mirjam staub-bisang
DESCRIPTION
TBLI CONFERENCE™ EUROPE 2011- London - United Kingdom TBLI CONFERENCE™ is the prime annual global networking and learning event on Environment, Social, Governance (ESG) and Impact Investing.TRANSCRIPT
Integrating Sustainable Investments Across Asset
Classes
TBLI Conference, London
11 November 2011
Dr. Mirjam Staub-Bisang
2
„Sustainable Investments for Institutional Investors“
(English version to be published by Wiley in 2012)
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Sustainable investments for institutional investors?
• Sustainable investing means:
taking ESG matters into account when making investment decisions
►Risk reduction►Investment opportunities►Generate sustainable investment returns►Social impact
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Sustainable governments…
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…are better debtors
Quelle: Bank Sarasin
WGBI Australia WGBI Greece WGBI all countries
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Sustainable companies…
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…manage ESG risks betterBP vs peers
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… and profit from market opportunities
Geberit vs peers
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„Green“ real estate…
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…adds financial value
-90%
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Real assets…
• Infrastructure assets• Agricultural land• Timberland
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…generate steady returnsNCREIF Timberland vs World Timber Index vs MSCI World
(2003-2010)
Performance in USD(31.12.2003-31.12.2010)
30
50
70
90
110
130
150
170
190
210
Dez.0
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Apr.0
4
Aug.0
4
Dez.0
4
Apr.0
5
Aug.0
5
Dez.0
5
Apr.0
6
Aug.0
6
Dez.0
6
Apr.0
7
Aug.0
7
Dez.0
7
Apr.0
8
Aug.0
8
Dez.0
8
Apr.0
9
Aug.0
9
Dez.0
9
Apr.1
0
Aug.1
0
Dez.1
0
MSCI WORLD NCREI F Timberland I ndex World Timber I ndex
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Microfinance investments…
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…diversify portfolios and create a social return
SMX Microfinance Index vs US Libor 3M
90
95
100
105
110
115
120
125
130
135
140
12/ 0
3
6/04
12/ 0
4
6/05
12/ 0
5
6/06
12/ 0
6
6/07
12/ 0
7
6/08
12/ 0
8
6/09
12/ 0
9
6/10
12/ 1
0
6/11
SMX SYMBIOTICS MF INDEX (USD) US LIBOR 3M TR (USD)
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Cleantech Private Equity…GPs in the cleantech space
Source: Macquarie
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…is a growing asset class
Invested capital in cleantech (worldwide, in USD bn)
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Sustainable investment strategies…
• Core strategies– Negative screening– Best-in-Class– Thematic investments
• Broad strategies– ESG integration– Engagement
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…applied across asset classes
Fixed income
Equities Real estate
Real assets
Private equity
Negative screening
Best-in-class
Thematic investments
ESG integration
Engagement
Core Investments
Satellite Investments
•Conventional Investments
•Sustainable Investments
-Renewable Energies
-Water
-Forest
-Microfinance
Core Investments
•Conventional Investments
•Sustainable Investments
-ESG Integration
-Best-in-Class
-Green Bonds
Core Satellite Approach
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Institutional investors have a long-term view…
• Pension funds• Insurance companies• Charitable foundations• Family offices
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…and invest sustainably
• PPGM (NL)• Ontario Teachers‘ Pension Fund (CDN)• PREVI (BR)• Nest Sammelstiftung (CH)• VIC Super (AUS)• Allianz (GER)• Munich Re (GER)• Generali (I)• Aalto University Foundation (FI)• Mistra Foundation (SE)• Lord Fink Family Office (UK)• River Star Foundation (HKG)
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PPGM, Netherlands
• EUR 105bn (12/2010)
• ESG integration• Targeted thematic investments in
sustainable forestry, climate projects, infrastructure and microfinance
• Sustainable Real Estate• Engagement
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Nest Sammelstiftung
• CHF 1bn (12/2010)
• Negative Screening• Best-in-class approach for equities
and bonds• Sustainable real estate• Active shareholder/engagement
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Munich Re
• EUR 196 bn (12/2010)
• ESG-integration for 80% of all equities and bonds are invested based on ESG criteria
• Thematic investments:– Renewable energies: wind and solar parks,
geothermic and biogas infrastructure– Timberland investments
• „Green“ real estate
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EVZ Foundation
• German Foundation with assets of approx. EUR 420mn
• Negative screening for all equities and bonds in line with mission of the foundation – International Labour Organisation (ILO):
no violation of human rights, no forced labour, no child labour
• Investments in microfinance
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River Star Group
• Hong Kong-based family office• Responsible investing strategies
across entire portfolio• Impact investments
– Focus on tangible environmental and social outcomes
– Microfinance– Renewable energies
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Sustainability adds value…
… to investors… to society
The time is now…
…to take on responsibility for the sake of beneficiaries
and society
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„Sustainable Investments for Institutional Investors“ (Wiley 2012)
Questions?