2013 industry sector sustainability …...long-term investment strategies. motivated, highly...
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2013 INDUSTRY SECTOR SUSTAINABILITY LEADERS
Contents
Listed below are reports on each of the 24 industry groups covered by the Dow Jones Sustainability Index. In each case, the company identified by RobecoSAM as the sustainability leader of each sector is profiled, together with the key sustainability drivers.
SECTOR 2013 SUSTAINABILITY LEADER PAGE
Automobiles & components Volkswagen AG 2Banks Australia & New Zealand Banking Group Ltd 4Capital goods Siemens AG 6Commercial & professional services Adecco SA 8Consumer durables & apparel Panasonic Corp 10Consumer services Tabcorp Holdings Ltd 12Diversified financials Citigroup Inc 14Energy BG Group PLC 16Food & staples retailing Woolworths Ltd 18Food, beverage & tobacco Nestle SA 20Health care equipment & services Abbott Laboratories 22Household & personal products Henkel AG & Co KGaA 24Insurance Allianz SE 26Materials Akzo Nobel NV 28Media Telenet Group Holding NV 30Pharmaceuticals, biotechnology & life sciences Roche Holding AG 32Real estate Stockland 34Retailing Lotte Shopping Co Ltd 36Semiconductors & semiconductor equipment Taiwan Semiconductor Manufacturing Co Ltd 38Software & services SAP AG 40Technology hardware & equipment Alcatel-Lucent 42Telecommunication services KT Corp 44Transportation Air France-KLM 46Utilities EDP - Energias de Portugal SA 48
2
Volkswagen AG
AUT Automobiles
INDUSTRY GROUP LEADER REPORT | 2013
Volkswagen AG Best company within industryDJSI industry average
Company Description
Based in Wolfsburg, Germany, The Volkswagen Group is one of the largest automobile manufacturers in Europe. Founded in 1945, it now owns a totalof twelve automotive brands: Volkswagen, Audi, SEAT, Skoda, Bentley, Bugatti, Lamborghini, Porsche, Ducati, Volkswagen Commercial Vehicles,Scania, and MAN. Volkswagen is also active in other fields of business, such as manufacturing large-bore diesel engines for marine and stationaryapplications, turbochargers, compressors and chemical reactors, and produces vehicle transmissions and special gear units for wind turbines. Inaddition, Volkswagen offers a wide range of financial services, including dealer and customer financing, leasing, banking and insurance activities. Thegroup employs over 549,000 employees worldwide. Despite harsh market conditions that hit the automotive industry in 2012, Volkswagen stillmanaged to increase sales by 21%. The group operates more than 100 production facilities across the globe.
This year, Volkswagen AG emerged as the Industry Group Leader for Automobiles and Components. Sustainability is the foundation of the group’scorporate policy, and is particularly built around integrating the company’s anticipated risks and opportunities arising from Volkswagen’s exposure toemerging markets. As an automobile producer, Volkswagen is aware of its considerable responsibility towards mitigating climate change. The groupthus works to incorporate sustainability along the entire value chain, addressing global challenges in resource conservation, climate protection andintra- and inter-generation equity. Research and innovation plays a strong role in achieving its sustainability goals and is implemented largely byVolkswagen’s 40,000 engineers. Strong efforts have been dedicated to improving fleet efficiency, with Volkswagen setting goals to cut average CO2emissions to 120 g/km by 2015 and 95 g/km by 2020. This goal constitutes part of Volkswagen’s overall sustainability targets framework, called“Strategy 2018,” in which the company sets innovations and efficiency targets for the year 2018. Internal operational targets are also considered:Volkswagen plans to format its production plants to be 25% more environmentally compatible by this date.
Sustainability Scores
Sustainability Performance
Total Scores
Economic Dimension Environmental Dimension Social Dimension
GermanyCountry
Company
556,715No of Employees
www.volkswagenag.comWeb
77,464Market cap (million)
Share
EURCurrency
181.55High 52 week
122.25Low 52 week
200,725Sales (million)
Key data
21.38EPS
7.72P/E Ratio
2012 2013E
192,676
20.13
8.19
COMPANY INFORMATION Source: Bloomberg / September 04, 2013
1 /
RobecoSAM AG - Josefstrasse 218 - 8005 Zürich - Switzerland - www.robecosam.com - Phone +41 44 653 10 30 - Fax +41 44 653 10 50 - [email protected]
1
Member of DJSI World, DJSI Europe
2
3
Company Performance for Selected Criteria
Economic Dimension
Supply Chain Management Brand Management
Corporate Governance Codes of Conduct/Compliance/Corruption&Bribery
Environmental Dimension
Climate Strategy Environmental Policy/Management System
Product Stewardship Operational Eco-Efficiency
Social Dimension
Social Reporting Occupational Health and Safety
Human Capital Development Talent Attraction & Retention
For information on assessment criteria, visit www.sustainability-indices.com
DJSI industry averageVolkswagen AG Best company within industry
The automobile industry faces a number of key challenges including the need to define and implement a clear market positioning strategy in anenvironment characterized by overcapacities, cut-throat competition, and cost pressure stemming from high R&D costs. In particular. Givenincreasingly tight regulations on greenhouse gas emissions and air pollutants, as well as the industry’s dependence on oil, carmakers need to improvefuel efficiency and lower the carbon intensity of their product portfolios by introducing alternative propulsion systems such as electric motors. In thisrespect, talented, skilled and motivated employees are directly responsible for developing innovative products, improving efficiency and ensuringproduction quality. Thus, progressive human resources policies that include talent attraction and retention, human capital development, occupationalhealth & safety and group-wide ethical principles are indispensable to a company’s success.
Industry Drivers
22 / Industry Group Leader Report - 2013
Disclaimer: For internal use only/Confidentiality: The information and opinions contained in this publication are for internal use only. This information is destined exclusively for internal use of the recipient. Any recipient shalltreat this document as confidential and shall under no circumstances disclose or transmit any part of this document, including but not limited to the Index Data, the Components of the Index and the related descriptions,weightings, etc. to any third party. Furthermore the publication of the information as a whole is strictly prohibited even after the final publication of the DJSI Index 2013. No Offer: The information and opinions contained in thispublication neither constitute an offer nor an invitation to make an offer to buy or sell any securities or any options, futures or other derivatives related to such securities. The information described in this publication is notdirected to persons in any jurisdiction where the provision of such information would run counter to local laws and regulation. No warranty: This information is derived from sources believed to be accurate and reliable, butneither its accuracy nor completeness is guaranteed. The material and information in this information is provided "as is" and without warranties of any kind, either expressed or implied. RobecoSAM and their related andaffiliated 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 thecurrent 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 thispublication. Limitation of liability: All information contained in this publication is distributed with the understanding that the authors, publishers and distributors are not rendering any legal, accounting or other professionaladvice or opinions on specific facts or matters and accordingly assume no liability whatsoever in connection with its use. In no event shall RobecoSAM 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 thispublication are the exclusive property of RobecoSAM and/or its related, affiliated and subsidiary companies.
4
Australia & New Zealand BankingGroup LtdBNK Banks
INDUSTRY GROUP LEADER REPORT | 2013
Australia & New Zealand Banking Group Ltd Best company within industryDJSI industry average
Company Description
Founded in 1835, Australia and New Zealand Banking Group (ANZ) is the third-largest banking organization in Australia and the largest in NewZealand. ANZ offers a wide array of banking and financial products and services. The group is organized into four operating divisions. ANZ's Australiaand New Zealand divisions cater to retail, commercial and wealth management clients, and the International and Institutional Banking division offersproducts and services to global institutional clients. Further, the group has a significant presence in private banking, with its Global Wealth divisionfocusing primarily on investments, superannuation, insurance, and advice solutions. For small and medium-size businesses, ANZ has designedcustomized products and services covering banking and savings accounts, merchant services, commercial insurance, and financial planning.Headquartered in Melbourne, Australia, ANZ operates primarily in Australia, New Zealand, and the Asia-Pacific Region, with additional presence in theMiddle East, Europe, and America. The company reported statutory profits of AUD 5.7 billion at the end of the 2012 fiscal year, up 6% from 2011.
ANZ structures its sustainable business strategy around five priority areas that guide its sustainability initiatives. Priorities such as developingresponsible internal practices and minimizing environmental impact look inwards by seeking to optimize operational management, while otherpriorities focus on outward impact - such as developing educational and employment activities to further socioeconomic inclusion and financialcapability, and bridging socioeconomic divides between rural and urban areas in key markets. The company pursues a comprehensive approach totalent attraction and retention, developing programs for training and recruitment of traditionally marginalized groups. ANZ also leverages its presencein developing nations – it holds a 40% share of the banking market in the Pacific alone - to support the growth of rural industry, and delivers financialliteracy programs throughout Australia/New Zealand and Asia-Pacific. MoneyMinded, a program focused on building people's money managementskills, has seen around 200,000 individuals participating since it began ten years ago.
