investing with the impact indicator eng

Drs Alcanne Houtzaager MAPublic Equity Impact Investor

Speaker on Impact Investing

Investing with the Impact Indicator©

Impact Investing: definition

Investing in measured & benchmarked social and/or environmental goals and financial returns.

Impact Investing is financially sustainable.

Impact Investing aims at upscaling impact, preferably to the maximum, i.e. Global solutions

Drs Alcanne Houtzaager MA, Public Equity Impact Investor, Speaker on Impact Investing trends, Impact Investing News Blog.

Mapping Impact Investing

Classic (exclusive)

Philanthropic (exclusive)

Direct (exclusive and inclusive)

Indirect (inclusive)

Crowdfunding for Impact (inclusive)

(Informal investing (exclusive)

Drs Alcanne Houtzaager MA: Public Equity Impact Investor, Speaker on Impact Investing trends, Impact Investing News Blog

Impact Investing Universe

Basic needs & Impact catalysts

with

Intended & measured Impact


Impact Indicator©

0 = I just care about financial returns.

1 = I care about financial returns and do not invest in harmful industries.

2 = I care about financial returns & Environment, Social & Governance (ESG) risks.

(Formally there could -1 = I'll invest in anything: even illegal weapon builders, totalitarian regimes etc.)

Inspired by the Sonen Capital § KL Felicitas Foundation portfolio model


Impact indicator©

3 = I care about financial returns & ESG opportunities.

4 = I care about financial returns & global threats & solutions.

5 = I care about financial returns & peoples basic needs.

6 = I want to invest in impact & am willing to give up return.

Inspired by the Sonen Capital § KL Felicitas Foundation portfolio model



Collect online available basic data on the investment products:

Company & Profile: (core)activities & strategy, employment (characteristics), stock data, investor relations information, etc....

Employment & Stock data

Sustainability: Corporate Social Responsibility or Environment-Social-Governance: strategies, ambitions & implementation.



Collect online available free basic data on:

Transparency: reporting record, systems & standards such as Global Reporting Initiative (GRI), UN Global Compact & UN Principles for Responsible Investment, Sustainability reporting & systems such as CDP (Carbon Disclosure Project) or CDP Water Disclosure. Impact reporting and reporting on relevant* Key Performance Indicators.*on the core activities, impact & the Materiality of Corporate Sustainability data.

Sustainability indices, benchmarks & listings: (e.g. SRI, sustainability or green indices, CSR Hub (+15.000 corps & & sustainable-investment.org (2.600 corporations)

Awards & recognition: (external & sector reviews).


Who benefits?

Product level: brands, production lines etc.

In the future: Impact scaling ambitions & strategy.

Global level: issue & (fair trade) supply chain.


Who benefits?

Impact level: according to the Impact Indicator©, note that an investment can partially achieve multiple levels.

E.g. an investment product with 25% health sector investments reaches level 5 (basic needs) for 25%


Examples:

A Pennystock active in an impact sector (without labor intensive reporting i.e. transparency procedures).

A Best in Class multinational active in impact sectors.

An ETP, Exchange Traded Product (or Fund), in the impact sector: Health

A Sustainable ETP based on a Low Carbon Emmission Index.


Example: Accsys Technologies

Accsys Technologies PLC: a British pennystock fund, listed at London Stock Exchange and Amsterdam NYSE

Profile: (core)activity: production, sale and licensing of Accoya® solid wood and the licensing of Tricoya® wood elements technology. Development & commercialisation of a range of transformational technologies for wood (chips, fibres and particles) for use as class leading, environmen-tally sustainable, construction materials.

Employment: 100 employees.

Stockdata: ISIN GB00BQQFX454 IEX: http://www.iex.nl/Aandeel-Koers/247828/Accsys-Technologies.aspx


http://www.iex.nl/Aandeel-Koers/247828/Accsys-Technologies.aspx


Sustainability: Accsys Technologies doesn't have a separate sustainability page on its site. But an Impact report:(pdf, 32 pag.)

