources
www.asria.org
Association for Sustainable & Responsible Investment in Asia www.asria.org
Climate Change Resources
www.asria.org
Association for Sustainable & Responsible Investment In Asia
www.asria.org
News Research Resources
Membership
David St. Maur SheilDirector of Operations
[email protected] tel: 09 8305 2740