Sustainability Scores
Sustainability Performance
Total Scores
Economic Dimension Environmental Dimension Social Dimension
AustraliaCountry
Company
47,419No of Employees
www.anz.comWeb
81,677Market cap (million)
Share
AUDCurrency
32.09High 52 week
23.42Low 52 week
19,699Sales (million)
Key data
2.31EPS
12.90P/E Ratio
2012 2013E
35,968
2.17
13.75
COMPANY INFORMATION Source: Bloomberg / September 04, 2013
1 /
RobecoSAM AG - Josefstrasse 218 - 8005 Zürich - Switzerland - www.robecosam.com - Phone +41 44 653 10 30 - Fax +41 44 653 10 50 - [email protected]
1
Member of DJSI World, DJSI Asia Pacific, DJSI Australia
2
5
Company Performance for Selected Criteria
Economic Dimension
Corporate Governance Risk & Crisis Management
Customer Relationship Management Codes of Conduct/Compliance/Corruption&Bribery
Environmental Dimension
Business Risks and Opportunities Environmental Policy/Management System
Environmental Reporting
Social Dimension
Financial Inclusion Labor Practice Indicators and Human Rights
Talent Attraction & Retention Controversial Issues, Dilemmas in Lending / Financing
For information on assessment criteria, visit www.sustainability-indices.com
DJSI industry averageAustralia & New Zealand Banking Group Ltd Best company within industry
The banking industry remains under public scrutiny. As banks work to restore their credibility and contribute to stable financial systems following thecredit crisis, leadership and accountability are key factors in building a competitive advantage. Adherence to international best practices in corporategovernance, risk management and compliance standards remains a necessity. Regulation, political and stakeholder pressure, demographic shifts andclimate change will continue to have an impact on the business environment. Leading banks are integrating environmental and social factors into theirlong-term investment strategies. Motivated, highly educated and experienced employees are critical to developing innovative financial products andservices as well as in attracting and retaining clients. At the same time, climate change and resource scarcity are creating new business opportunities,for example in the area of low-carbon mortgages or funding schemes for new technologies that are paving the way toward a low-carbon economy.
Industry Drivers
22 / Industry Group Leader Report - 2013
Disclaimer: For internal use only/Confidentiality: The information and opinions contained in this publication are for internal use only. This information is destined exclusively for internal use of the recipient. Any recipient shalltreat this document as confidential and shall under no circumstances disclose or transmit any part of this document, including but not limited to the Index Data, the Components of the Index and the related descriptions,weightings, etc. to any third party. Furthermore the publication of the information as a whole is strictly prohibited even after the final publication of the DJSI Index 2013. No Offer: The information and opinions contained in thispublication neither constitute an offer nor an invitation to make an offer to buy or sell any securities or any options, futures or other derivatives related to such securities. The information described in this publication is notdirected to persons in any jurisdiction where the provision of such information would run counter to local laws and regulation. No warranty: This information is derived from sources believed to be accurate and reliable, butneither its accuracy nor completeness is guaranteed. The material and information in this information is provided "as is" and without warranties of any kind, either expressed or implied. RobecoSAM and their related andaffiliated 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 thecurrent 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 thispublication. Limitation of liability: All information contained in this publication is distributed with the understanding that the authors, publishers and distributors are not rendering any legal, accounting or other professionaladvice or opinions on specific facts or matters and accordingly assume no liability whatsoever in connection with its use. In no event shall RobecoSAM 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 thispublication are the exclusive property of RobecoSAM and/or its related, affiliated and subsidiary companies.
6
Siemens AG
IDD Industrial Conglomerates
INDUSTRY GROUP LEADER REPORT | 2013
Siemens AG Best company within industryDJSI industry average
Company Description
Siemens AG was founded in 1847 in Berlin. Its founder, Werner von Siemens began the business with the manufacture of pointer telegraphs. Today,
the company has grown to become one of the world’s largest electronics and electrical engineering companies; with 370,000 employees around the
world, Siemens is active in 190 countries. The group is involved in four main business areas. The Energy sector is a leading supplier of products,
solutions and services in the field of energy. The Healthcare sector offers products and consulting services to the healthcare industry. The Industry
sector supplies innovative products and services to industrial customers. The Infrastructure & Cities sector provides sustainable technologies for urban
centers worldwide. Two additional cross-segment central divisions activities offer financial services and real estate for the rest of the Siemens group.
Siemens AG relies heavily on the output of its R&D operation, and invested EUR 4.2 billion into research and development during the 2012 fiscal year.
Siemens AG’s revenues amounted to EUR 78.3 billion in 2012.
Siemens AG has once again earned the position of Industry Group Leader due to its commitment to sustainability as a guiding business principle and
through sustainable value creation. The company has developed an Environmental Portfolio that promotes environmentally-friendly technologies and
products. During 2012, the Environmental Portfolio generated revenues of EUR 33.2 billion, representing 42% of the group’s total revenues. The
performance of the Environmental Portfolio is up 10% year-on-year on a comparable basis and has led to a reduction of 332 million tons of CO2
emissions among Siemens customers in 2012. In 2010, the group set a target aiming to reach EUR 40 billion in revenue from its Environmental
Portfolio by the end of the 2014 fiscal year; at the current rate, it is on track to reaching this ambitious goal. Siemens' sustainability strategy extends
well beyond environmental products, as it has implemented best in class practices in areas ranging from customer relationship management to supply
chain management.
Sustainability Scores
Sustainability Performance
Total Scores
Economic Dimension Environmental Dimension Social Dimension
GermanyCountry
Company
368,000No of Employees
www.siemens.comWeb
71,766Market cap (million)
Share
EURCurrency
85.52High 52 week
71.98Low 52 week
76,592Sales (million)
Key data
5.36EPS
15.20P/E Ratio
2012 2013E
78,296
5.77
14.12
COMPANY INFORMATION Source: Bloomberg / September 04, 2013
1 /
RobecoSAM AG - Josefstrasse 218 - 8005 Zürich - Switzerland - www.robecosam.com - Phone +41 44 653 10 30 - Fax +41 44 653 10 50 - [email protected]
1
Member of DJSI World, DJSI Europe
6
7
Company Performance for Selected Criteria
Economic Dimension
Corporate Governance Innovation Management
Strategy for Emerging Markets Supply Chain Management
Environmental Dimension
Water Related Risks Climate Strategy
Environmental Reporting Operational Eco-Efficiency
Social Dimension
Talent Attraction & Retention Labor Practice Indicators and Human Rights
Occupational Health and Safety Human Capital Development
For information on assessment criteria, visit www.sustainability-indices.com
DJSI industry averageSiemens AG Best company within industry
Industrial conglomerates are highly decentralized businesses that rely on attracting talented managers to run business operations and deliver theexpected performance. Adopting best practices in manufacturing processes is also an important aspect of industrial conglomerates’ businessstrategies. Although sound operational management that considers environmental factors is a key concern for industrial conglomerates, the industry’smain challenges and opportunities are product-related. Important issues include resource efficiency, safety, hazardous content and disposal andrecycling options for products that have reached the end of their lifespan. Innovation and the integration of environmental considerations into productdevelopment are key criteria, as outlined by the Eco-Design Framework. In equipment markets, addressing customers' carbon constraints is animportant factor in product development. Industrial conglomerates typically have a global presence that includes emerging markets. To manage thediverse cultural background of their workforce, companies must focus on promoting common corporate values, including policies and compliancesystems to prevent corruption and illegal market practices. Health & safety standards must be met at all operational levels. Supply chains extending toemerging markets expose companies to potential to human rights abuses.
Industry Drivers
22 / Industry Group Leader Report - 2013
Disclaimer: For internal use only/Confidentiality: The information and opinions contained in this publication are for internal use only. This information is destined exclusively for internal use of the recipient. Any recipient shalltreat this document as confidential and shall under no circumstances disclose or transmit any part of this document, including but not limited to the Index Data, the Components of the Index and the related descriptions,weightings, etc. to any third party. Furthermore the publication of the information as a whole is strictly prohibited even after the final publication of the DJSI Index 2013. No Offer: The information and opinions contained in thispublication neither constitute an offer nor an invitation to make an offer to buy or sell any securities or any options, futures or other derivatives related to such securities. The information described in this publication is notdirected to persons in any jurisdiction where the provision of such information would run counter to local laws and regulation. No warranty: This information is derived from sources believed to be accurate and reliable, butneither its accuracy nor completeness is guaranteed. The material and information in this information is provided "as is" and without warranties of any kind, either expressed or implied. RobecoSAM and their related andaffiliated 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 thecurrent 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 thispublication. Limitation of liability: All information contained in this publication is distributed with the understanding that the authors, publishers and distributors are not rendering any legal, accounting or other professionaladvice or opinions on specific facts or matters and accordingly assume no liability whatsoever in connection with its use. In no event shall RobecoSAM 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 thispublication are the exclusive property of RobecoSAM and/or its related, affiliated and subsidiary companies.
8
Adecco SA
PRO Professional Services
INDUSTRY GROUP LEADER REPORT | 2013
Adecco SA Best company within industryDJSI industry average
Company Description
Adecco resulted from the 1981 merger of Adia, founded in 1957, and Ecco founded in 1964, both providers of temporary personnel. Based in Zurich,Switzerland, Adecco SA is the global leader for providing HR solutions, with over 31,000 full-time equivalent employees, spread across 5,200 branchesand in over 60 countries. The service offerings range from temporary staffing solutions, permanent placement, career transition and talentdevelopment, to outsourcing and consulting. For Adecco, a temporary placement represents the opportunity to earn an income, gain experience andcan be a stepping-stone to a permanent job. Revenues for 2012 amounted to EUR 20.5 billion – a 4% decline of organic revenues compared to theprevious year. Due to the current economic situation in Europe, Adecco’s operations were confronted with rising unemployment and difficulties innavigating the market. Despite the decline of organic growth, the group was able to maintain solid profitability.