''Accsys aims to reduce the consumption of endangered hardwood species and non-renewable, high carbon emitting building materials. Its chemical technologies impart enhanced properties of durability & dimensional stability to typically fast-growing, sustainably sourced renewable forest products. This is achieved with a lower carbon footprint – taking a whole life view (in production, period of use and end-of-life disposal) – without degrading resources of non-renewable materials.' Source: http://socialstockexchange.com/wp-content/uploads/2014/09/Accsys-2nd-Year-Impact-Report3110142.pdf


http://socialstockexchange.com/wp-content/uploads/2014/09/Accsys-2nd-Year-Impact-Report3110142.pdf


Transparency: Accsys is a small company and doesn't use labor intensive reporting systems, but impact reporting.

Sustainability indices & benchmarks: CSRHub puts it with Forestry & Fishing companies at the 23rd position (of 47) with low scores, but it is only partially rated. Part of the ASN Bank and Triodos Bank investment universe.

Award: Market Development award 2011 TRADA. Marketing of products and licences is impactant for impact scaling.


Who benefits?

At product level: Accsys’s Technologies provides additional customer choice.

Impact scaling: through an international distribution network and licence agreements that encourage trade and employment.

At global level: slower depletion of natural forestry and other resources is seen as a contributor to environmental preservation, improved carbon sequestration and reduced harmful emissions. This also applies at country niveau: where governments can influence behaviour through legislation, regulation and local target setting.


Who benefits?

Impact levels: 3, 4 & 5.

Accsys Technologies is a 100% ESG opportunity company (level 3), aiming at a worldwide threat: deforestation (level 4) and nature preservation (level 5).


Example: Unilever NV/PLC

Unilever: A Dutch-British multinationaal listed at the London Stock Exchange, Amsterdam NYSE & in the VS NYSE.

Profile: (core)activity: ''We meet everyday needs for nutrition, hygiene and personal care with brands that help people feel good, look good and get more out of life.''

Employment: 173.000

Stockdata: IEX Unilever AEX NL0000388619

Drs Alcanne Houtzaager MA, Public Equity Impact Investor, Spreker over Impact Investing trends, Impact Investing Nieuws Blog.

http://www.iex.nl/Aandeel-Koers/11962/Unilever.aspx

Example: Unilever

Transparency: 'we assess our progress against three indices: UN Global Compact, GRI and UN Millennium Development Goals (MDGs)'. Focus, KPI's: CO³ & Water.

Sustainability: Our purpose as a business is about hel-ping to build a world where everyone lives well and within the natural limits of the planet: Brands that offer balanced nutrition, good hygiene and the confidence that comes from having clean clothes, clean hair and good skin; Products which are sustainably sourced and used in a way which protects the earth’s natural resources; Respect for the rights of the people and communities. Source: Unilever/sustainability. VP Sustainable Business & Communications Europe: Drs Truus Huisman.



http://www.unilever.com/sustainable-living-2014/our-approach-to-sustainability/

Example: Unilever

Indices & benchmarks: Robeco SAM: Sector leader, Best-in-Class (Food & Beveager) > Dow Jones Sustainability Index (US), FTSE4Good (UK), Vigeo (Frans). Op Sustainable-Investment.org: 23 indices and 18 fondsen.

CSRHub: http://www.csrhub.com/CSR_and_sustainability_information/Unilever-NV

Unilever is not listed in the investment universe of (Dutch super sustainable ) ASN Bank en Triodos Bank.

Awards: Unilever participates in a number of specialist external corporate ratings and rankings.https://www.unilever.com/sustainable-living/the-sustainable-living-plan/our-strategy/awards-and-recognition/


http://www.csrhub.com/CSR_and_sustainability_information/Unilever-NV

https://www.unilever.com/sustainable-living/the-sustainable-living-plan/our-strategy/awards-and-recognition/

Who benefits?


Product level: Food, personal care, hygiëne and soaps:http://www.unilever.com/brands-in-action/index.aspx More elaborate at: https://en.wikipedia.org/wiki/List_of_Unilever_brands

In the Future: it aims at Eco-efficiency in manufacturing including resources used and waste created. Reducing GHG across our entire value chain, water associated with consumer use, and in agriculture and manufacturing, our packaging without compromising on protection or safety.

At Global level: making our supply chain sustainable and driving systemic change within the agricultural system.

http://www.unilever.com/brands-in-action/index.aspx

https://en.wikipedia.org/wiki/List_of_Unilever_brands

Who benefits?


Impact level: 3, 4 and 5.

Impact levels: Unilever invests in ESG Opportunities (level 3, https://www.unilever.com/about/innovation/latest-news/), works on worldwide threats (level 4, with it's programme for Eco-efficiency) and basis needs food, hygiëne and personal care (level 5).

https://www.unilever.com/about/innovation/latest-news/

Example: iShares EUR 600 Health

Profile: The iShares EUR 600 Health aims to duplicate the performance of the STOXX® Europe 600 Health Care Index.

Stock data: DE000A0Q4R36, risk 5 (as a sectoral ETF and because it has a limited number of holdings). Eurozone 25% and Switzerland, Denmark and the VK (75%).

Sustainability: The etf has no specific impact or social aims, but these European holdings rank high in the Access to Medicine Index which benchmarks their efforts to make health care accessible and affordable for poor countries.


Example: iShares EUR 600 Health

Transparency: Holdings and distribution on: ishares-stoxx-europe-600-health-care-ucits-etf-de-fund. As the holdings are quite large, their transparency is quite high.

Sustainability indices & listings: Some of the corporations are listed in European and Global sustainable indices. Company profiles on CSR Hub & fund and index listings on www.Sustainable-investment.org

Benchmarks: Impact wise the bi-annual most interesting is the http://www.accesstomedicineindex.org/ranking


http://www.ishares.com/nl/particuliere-belegger/nl/producten/251946/ishares-stoxx-europe-600-health-care-ucits-etf-de-fund

http://www.Sustainable-investment.org/

http://www.accesstomedicineindex.org/ranking

Who benefits?

Product/service level: Healthcare: pharmaceuticals medication and therapies. The etf has no impact goals and depends on the corporations ambitions and collaboration.

In the Future: De Health sector realizes that on the long run more healthcare for more people is more sound thatn more expensive health care for fewer people. Their efforts to promote accessible and affordable health care show this. Vaccination (preventive medicine) is a field followed closely by the Access to Medecine Index (A2MI)

World level: Follow the A2MI, WHO initiatives and DNDI: http://www.dndi.org/partnership/partners.html#Pharmaceuticals


Who benefits?

Impact level: 5

Impact: The corporations in the ETP work on a basic need: health(care) and the index holdings do well on improving accessibility & affordability of healthcare in poor countries.


BNP EasyETF Low Carbon 100

Profile: BNP EasyETF Low Carbon 100 Europe offers investors immediate exposure to 100 European leaders in terms of carbon emissions. The tracker aims to replicate, as closely as possible, the performance of the Low Carbon 100 Europe® index (before fees and taxation). Actually 111 companies. Factsheet: Easyetf-low-carbon-100-europe. Sectors: Financials 19% Health 12% (Roche, Sanofi, Bayer), also Oil&Gas 11% and Tobacco. Eurozone, UK: 33%, Switzerland 11%.

Sustainability: The index is a product of Goodplanet.org/en based on Carbon Emission Disclosures.