Corporate social responsibility is an integral part of Adecco’s business, and continues to be the focus of the Board of Directors and Adecco’s ExecutiveCommittee. As an HR provider, Adecco’s sustainability strategy focuses on unlocking potential talent, integration into the workplace and skilldevelopment. The company has started “REDvolución,” a project to support integration in the workplace in Spain. It targets people that are excludedfrom the workforce and helps them with their re-integration and has supported 70,000 jobseekers to date. Adecco also has the “Disability Talent Pool”program in place, which provides disabled people with interview and job opportunities. The program also strives for better cross-institutionalintegration, and cooperates with the ILO International Business and Disability Network towards this aim. Adecco is involved in a project with Britishstudents and aims to develop their skills through its “Unlocking Britain’s Potential” campaign. By working closely with schools and educationalfacilities, Adecco makes several strides in bridging the gap between education and work.
Sustainability Scores
Sustainability Performance
Total Scores
Economic Dimension Environmental Dimension Social Dimension
SwitzerlandCountry
Company
31,000No of Employees
www.adecco.comWeb
11,403Market cap (million)
Share
CHFCurrency
64.65High 52 week
41.66Low 52 week
19,693Sales (million)
Key data
2.86EPS
21.06P/E Ratio
2012 2013E
20,536
2.35
25.63
COMPANY INFORMATION Source: Bloomberg / September 04, 2013
1 /
RobecoSAM AG - Josefstrasse 218 - 8005 Zürich - Switzerland - www.robecosam.com - Phone +41 44 653 10 30 - Fax +41 44 653 10 50 - [email protected]
1
Member of DJSI World, DJSI Europe
9
Company Performance for Selected Criteria
Economic Dimension
Customer Relationship Management Risk & Crisis Management
Supply Chain Management Codes of Conduct/Compliance/Corruption&Bribery
Environmental Dimension
Environmental Policy/Management System Environmental Reporting
Operational Eco-Efficiency
Social Dimension
Talent Attraction & Retention Labor Practice Indicators and Human Rights
Occupational Health and Safety Human Capital Development
For information on assessment criteria, visit www.sustainability-indices.com
DJSI industry averageAdecco SA Best company within industry
Professional services companies provide other companies with a range of business support services in the areas of staffing, as well as the testing,inspection and certification of manufacturing or other business processes. As provider of specialized services, these are knowledge-intensive companieswhose success depends on the on the quality of their workforce. Therefore, talent attraction & retention are particularly important to professionalservices companies. A reputation for integrity is also critical to retaining customers and winning new business: Therefore, companies must ensure thatemployees comply with their Codes of Conduct and that their services are delivered according to high ethical standards. In an environmentcharacterized by increased labor flexibility and a greater focus on product quality, both staffing and testing companies are poised to see the growth oftheir industry accelerate.
Industry Drivers
22 / Industry Group Leader Report - 2013
Disclaimer: For internal use only/Confidentiality: The information and opinions contained in this publication are for internal use only. This information is destined exclusively for internal use of the recipient. Any recipient shalltreat this document as confidential and shall under no circumstances disclose or transmit any part of this document, including but not limited to the Index Data, the Components of the Index and the related descriptions,weightings, etc. to any third party. Furthermore the publication of the information as a whole is strictly prohibited even after the final publication of the DJSI Index 2013. No Offer: The information and opinions contained in thispublication neither constitute an offer nor an invitation to make an offer to buy or sell any securities or any options, futures or other derivatives related to such securities. The information described in this publication is notdirected to persons in any jurisdiction where the provision of such information would run counter to local laws and regulation. No warranty: This information is derived from sources believed to be accurate and reliable, butneither its accuracy nor completeness is guaranteed. The material and information in this information is provided "as is" and without warranties of any kind, either expressed or implied. RobecoSAM and their related andaffiliated 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 thecurrent 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 thispublication. Limitation of liability: All information contained in this publication is distributed with the understanding that the authors, publishers and distributors are not rendering any legal, accounting or other professionaladvice or opinions on specific facts or matters and accordingly assume no liability whatsoever in connection with its use. In no event shall RobecoSAM 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 thispublication are the exclusive property of RobecoSAM and/or its related, affiliated and subsidiary companies.
10
Panasonic Corp
LEG Leisure Equipment & Products and Consumer Electronics
INDUSTRY GROUP LEADER REPORT | 2013
Panasonic Corp Best company within industryDJSI industry average
Company Description
Founded in 1918 by Konosuke Matsushita under the name of Matsushita Electric Housewares Manufacturing Works, Panasonic Corporation is todaycomposed of companies operating in various business domains. From audio& visual products to home appliances, to industrial solutions and otherconsumer electronic products, Panasonic caters to the needs of the consumer lifestyle segment. In January 2012, Panasonic undertook a largerestructuring project throughout the group, including its subsidiaries Panasonic Electric Works Co, Ltd. and SANKYO Electric Co., Ltd. The new companystructure allows for better focus on the customer and strives to increase efficiencies through synergies to improve products, systems and services.Important investments were made during the restructuring and many challenges related to low demand and harsh market conditions remain.Nevertheless, as a result of the restructuring, Panasonic now looks better-positioned for future growth.
With the goal of becoming the leader in green innovation in the electronics industry by 2018, Panasonic continues to display exceptional sustainabilityperformance throughout its business operations. The company’s sustainability strategy centers around two main components, which it terms “GreenLife Innovation” and “Green Business Innovation”. These two building blocks of its strategy aim to promote a greener lifestyle and to achieve thelowest possible environmental impact through mitigation and innovation. In FY 2011, Panasonic launched the Green Transformation 2012 program, athree-year sustainability management strategy. Panasonic’s position as the RobecoSAM Industry Group Leader confirms that its management plan isalready proving to be successful. In parallel, Panasonic also developed an environmental action plan for employees named the “Green Plan 2018,”which provides them with guidelines for day-to-day business activities. These strategies have established a clear path of action for the company,consolidating Panasonic’s sustainability framework and paving the road for future sustainable growth.
Sustainability Scores
Sustainability Performance
Total Scores
Economic Dimension Environmental Dimension Social Dimension
JapanCountry
Company
292,163No of Employees
www.panasonic.netWeb
2,251,903Market cap (million)
Share
JPYCurrency
993.00High 52 week
376.00Low 52 week
7,297,414Sales (million)
Key data
28.99EPS
31.66P/E Ratio
2012 2013E
7,846,216
-326.28
-
COMPANY INFORMATION Source: Bloomberg / September 04, 2013
1 /
RobecoSAM AG - Josefstrasse 218 - 8005 Zürich - Switzerland - www.robecosam.com - Phone +41 44 653 10 30 - Fax +41 44 653 10 50 - [email protected]
1
Member of DJSI World, DJSI Asia Pacific
11
Company Performance for Selected Criteria
Economic Dimension
Customer Relationship Management Brand Management
Corporate Governance Supply Chain Management
Environmental Dimension
Climate Strategy Product Stewardship
Environmental Reporting Hazardous Substances
Social Dimension
Human Capital Development Labor Practice Indicators and Human Rights
Talent Attraction & Retention Stakeholder Engagement
For information on assessment criteria, visit www.sustainability-indices.com
DJSI industry averagePanasonic Corp Best company within industry
Producers of leisure equipment and consumer electronics operate in a highly competitive and rapidly changing market. The industry’s key driversinclude product quality, differentiation, time-to-market, and brand management. Hence, companies must focus on innovation, particularly R&D, tomaintain competitiveness as new products become commoditized within increasingly shorter time frames. Leading companies are able to address thechallenges of developing new technologies and providing ever-changing and more integrated product ranges by entering into strategic alliances andoutsourcing operations. Supply chain management that integrates environmental and social considerations is increasingly important for minimizingeconomic, social and reputational risks. Faced with growing stakeholder scrutiny, companies must pay close attention to working conditions,particularly with regard to suppliers and subcontractors in developing countries. Environmental challenges arise throughout the product life span,requiring life cycle analysis, which includes product modularity, avoiding the use of toxic substances in manufacturing processes and products, energyefficient products and effective take-back programs for the disposal of obsolete products.
Industry Drivers
22 / Industry Group Leader Report - 2013
Disclaimer: For internal use only/Confidentiality: The information and opinions contained in this publication are for internal use only. This information is destined exclusively for internal use of the recipient. Any recipient shalltreat this document as confidential and shall under no circumstances disclose or transmit any part of this document, including but not limited to the Index Data, the Components of the Index and the related descriptions,weightings, etc. to any third party. Furthermore the publication of the information as a whole is strictly prohibited even after the final publication of the DJSI Index 2013. No Offer: The information and opinions contained in thispublication neither constitute an offer nor an invitation to make an offer to buy or sell any securities or any options, futures or other derivatives related to such securities. The information described in this publication is notdirected to persons in any jurisdiction where the provision of such information would run counter to local laws and regulation. No warranty: This information is derived from sources believed to be accurate and reliable, butneither its accuracy nor completeness is guaranteed. The material and information in this information is provided "as is" and without warranties of any kind, either expressed or implied. RobecoSAM and their related andaffiliated 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 thecurrent 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 thispublication. Limitation of liability: All information contained in this publication is distributed with the understanding that the authors, publishers and distributors are not rendering any legal, accounting or other professionaladvice or opinions on specific facts or matters and accordingly assume no liability whatsoever in connection with its use. In no event shall RobecoSAM 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 thispublication are the exclusive property of RobecoSAM and/or its related, affiliated and subsidiary companies.
12
Tabcorp Holdings Ltd
CNO Casinos & Gaming
INDUSTRY GROUP LEADER REPORT | 2013
Tabcorp Holdings Ltd Best company within industryDJSI industry average
Company Description
Tabcorp is Australia’s leading diversified entertainment company, doing business in the areas of wagering, gaming and media. Headquartered inMelbourne and employing over 3,000 people, the company is present in all Australian states and is amongst the largest 100 companies listed on theAustralian Stock Exchange (ASX). In 2012 the company increased its net profits after tax by 12.7% to AUD 340 million as a result of strong growth inits operations. In 2011, it spun-off its Casino arm, now called Echo Entertainment, in order to focus on key growth areas. Given the nature of itsoperations, the company is fully committed to the sustainable development of its business, ensuring that stakeholder needs are addressed and thatvalue is generated for the business and the communities in which it operates.
Tabcorp emerges as the global leader in the Consumer Services industry group. Its position as a sustainability leader in the casinos & gambling spacehas been confirmed by numerous global rankings and its continuous improvement has been reflected in the annual RobecoSAM CorporateSustainability Assessment. The company’s sound governance and risk management policies provide the foundation for long-term sustainable growth.In the environmental area, the company has greatly improved its operational eco-efficiency and reduced its environmental footprint through therestructuring of its business. On the social front, the company excels in managing its labor force and has a solid stakeholder engagement frameworkfor engaging its customers, policy makers and employees. Tabcorp is internationally recognized for its efforts in promoting responsible gambling andtaking a proactive stance in engaging with its customers and employees.
Sustainability Scores
Sustainability Performance
Total Scores
Economic Dimension Environmental Dimension Social Dimension
AustraliaCountry
Company
11,000No of Employees
www.tabcorp.com.auWeb
2,376Market cap (million)
Share
AUDCurrency
3.63High 52 week
2.61Low 52 week
2,037Sales (million)
Key data
.19EPS
17.06P/E Ratio
2012 2013E
1,960
.19
16.88
COMPANY INFORMATION Source: Bloomberg / September 04, 2013
1 /
RobecoSAM AG - Josefstrasse 218 - 8005 Zürich - Switzerland - www.robecosam.com - Phone +41 44 653 10 30 - Fax +41 44 653 10 50 - [email protected]
1
Member of DJSI World, DJSI Asia Pacific, DJSI Australia
13
Company Performance for Selected Criteria
Economic Dimension
Risk & Crisis Management Brand Management
Corporate Governance Anti-crime Policy/Measures
Environmental Dimension
Environmental Policy/Management System Environmental Reporting
Operational Eco-Efficiency
Social Dimension
Talent Attraction & Retention Stakeholder Engagement
Promoting Responsible Gaming Social Reporting
For information on assessment criteria, visit www.sustainability-indices.com
DJSI industry averageTabcorp Holdings Ltd Best company within industry
The casinos & gaming industry remains subject to intense public scrutiny. Companies must address serious issues such as money laundering,corruption and bribery through robust compliance systems and sound governance. Social issues such as gambling addiction and its social repercussionsmust also be tackled. Online gambling has further increased the need for effective monitoring and security. Companies in this space are increasinglytaking a proactive stance in dealing with these issues, going beyond the minimum legal requirements and setting examples for other companieswithin the travel and leisure space. On the environmental side, companies are increasing efforts to curb energy consumption while reducing operatingcosts.
Industry Drivers
22 / Industry Group Leader Report - 2013
Disclaimer: For internal use only/Confidentiality: The information and opinions contained in this publication are for internal use only. This information is destined exclusively for internal use of the recipient. Any recipient shalltreat this document as confidential and shall under no circumstances disclose or transmit any part of this document, including but not limited to the Index Data, the Components of the Index and the related descriptions,weightings, etc. to any third party. Furthermore the publication of the information as a whole is strictly prohibited even after the final publication of the DJSI Index 2013. No Offer: The information and opinions contained in thispublication neither constitute an offer nor an invitation to make an offer to buy or sell any securities or any options, futures or other derivatives related to such securities. The information described in this publication is notdirected to persons in any jurisdiction where the provision of such information would run counter to local laws and regulation. No warranty: This information is derived from sources believed to be accurate and reliable, butneither its accuracy nor completeness is guaranteed. The material and information in this information is provided "as is" and without warranties of any kind, either expressed or implied. RobecoSAM and their related andaffiliated 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 thecurrent 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 thispublication. Limitation of liability: All information contained in this publication is distributed with the understanding that the authors, publishers and distributors are not rendering any legal, accounting or other professionaladvice or opinions on specific facts or matters and accordingly assume no liability whatsoever in connection with its use. In no event shall RobecoSAM 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 thispublication are the exclusive property of RobecoSAM and/or its related, affiliated and subsidiary companies.
14
Citigroup Inc
FBN Diversified Financial Services and Capital Markets
INDUSTRY GROUP LEADER REPORT | 2013
Citigroup Inc Best company within industryDJSI industry average
Company Description
Citigroup Inc. is a global diversified financial services holding company providing a broad range of financial services and products to consumers,corporations, governments and institutions - including consumer banking and credit, investment and corporate banking, wealth management,transaction services and securities brokerage. The company is divided into two segments, comprising Citicorp and Citi Holdings. Citicorp consists of thecompany's Global Consumer Banking business, which is organized into Citigroup's four operating regions - North America, Europe, Middle East &Africa, Latin America, and Asia - as well as its Institutional Clients Group division, which houses the company's securities & banking and transactionservices business. Citi Holdings comprises the Brokerage & Asset Management division and the Local Consumer Lending business, overseeing certaininternational consumer lending activities as well. During the 2012 fiscal year, Citigroup Inc. generated USD 70.8 billion in net revenues.
Citigroup has structured its corporate sustainability strategy around three priorities - financial inclusion, environmental sustainability, and employeeattraction and retention – all of which guide its sustainability activities. Citigroup makes impressive investments in developing a strong and talentedworkforce, from running global recruitment programs to supporting employee networks and training programs for its diverse workforce. More than45% of its professional workforce is female, and Citigroup actively runs leadership development, sponsorship, and coaching programs for women toensure female talent is retained and developed. The company's comprehensive approach to developing its workforce extends to programs that focuson providing career development tools to veterans and active-duty military personnel. In 2012, the company also launched the Citi Salutes program toprovide financial support and resources for veterans -- one of many programs designed by the company to address access to capital for marginalgroups such as small businesses and communities.
Sustainability Scores
Sustainability Performance
Total Scores
Economic Dimension Environmental Dimension Social Dimension
United States of AmericaCountry
Company
253,000No of Employees
www.citigroup.comWeb
150,135Market cap (million)
Share
USDCurrency
53.56High 52 week
29.56Low 52 week
79,071Sales (million)
Key data
4.88EPS
10.12P/E Ratio
2012 2013E
90,708
3.98
12.40
COMPANY INFORMATION Source: Bloomberg / September 04, 2013
1 /
RobecoSAM AG - Josefstrasse 218 - 8005 Zürich - Switzerland - www.robecosam.com - Phone +41 44 653 10 30 - Fax +41 44 653 10 50 - [email protected]
1
Member of DJSI World, DJSI North America
15
Company Performance for Selected Criteria
Economic Dimension
Customer Relationship Management Risk & Crisis Management
Corporate Governance Anti-crime Policy/Measures
Environmental Dimension
Business Risks and Opportunities Environmental Policy/Management System
Environmental Reporting Operational Eco-Efficiency
Social Dimension
Controversial Issues, Dilemmas in Lending / Financing Labor Practice Indicators and Human Rights
Financial Inclusion Talent Attraction & Retention
For information on assessment criteria, visit www.sustainability-indices.com
DJSI industry averageCitigroup Inc Best company within industry
The diversified financial services and capital markets industry consists of a heterogeneous group of holding companies, credit agencies, stockexchanges, asset managers, custody banks and investment banking & brokerage companies. Accountability and leadership are crucial for building acompetitive advantage. Adherence to international best-practice standards in corporate governance, risk management and compliance is essential.Globalization, regulation, demographic shifts and climate change will continue to influence the business environment. Leading companies integrateenvironmental and social factors into their long-term strategies and performance reviews. A multi-stakeholder-driven approach to developinginnovative and prudent financial services and products is essential. Motivated, highly educated and experienced employees are crucial to developingsuch financial services and products as well as in attracting and retaining clients. Examples include venture capital investments focusing on newtechnologies that promote the transition to a low-carbon economy or improve resource efficiency, as well as the integration of environmental andsocial considerations into companies’ service portfolios.
Industry Drivers
22 / Industry Group Leader Report - 2013
Disclaimer: For internal use only/Confidentiality: The information and opinions contained in this publication are for internal use only. This information is destined exclusively for internal use of the recipient. Any recipient shalltreat this document as confidential and shall under no circumstances disclose or transmit any part of this document, including but not limited to the Index Data, the Components of the Index and the related descriptions,weightings, etc. to any third party. Furthermore the publication of the information as a whole is strictly prohibited even after the final publication of the DJSI Index 2013. No Offer: The information and opinions contained in thispublication neither constitute an offer nor an invitation to make an offer to buy or sell any securities or any options, futures or other derivatives related to such securities. The information described in this publication is notdirected to persons in any jurisdiction where the provision of such information would run counter to local laws and regulation. No warranty: This information is derived from sources believed to be accurate and reliable, butneither its accuracy nor completeness is guaranteed. The material and information in this information is provided "as is" and without warranties of any kind, either expressed or implied. RobecoSAM and their related andaffiliated 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 thecurrent 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 thispublication. Limitation of liability: All information contained in this publication is distributed with the understanding that the authors, publishers and distributors are not rendering any legal, accounting or other professionaladvice or opinions on specific facts or matters and accordingly assume no liability whatsoever in connection with its use. In no event shall RobecoSAM 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 thispublication are the exclusive property of RobecoSAM and/or its related, affiliated and subsidiary companies.