Easyetf/fundsheet. Risk: 6/7 Costs: 0,6% Frequency: 0. Morningstar: Snapshot ISIN FR0010655597


http://www.allcountry.easyetf.com/central/our-products/focus/20100414_easyetf-low-carbon-100-europe.page?l=eng&p=EE_GL-NSG

http://www.goodplanet.org/en/

http://www.allcountry.easyetf.com/central/fundsheet/index.page?shareId=3565&l=eng&compartmentId=1342&umbrellaId=210&currency=EUR&p=EE_GL-NSG#tab=3

http://www.morningstar.co.uk/uk/etf/snapshot/snapshot.aspx?id=0P0000J19U

BNP EasyETF Low Carbon 100

Transparency: The investment product is an ETF based on an index assembled by Goodplanet.org/en based on Carbon Emission Disclosure Reporting. This has evolved as an environment standard, which is relevant for some corporations core activities, but not for all from 'Materiality of Corporate Sustainability' data point of view. However as the holdings are very large corporations their lower Carbon Emissions contribute significantly.

The ETF is a Sustainability index & benchmark. Note that iShares (Blackrock) issued the MSCI ACWI Low Carbon Target Index in dec 2014. The ETP exhibits a 78% reduction in current carbon emissions, and a 97% reduction in future carbon emissions compared to a portfolio of broadly diversified global stocks. Profile: 50% USA, > 40% Financials & IT corps. Also General Electric, an energy corporation and a major source of Carbon Emissions, but also very ambitious. https://www.ishares.com/us/products/271054/ishares-msci-acwi-low-carbon-target-etf


http://www.goodplanet.org/en/

https://www.ishares.com/us/products/271054/ishares-msci-acwi-low-carbon-target-etf

Who benefits?

Product level: The companies included in the Low Carbon 100 Europe® index emit on average 38% less CO2 than the 300 largest European company by market capitalisation before the last update of the composition in March 2010. Now, with 21 new firms included in the Low Carbon 100 Europe index, the companies making up the index emit 43% less CO2 than their benchmark universe on average. (April 2010). 42% less Carbon according to the website in 2015.

In the Future: Leaders inspire followers and pull laggards, but there is no direct impact scaling target.

Global level: Less carbon emissions help the slow down of climate transition and extreme weather (effects).


Who benefits?

Impact scaling: Selecting the 100 (111) carbon emission reduction leaders inspires them to stay 'leaders', their 'followers' to increase carbon emission reduction activities and the 'laggards' to undertake carbon emission reduction.

Impact levels: 2, 4 and 5.

BNP EasyETF Low Carbon Europe 100 corporations work on E(SG) risks (level 2) causing worldwide climate transition, a global threat (level 4).

The 12% Health corporations work for fulfilling a basic need (level 5) listed in the http://www.accesstomedicineindex.org/ as top corporations making health accessible & affordable.


http://www.accesstomedicineindex.org/

Read more on:

Op SlideShare Presentation: http://www.slideshare.net/alcanne/impact-indicator-20-return-and-impact-english-43814173

SlideShare (pdf): http://impactinvestingnews.blogspot.nl/2015/02/the-case-for-impact-indicator-for.html

Op Impact Investing Nieuws (blog): http://impactinvestingnews.blogspot.nl/2015/02/the-case-for-impact-indicator-for.html

Or LinkedIn Pulse: https://www.linkedin.com/pulse/case-impact-indicator-investment-products-alcanne-houtzaager?trk=mp-author-card


http://www.slideshare.net/alcanne/impact-indicator-20-return-and-impact-english-43814173

http://impactinvestingnews.blogspot.nl/2015/02/the-case-for-impact-indicator-for.html

http://impactinvestingnews.blogspot.nl/2015/02/the-case-for-impact-indicator-for.html

https://www.linkedin.com/pulse/case-impact-indicator-investment-products-alcanne-houtzaager?trk=mp-author-card

Contact:

https://www.linkedin.com/in/alcannehoutzaager

Twitter @Alcanne

Www.impactinvestingnews.blogspot.com

[email protected]

Facebook: Impact-Investing-Nieuws


https://www.linkedin.com/in/alcannehoutzaager

http://Www.impactinvestingnews.blogspot.com/

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investing with the impact indicator eng

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