16
BG Group PLC
OIX Oil & Gas
INDUSTRY GROUP LEADER REPORT | 2013
BG Group PLC Best company within industryDJSI industry average
Company Description
BG Group was created at the time of the demerger of British Gas in 1997, and today operates in more than 20 countries on five continents. It is activein two main business segments: the exploration and production of natural gas and sales, and the shipping and marketing of liquefied natural gas. TheGroup uses its technical, commercial and gas chain knowledge to deliver projects at a competitive cost and maximize the sales value of its products.Production facilities are situated onshore and offshore. The gas is then transported to the liquefaction facilities or the local markets via pipeline. Theexploration and production segment includes all liquefaction operations. The company also diversifies its production methods and integratesunconventional gas resources into its portfolio, such as coal seam gas with a large production facility in Queensland, Australia and shale gasproduction in the United States. BG is headquartered in the United Kingdom but most of its more than 6000 employees work outside the UK in sitesaround the world.
BG Group’s sustainability strategy is based on the company’s robust application of its business principles, which cover a broad range of themesincluding ethical conduct, environmental stewardship, human rights, stakeholder management and working conditions for employees. In 2012, thecompany surpassed its one million ton greenhouse gas emission reduction target through its efficiency measures and reduction initiatives. A newtarget has been set for 2017, which aims to reduce overall intensity of GHG emissions by 10%. BG Group has also implemented measures to guaranteewater quality in facilities that are highly exposed to water related risks, developing local water management plants in those areas. The companyparticipated in the Rio +20 2012 United Nations Conference on Sustainable Development, and actively supports “Project Blue,” a project to developan ocean observation system for the Santos Basin, where the company holds some of its operations.
Sustainability Scores
Sustainability Performance
Total Scores
Economic Dimension Environmental Dimension Social Dimension
United KingdomCountry
Company
1,866No of Employees
www.bg-group.comWeb
42,728Market cap (million)
Share
GBpCurrency
1,357.00High 52 week
991.00Low 52 week
19,899Sales (million)
Key data
1.22EPS
1,027.00P/E Ratio
2012 2013E
18,933
1.29
969.86
COMPANY INFORMATION Source: Bloomberg / September 04, 2013
1 /
RobecoSAM AG - Josefstrasse 218 - 8005 Zürich - Switzerland - www.robecosam.com - Phone +41 44 653 10 30 - Fax +41 44 653 10 50 - [email protected]
1
Member of DJSI World, DJSI Europe
17
Company Performance for Selected Criteria
Economic Dimension
Exploration & Production Risk & Crisis Management
Corporate Governance Gas Portfolio
Environmental Dimension
Biodiversity Climate Strategy
Environmental Reporting Releases to the Environment
Social Dimension
Social Impacts on Communities Labor Practice Indicators and Human Rights
Human Capital Development Talent Attraction & Retention
For information on assessment criteria, visit www.sustainability-indices.com
DJSI industry averageBG Group PLC Best company within industry
Oil & gas companies’ ability to sustain long-term value creation will depend on access to next-generation assets. Companies are struggling withincreasing exploration and development costs stemming from smaller reserves with complex geology in deeper waters, rising taxes, increasingdependence on countries with high political risks, and mounting costs of oil services and manpower. As a result, keeping the cost base down will becrucial for the industry. As exploration moves to remote and environmentally sensitive locations, environmental, health & safety excellence, coupledwith progressive management of social issues will remain important aspects of oil & gas companies' long-term profitability. As for environmentalissues, the carbon challenge continues to top the agenda. Active corporate strategies that seek out related business opportunities and mitigate carbonrisks will be critical to securing companies’ future competitiveness. As poorer countries with weaker governance increasingly dominate new reservediscoveries, engagement with local communities should gain importance as an important component of sustainable risk management.
Industry Drivers
22 / Industry Group Leader Report - 2013
Disclaimer: For internal use only/Confidentiality: The information and opinions contained in this publication are for internal use only. This information is destined exclusively for internal use of the recipient. Any recipient shalltreat this document as confidential and shall under no circumstances disclose or transmit any part of this document, including but not limited to the Index Data, the Components of the Index and the related descriptions,weightings, etc. to any third party. Furthermore the publication of the information as a whole is strictly prohibited even after the final publication of the DJSI Index 2013. No Offer: The information and opinions contained in thispublication neither constitute an offer nor an invitation to make an offer to buy or sell any securities or any options, futures or other derivatives related to such securities. The information described in this publication is notdirected to persons in any jurisdiction where the provision of such information would run counter to local laws and regulation. No warranty: This information is derived from sources believed to be accurate and reliable, butneither its accuracy nor completeness is guaranteed. The material and information in this information is provided "as is" and without warranties of any kind, either expressed or implied. RobecoSAM and their related andaffiliated 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 thecurrent 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 thispublication. Limitation of liability: All information contained in this publication is distributed with the understanding that the authors, publishers and distributors are not rendering any legal, accounting or other professionaladvice or opinions on specific facts or matters and accordingly assume no liability whatsoever in connection with its use. In no event shall RobecoSAM 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 thispublication are the exclusive property of RobecoSAM and/or its related, affiliated and subsidiary companies.
18
Nestle SA
FOA Food Products
INDUSTRY GROUP LEADER REPORT | 2013
Nestle SA Best company within industryDJSI industry average
Company Description
Based in Switzerland, Nestle SA is a multinational food and beverages company with operations in 194 countries across the globe. The company'soperating segments are organized into three regional zones, comprising Europe, the Americas, and Asia, Oceania, & Africa. Additionally, threebusiness segments - Nestle Waters, Nestle Nutrition, and Other Food & Beverages (including Nespresso, Nestle Professional, Nestle Health & Science,and Pharma, Food & Beverage Joint Ventures) - are managed on a worldwide level. Product lines for the group are defined into the powdered &liquid beverages segment, the water segment, the milk products and ice cream business, nutrition & healthcare, prepared dishes & cooking aids,confectionary, and pet care segments. Group sales generated a total of CHF 92.2 billion in 2012; Nestle saw growth across all regional zones over theyear, with pronounced sales growth in the emerging markets in particular, where the group achieved growth of 11% with sales of 39.3 billion.
Nestlé's deep understanding of the pertinent sustainability issues that affect its business is evident in its thorough integration of sustainabilityconsiderations into its core operations on both global and local levels. The company defines core sustainability priorities in three areas: accessible andaffordable nutrition, water management and resource protection, and supporting rural development. To this aim, the company engages the fullbreadth of its operations in fulfilling these priorities. Nestlé's R&D activities - internally, such as through the wholly-owned subsidiary Nestlé HealthScience, and through joint ventures with other organizations, business partners, and universities - integrate consumer-centric criteria related to healthand nutrition across the value chain. Recognizing that substantial business risks may lie outside the company's immediate operations, Nestlé has alsoestablished the Sustainable Agriculture Initiative at Nestlé (SAIN) to address its water impacts and risks, support farmers and promote sustainabledevelopment within the agricultural supply chain.
Sustainability Scores
Sustainability Performance
Total Scores
Economic Dimension Environmental Dimension Social Dimension
SwitzerlandCountry
Company
339,000No of Employees
www.nestle.comWeb
195,907Market cap (million)
Share
CHFCurrency
70.00High 52 week
58.20Low 52 week
94,920Sales (million)
Key data
3.47EPS
17.52P/E Ratio
2012 2013E
89,931
3.35
18.12
COMPANY INFORMATION Source: Bloomberg / September 04, 2013
1 /
RobecoSAM AG - Josefstrasse 218 - 8005 Zürich - Switzerland - www.robecosam.com - Phone +41 44 653 10 30 - Fax +41 44 653 10 50 - [email protected]
1
Member of DJSI World, DJSI Europe
19
Company Performance for Selected Criteria
Economic Dimension
Strategy for Emerging Markets Corporate Governance
Supply Chain Management Health & Nutrition
Environmental Dimension
Water Related Risks Raw Material Sourcing
Environmental Reporting Operational Eco-Efficiency
Social Dimension
Talent Attraction & Retention Labor Practice Indicators and Human Rights
Occupational Health and Safety Human Capital Development
For information on assessment criteria, visit www.sustainability-indices.com
DJSI industry averageNestle SA Best company within industry
Growth in the food products industry will be driven by emerging market consumption, product innovation focusing on health and wellness and risingdemand for convenience food in the developed world. Health, wellness and nutrition have emerged as major growth categories and will remain in thespotlight for food manufacturers as a growing number of consumers becomes aware of the relationship between diet and health. The industry's mainchallenges include rising raw material prices, which have put pressure on volumes and margins. Effective packaging and supply chain managementcan help reduce costs and ensure food safety, a key concern that highlights the need for quality control and transparency along the supply chain.
Industry Drivers
22 / Industry Group Leader Report - 2013
Disclaimer: For internal use only/Confidentiality: The information and opinions contained in this publication are for internal use only. This information is destined exclusively for internal use of the recipient. Any recipient shalltreat this document as confidential and shall under no circumstances disclose or transmit any part of this document, including but not limited to the Index Data, the Components of the Index and the related descriptions,weightings, etc. to any third party. Furthermore the publication of the information as a whole is strictly prohibited even after the final publication of the DJSI Index 2013. No Offer: The information and opinions contained in thispublication neither constitute an offer nor an invitation to make an offer to buy or sell any securities or any options, futures or other derivatives related to such securities. The information described in this publication is notdirected to persons in any jurisdiction where the provision of such information would run counter to local laws and regulation. No warranty: This information is derived from sources believed to be accurate and reliable, butneither its accuracy nor completeness is guaranteed. The material and information in this information is provided "as is" and without warranties of any kind, either expressed or implied. RobecoSAM and their related andaffiliated 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 thecurrent 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 thispublication. Limitation of liability: All information contained in this publication is distributed with the understanding that the authors, publishers and distributors are not rendering any legal, accounting or other professionaladvice or opinions on specific facts or matters and accordingly assume no liability whatsoever in connection with its use. In no event shall RobecoSAM 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 thispublication are the exclusive property of RobecoSAM and/or its related, affiliated and subsidiary companies.
20
Woolworths Ltd
FDR Food & Staples Retailing
INDUSTRY GROUP LEADER REPORT | 2013
Woolworths Ltd Best company within industryDJSI industry average
Company Description
Woolworths Limited was founded in 1924 in Sydney, Australia. The group manages some of Australia and New Zealand’s largest brands, owning3,329 stores in Australia and New Zealand that span across food, liquor, gas stations, general merchandise, home improvement, and hotel venuesand retail outlets. Its businesses serve up to 28 million customers every week. Woolworths employs 190,000 employees across all operations and isranked 18th position worldwide in global retailing based on sales revenue. Despite difficult economic conditions, Woolworths continues to maintain astrong performance. Sales have increased by 4.8% over the year, and amount to AUD 55.1 billion. The group has made various investments over thepast years to optimize its operations, and as a result, its major businesses have seen improvements in efficiency, growth and innovation.
Woolworths’ sustainability strategy addresses all aspects of the business that are considered material and that could influence future performance. Itaims to align its sustainability strategy with its overall business objectives, while managing risks and taking advantage of emerging trends andopportunities through its sustainability initiatives. Woolworths emphasizes its relationship with suppliers and recognizes the importance of balancingthe best interests of its suppliers with those of its customers. More than 80% of its suppliers have been partners for a decade or longer. These closepartnerships have allowed for innovation and the development of new products for customers that are aligned with Woolworths’ sustainabilitystrategy. Woolworths has also made substantial efforts to develop a sustainable supply chain for its food market, offering products such as sustainably-sourced fish, or favoring locally grown fresh produce. It has also committed to a responsible gaming and liquor consumption policy. On an operationallevel and as part of its sustainability strategy, the group has invested AUD 66.5 million in efficiency improvement and carbon reduction measures.These investments are estimated to reduce operational costs by AUD 110.9 million by 2015.
Sustainability Scores
Sustainability Performance
Total Scores
Economic Dimension Environmental Dimension Social Dimension
AustraliaCountry
Company
190,000No of Employees
www.woolworthslimited.com.auWeb
44,484Market cap (million)
Share
AUDCurrency
36.84High 52 week
27.73Low 52 week
61,052Sales (million)
Key data
1.97EPS
18.05P/E Ratio
2012 2013E
55,130
1.90
18.69
COMPANY INFORMATION Source: Bloomberg / September 04, 2013
1 /
RobecoSAM AG - Josefstrasse 218 - 8005 Zürich - Switzerland - www.robecosam.com - Phone +41 44 653 10 30 - Fax +41 44 653 10 50 - [email protected]
1
Member of DJSI World, DJSI Asia Pacific, DJSI Australia
21
Company Performance for Selected Criteria
Economic Dimension
Health & Nutrition Corporate Governance
Supply Chain Management Codes of Conduct/Compliance/Corruption&Bribery
Environmental Dimension
Raw Material Sourcing Environmental Policy/Management System
Operational Eco-Efficiency Packaging
Social Dimension
Occupational Health and Safety Labor Practice Indicators and Human Rights
Human Capital Development
For information on assessment criteria, visit www.sustainability-indices.com
DJSI industry averageWoolworths Ltd Best company within industry
The food & stapes retail space has always been characterized by intense competition for market share. As a result, the industry has consolidated overthe past few years, with interest in M&A remaining high. The shift toward eating at home should continue to favor those companies that havecapitalized on this trend with expanded offerings of private label or store brands that carry higher margins than branded products. The health andwellness trend is also clearly evident as traditional food retailers increase their offering of natural and organic products and healthier formulations.International sourcing has increased and food retailers need to improve the efficiency and transparency of their supply chains. The industry alsoincludes drug retailers, which should become more relevant in managing rising health care costs: with the expiration of key drug patents, the market isset for a wave of generic drugs that will result in significant cost savings, both for retailers and consumers. The convenience of retail outlets and in-store clinics provides an ideal solution for affordable basic health care.
Industry Drivers
22 / Industry Group Leader Report - 2013
Disclaimer: For internal use only/Confidentiality: The information and opinions contained in this publication are for internal use only. This information is destined exclusively for internal use of the recipient. Any recipient shalltreat this document as confidential and shall under no circumstances disclose or transmit any part of this document, including but not limited to the Index Data, the Components of the Index and the related descriptions,weightings, etc. to any third party. Furthermore the publication of the information as a whole is strictly prohibited even after the final publication of the DJSI Index 2013. No Offer: The information and opinions contained in thispublication neither constitute an offer nor an invitation to make an offer to buy or sell any securities or any options, futures or other derivatives related to such securities. The information described in this publication is notdirected to persons in any jurisdiction where the provision of such information would run counter to local laws and regulation. No warranty: This information is derived from sources believed to be accurate and reliable, butneither its accuracy nor completeness is guaranteed. The material and information in this information is provided "as is" and without warranties of any kind, either expressed or implied. RobecoSAM and their related andaffiliated 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 thecurrent 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 thispublication. Limitation of liability: All information contained in this publication is distributed with the understanding that the authors, publishers and distributors are not rendering any legal, accounting or other professionaladvice or opinions on specific facts or matters and accordingly assume no liability whatsoever in connection with its use. In no event shall RobecoSAM 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 thispublication are the exclusive property of RobecoSAM and/or its related, affiliated and subsidiary companies.
22
Abbott Laboratories
MTC Health Care Equipment & Supplies
INDUSTRY GROUP LEADER REPORT | 2013
Abbott Laboratories Best company within industryDJSI industry average
Company Description
Abbott Laboratories is a diversified medical products company based in the United States, and focuses on the provision of science-based healthcare
offerings via its four business operations in diagnostics, medical devices, nutrition, and established pharmaceuticals. January 2013 saw Abbott
separate from its research-based proprietary pharmaceuticals business AbbVie, to focus on its broad portfolio of healthcare products aimed at
addressing essential areas of healthcare. Currently, Abbott's portfolio carries leading market positions in branded generic pharmaceuticals, adult and
pediatric nutritionals, core laboratory diagnostics, point of care and molecular diagnostics, and medical devices, including vascular devices, diabetes
care, and vision care. Following its split, the company is poised to develop an extensive pipeline of new technologies and products. Abbott is also
highly focused on expanding its presence in emerging markets, and currently generates 40% of its sales in key emerging market regions, with this
figure expected to grow to 50% by 2015.
Abbott's sustainability strategy is aligned according to four priorities that the company has defined with reference to its business model: pursuing
innovation towards healthcare challenges, expanding access to patient healthcare, supporting patients and consumers through engagement and
education, and minimizing environmental impact. Abbott's commitment to R&D is demonstrated through frequent collaborations with universities
and business partners to develop technologies and medical solutions. In 2012 the company announced a partnership with the University of North
Texas Science Center to develop a technology that can be used to rapidly identify bacteria, viruses, fungi and certain parasites, and provide information
on drug resistance and virulence - also useful for forensic science. It also leverages its activities in nutrition innovation to launch products and
formulations targeting consumers with specific dietary needs. Additionally, Abbott incorporates environmental sustainability across its production
value chain to ensure the efficient use of materials in developing its products.
Sustainability Scores
Sustainability Performance
Total Scores
Economic Dimension Environmental Dimension Social Dimension
United States of AmericaCountry
Company
91,000No of Employees
www.abbott.comWeb
51,177Market cap (million)
Share
USDCurrency
38.77High 52 week
29.98Low 52 week
22,111Sales (million)
Key data
2.01EPS
16.39P/E Ratio
2012 2013E
21,494
5.07
6.50
COMPANY INFORMATION Source: Bloomberg / September 04, 2013
1 /
RobecoSAM AG - Josefstrasse 218 - 8005 Zürich - Switzerland - www.robecosam.com - Phone +41 44 653 10 30 - Fax +41 44 653 10 50 - [email protected]
1
Member of DJSI World, DJSI North America
23
Company Performance for Selected Criteria
Economic Dimension
Corporate Governance Risk & Crisis Management
Innovation Management Marketing Practices
Environmental Dimension
Climate Strategy Environmental Policy/Management System
Environmental Reporting Operational Eco-Efficiency
Social Dimension
Human Capital Development Labor Practice Indicators and Human Rights
Health Outcome Contribution Stakeholder Engagement
For information on assessment criteria, visit www.sustainability-indices.com
DJSI industry averageAbbott Laboratories Best company within industry
The health care equipment & supplies industry develops medical products such as orthopedic implants and cardiovascular devices, as well as medicalsupplies and instruments. By facilitating the detection and effective treatment of chronic conditions, the industry plays a critical role in improving thequality of life for patients with chronic diseases. Product and service quality, safety management and collaboration with different stakeholders such asphysicians, payers and patients, are key to ensuring successful product commercialization and maintaining a social license to operate. Similar to otherhealth care segments, the industry has also been affected by health care reforms that affect pricing, reimbursement and utilization. On the other hand,efforts to broaden health care coverage in emerging markets coupled with rising income levels create new growth opportunities for the industry.Sustainable companies focus on developing highly differentiated products and on demonstrating their products’ clinical and economic benefits.Moreover, they adopt consistent, value and stakeholder-oriented corporate strategies and governance systems based on effective human andintellectual capital management and a transparent reporting framework.
Industry Drivers
22 / Industry Group Leader Report - 2013
Disclaimer: For internal use only/Confidentiality: The information and opinions contained in this publication are for internal use only. This information is destined exclusively for internal use of the recipient. Any recipient shalltreat this document as confidential and shall under no circumstances disclose or transmit any part of this document, including but not limited to the Index Data, the Components of the Index and the related descriptions,weightings, etc. to any third party. Furthermore the publication of the information as a whole is strictly prohibited even after the final publication of the DJSI Index 2013. No Offer: The information and opinions contained in thispublication neither constitute an offer nor an invitation to make an offer to buy or sell any securities or any options, futures or other derivatives related to such securities. The information described in this publication is notdirected to persons in any jurisdiction where the provision of such information would run counter to local laws and regulation. No warranty: This information is derived from sources believed to be accurate and reliable, butneither its accuracy nor completeness is guaranteed. The material and information in this information is provided "as is" and without warranties of any kind, either expressed or implied. RobecoSAM and their related andaffiliated 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 thecurrent 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 thispublication. Limitation of liability: All information contained in this publication is distributed with the understanding that the authors, publishers and distributors are not rendering any legal, accounting or other professionaladvice or opinions on specific facts or matters and accordingly assume no liability whatsoever in connection with its use. In no event shall RobecoSAM 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 thispublication are the exclusive property of RobecoSAM and/or its related, affiliated and subsidiary companies.
24
Henkel AG & Co KGaA
HOU Household Products
INDUSTRY GROUP LEADER REPORT | 2013
Henkel AG & Co KGaA Best company within industryDJSI industry average
Company Description
Founded in 1878 in Aachen, Henkel AG & CO is a global market leader for laundry & home care, beauty care and adhesive technologies. The groupowns retail brands such as Persil, Schwarzkopf and Loctite. The company is headquartered in Dusseldorf, Germany and employs 47,000 peopleworldwide. Sales in 2012 reached EUR 16.5 billion, with a 14.1% adjusted return on sales. The company boasts of a strong presence in emergingmarkets as 43% of total sales are generated from that region compared to 34% in Western Europe. 44% of total sales are generated by the group’stop 10 brands. Henkel AG & CO operates 171 production sites in 54 countries; the largest production facility being in Dusseldorf itself. In 2012, itinvested EUR 408 million in R&D, corresponding to 2.5% of all sales. Henkel has set ambitious targets for its future development – the group plans toincrease its sales to EUR 20 million, EUR 10 million of which is expected to come from its business in emerging markets. Henkel’s growth strategy isbased on the company’s corporate values and its four strategic priorities: Globalization, Outperformance, Simplification and Inspiration.
In 2012, Henkel developed a new group-wide sustainability strategy in close cooperation with its management board, which carries overallresponsibility for the company’s sustainability strategy. The company has been involved with environmental and sustainability activities for more than20 years, and has been publishing an environmental report since 1992. For the next 20 years, the company aims to increase company-wide outputefficiency threefold, by producing more with fewer raw materials. During the launch of the program, the company conducted 670 workshops in whichparticipants defined 6,000 practical sustainability measures as a starting point towards achieving this goal. Henkel also extends its sustainabilitystrategy to its suppliers, and has strict supply chain management requirements in place. Innovation management plays an important role in reducingthe ecological footprint of Henkel’s products. This aspect is at the center of the group’s sustainability strategy, and aims to improve all products acrossthe entire portfolio by taking every stage of the product’s lifecycle into account.
Sustainability Scores
Sustainability Performance
Total Scores
Economic Dimension Environmental Dimension Social Dimension
GermanyCountry
Company
46,867No of Employees
www.henkel.comWeb
29,115Market cap (million)
Share
EURCurrency
65.50High 52 week
47.60Low 52 week
16,838Sales (million)
Key data
4.03EPS
15.38P/E Ratio
2012 2013E
16,510
3.73
16.64
COMPANY INFORMATION Source: Bloomberg / September 04, 2013
1 /
RobecoSAM AG - Josefstrasse 218 - 8005 Zürich - Switzerland - www.robecosam.com - Phone +41 44 653 10 30 - Fax +41 44 653 10 50 - [email protected]
1
Member of DJSI World, DJSI Europe
25
Company Performance for Selected Criteria
Economic Dimension
Strategy for Emerging Markets Innovation Management
Corporate Governance Supply Chain Management
Environmental Dimension
Environmental Policy/Management System Product Stewardship
Environmental Reporting Operational Eco-Efficiency
Social Dimension
Human Capital Development Labor Practice Indicators and Human Rights
Talent Attraction & Retention Occupational Health and Safety
For information on assessment criteria, visit www.sustainability-indices.com
DJSI industry averageHenkel AG & Co KGaA Best company within industry
Producers of nondurable household products operate in a highly competitive, multi-brand environment. Brand recognition and high innovationcapabilities are at the heart of companies’ strategies, shaping their market position and ability to gain market share. Household products come intodirect or indirect contact with the human body and end up in the natural environment, leading to concerns over product safety and demand forproduct improvements and reformulations. A changing regulatory environment mandating the use of ingredients & chemicals also drives innovation,ultimately setting higher quality and safety standards. Such factors, combined with restrictions on emissions, energy consumption and water use havean impact on production and operating costs. A sound strategy for engagement in emerging markets continues to be a key success factor forcompanies in this industry. In order to remain successful, companies must adapt their product development and marketing strategies to the specificdemands of these markets while providing value-adding products on a sufficiently small scale and at affordable prices.
Industry Drivers
22 / Industry Group Leader Report - 2013
Disclaimer: For internal use only/Confidentiality: The information and opinions contained in this publication are for internal use only. This information is destined exclusively for internal use of the recipient. Any recipient shalltreat this document as confidential and shall under no circumstances disclose or transmit any part of this document, including but not limited to the Index Data, the Components of the Index and the related descriptions,weightings, etc. to any third party. Furthermore the publication of the information as a whole is strictly prohibited even after the final publication of the DJSI Index 2013. No Offer: The information and opinions contained in thispublication neither constitute an offer nor an invitation to make an offer to buy or sell any securities or any options, futures or other derivatives related to such securities. The information described in this publication is notdirected to persons in any jurisdiction where the provision of such information would run counter to local laws and regulation. No warranty: This information is derived from sources believed to be accurate and reliable, butneither its accuracy nor completeness is guaranteed. The material and information in this information is provided "as is" and without warranties of any kind, either expressed or implied. RobecoSAM and their related andaffiliated 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 thecurrent 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 thispublication. Limitation of liability: All information contained in this publication is distributed with the understanding that the authors, publishers and distributors are not rendering any legal, accounting or other professionaladvice or opinions on specific facts or matters and accordingly assume no liability whatsoever in connection with its use. In no event shall RobecoSAM 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 thispublication are the exclusive property of RobecoSAM and/or its related, affiliated and subsidiary companies.
26
Allianz SE
INS Insurance
INDUSTRY GROUP LEADER REPORT | 2013
Allianz SE Best company within industryDJSI industry average
Company Description
Founded in Berlin in 1889, Allianz SE is a global insurance and financial services firm headquartered in Munich, Germany, and is the holding companyof Allianz Group. Through its regional subsidiaries, the Group provides property and casualty insurance and life/health insurance products to privateand corporate clients, in addition to its proprietary and third party asset management services operating under Allianz Investment Management SEand Allianz Asset Management, respectively. Allianz's insurance business generates over 80% of total revenue, and the Group has built up significantpresence in Western European and US markets, with over half of overall operating profits coming from these regions. The company also runs bankingoperations to support its insurance business in Germany, Italy, France, the Netherlands and Bulgaria. In total, Allianz's offerings span over 70countries, making the company one of the leading insurance providers globally. 2012 saw Allianz SE and its subsidiaries - the Allianz Group - increasetheir operating profit by 20.8% to EUR 9.5 billion.
Allianz SE's superior sustainability strategy is characterized by its relevant and comprehensive identification of relevant material sustainability issues forthe company and for the insurance industry. This effort has informed the company's entire range of sustainability activities, allowing Allianz tosuccessfully recognize and leverage the insurance industry's potential for providing solutions to global sustainability concerns. Estimating a potentialmarket of USD 40 billion in microinsurance premiums, Allianz has partnered with the German development agency GIZ to offer innovativemicroinsurance products in crop insurance and life insurance & savings plans in Asia, Africa, and Latin America as part of its strategy to increase accessto financial services for a developing middle class in emerging markets. The company's integration of its sustainability and business strategy extends tothe asset management business, where Allianz manages EUR 64.4 billion in sustainable and responsible investments as of 2012, and is a leadingEuropean investor in renewable energy.
Sustainability Scores
Sustainability Performance
Total Scores
Economic Dimension Environmental Dimension Social Dimension
GermanyCountry
Company
145,538No of Employees
www.allianz.comWeb
49,881Market cap (million)
Share
EURCurrency
122.10High 52 week
87.60Low 52 week
102,445Sales (million)
Key data
13.09EPS
8.36P/E Ratio
2012 2013E
96,020
11.42
9.58
COMPANY INFORMATION Source: Bloomberg / September 04, 2013
1 /
RobecoSAM AG - Josefstrasse 218 - 8005 Zürich - Switzerland - www.robecosam.com - Phone +41 44 653 10 30 - Fax +41 44 653 10 50 - [email protected]
1
Member of DJSI World, DJSI Europe
27
Company Performance for Selected Criteria
Economic Dimension
Customer Relationship Management Risk & Crisis Management
Corporate Governance Codes of Conduct/Compliance/Corruption&Bribery
Environmental Dimension
Business Risks and Opportunities Risk Detection
Environmental Reporting Operational Eco-Efficiency
Social Dimension
Human Capital Development Labor Practice Indicators and Human Rights
Financial Inclusion Talent Attraction & Retention
For information on assessment criteria, visit www.sustainability-indices.com
DJSI industry averageAllianz SE Best company within industry
Insurance is all about managing risk. Products and services offered by the insurance industry include liability, life and health insurance, as well asreinsurance and financial services. Because insurers rely on motivated, highly qualified and experienced employees to develop innovative products andattract and retain clients, they must invest in employee relations, remuneration systems and knowledge management. Climate change and resourcescarcity have become important issues as natural disasters and relatively small events resulting from extreme weather conditions have well-knownconsequences for the insurance industry. Other important issues include changing demographics, obesity, and other new health risks. Consequently,the incorporation of sustainability factors into the investment, product and risk management strategy is an essential factor that differentiates theleading insurers that are well-positioned to succeed.
Industry Drivers
22 / Industry Group Leader Report - 2013
Disclaimer: For internal use only/Confidentiality: The information and opinions contained in this publication are for internal use only. This information is destined exclusively for internal use of the recipient. Any recipient shalltreat this document as confidential and shall under no circumstances disclose or transmit any part of this document, including but not limited to the Index Data, the Components of the Index and the related descriptions,weightings, etc. to any third party. Furthermore the publication of the information as a whole is strictly prohibited even after the final publication of the DJSI Index 2013. No Offer: The information and opinions contained in thispublication neither constitute an offer nor an invitation to make an offer to buy or sell any securities or any options, futures or other derivatives related to such securities. The information described in this publication is notdirected to persons in any jurisdiction where the provision of such information would run counter to local laws and regulation. No warranty: This information is derived from sources believed to be accurate and reliable, butneither its accuracy nor completeness is guaranteed. The material and information in this information is provided "as is" and without warranties of any kind, either expressed or implied. RobecoSAM and their related andaffiliated 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 thecurrent 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 thispublication. Limitation of liability: All information contained in this publication is distributed with the understanding that the authors, publishers and distributors are not rendering any legal, accounting or other professionaladvice or opinions on specific facts or matters and accordingly assume no liability whatsoever in connection with its use. In no event shall RobecoSAM 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 thispublication are the exclusive property of RobecoSAM and/or its related, affiliated and subsidiary companies.
28
Akzo Nobel NV
CHM Chemicals
INDUSTRY GROUP LEADER REPORT | 2013
Akzo Nobel NV Best company within industryDJSI industry average
Company Description
Akzo Nobel NV is a manufacturer of paints, coatings and specialty chemicals, and is headquartered in Amsterdam in The Netherlands. The companyoperates through three complementary business segments: Decorative Paints, Performance Coatings, and Specialty Chemicals. Within the decorativepaints segment, the company manufactures architectural coating, woodcare, and specialty products such as varnishes, and pre-décor products such asfillers, wall treatments. Under the performance coatings segment, it produces general industrial, protective, vehicle, automotive, aerospace, powder,marine, and packaging coatings. Within the specialty chemicals segment, it produces industrial and base chemicals, performance chemicals, used forfabric care, and paper and pulp chemicals. The company's key brands are Dulux, Sikkens, International and Eka. Over the 2012 fiscal year, thecompany employed 50,600 people worldwide and generated revenues of EUR 15.4 billion, with the decorative paints, performance coatings, andspecialty chemicals segments, accounting for 27%, 37%, and 36% of total revenue respectively.
Akzo Nobel exhibits superior sustainability performance year on year due to its commitment to sustainability issues and its consideration ofsustainability-related factors into its business segment drivers. The company continues to make strides in product stewardship management throughits rigorous product lifecycle assessment process. By devising the Eco-premium solutions concept, an assessment tool for Akzo Nobel products, thecompany's R&D experts are able to scan the product portfolio according to health, safety and environmental criteria to identify eco-efficient products.Eco-premium labeled products accounted for 22% of the company's revenues for 2012. The company also actively works to reduce its environmentalimpact across the value chain, measuring its progress on raw material efficiency and energy consumption reduction. This extends beyond itsoperations, as the company has implemented a comprehensive supplier policy, which includes procedures for the evaluation of suppliers according tosustainability criteria.
Sustainability Scores
Sustainability Performance
Total Scores
Economic Dimension Environmental Dimension Social Dimension
NetherlandsCountry
Company
50,500No of Employees
www.akzonobel.comWeb
10,904Market cap (million)
Share
EURCurrency
53.82High 52 week
39.95Low 52 week
14,837Sales (million)
Key data
2.94EPS
15.33P/E Ratio
2012 2013E
15,390
3.36
13.41
COMPANY INFORMATION Source: Bloomberg / September 04, 2013
1 /
RobecoSAM AG - Josefstrasse 218 - 8005 Zürich - Switzerland - www.robecosam.com - Phone +41 44 653 10 30 - Fax +41 44 653 10 50 - [email protected]
1
Member of DJSI World, DJSI Europe
29
Company Performance for Selected Criteria
Economic Dimension
Corporate Governance Risk & Crisis Management
Innovation Management Supply Chain Management
Environmental Dimension
Climate Strategy Product Stewardship
Environmental Reporting Operational Eco-Efficiency
Social Dimension
Human Capital Development Labor Practice Indicators and Human Rights
Talent Attraction & Retention Occupational Health and Safety
For information on assessment criteria, visit www.sustainability-indices.com
DJSI industry averageAkzo Nobel NV Best company within industry
The chemical industry comprises companies that develop, manufacture and distribute specialty and commodity chemicals, plastics, industrial gasesand agrochemicals as well as additives for the health care and wellness industries. Innovative process and product developments remain key industrydrivers. However, growing awareness of the environmental impact of chemical operations has resulted in legislative and consumer pressure drivingchemical companies to embrace more sustainable approaches. This has led the chemical industry to increasingly adopt green chemistry practices,including the implementation of strict emission controls, the use of (bio)catalysis, more efficient waste management, atom economy and thereplacement of traditional solvents and hazardous reagents with renewable materials. Further, new product applications require the implementationof comprehensive product stewardship management systems that include product databases and client training.
Industry Drivers
22 / Industry Group Leader Report - 2013
Disclaimer: For internal use only/Confidentiality: The information and opinions contained in this publication are for internal use only. This information is destined exclusively for internal use of the recipient. Any recipient shalltreat this document as confidential and shall under no circumstances disclose or transmit any part of this document, including but not limited to the Index Data, the Components of the Index and the related descriptions,weightings, etc. to any third party. Furthermore the publication of the information as a whole is strictly prohibited even after the final publication of the DJSI Index 2013. No Offer: The information and opinions contained in thispublication neither constitute an offer nor an invitation to make an offer to buy or sell any securities or any options, futures or other derivatives related to such securities. The information described in this publication is notdirected to persons in any jurisdiction where the provision of such information would run counter to local laws and regulation. No warranty: This information is derived from sources believed to be accurate and reliable, butneither its accuracy nor completeness is guaranteed. The material and information in this information is provided "as is" and without warranties of any kind, either expressed or implied. RobecoSAM and their related andaffiliated 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 thecurrent 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 thispublication. Limitation of liability: All information contained in this publication is distributed with the understanding that the authors, publishers and distributors are not rendering any legal, accounting or other professionaladvice or opinions on specific facts or matters and accordingly assume no liability whatsoever in connection with its use. In no event shall RobecoSAM 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 thispublication are the exclusive property of RobecoSAM and/or its related, affiliated and subsidiary companies.
30
Telenet Group Holding NV
PUB Media
INDUSTRY GROUP LEADER REPORT | 2013
Telenet Group Holding NV Best company within industryDJSI industry average
Company Description
Established in 1996, Telenet Group Holding NV is the largest provider of cable broadband services in Belgium. It offers a complete range of telecomservices for residential customers in Flanders and Brussels, such as cable, broadband Internet, and fixed and mobile telephone services through itshybrid fiber coaxial network. Telenet provides its mobile service via a partnership with Mobistar SA. Professional communications services are providedto corporate customers in Belgium and Luxembourg under the Telenet Solutions brand name. Telenet’s operations are situated within the television,internet and telephony businesses. In 2012, revenues increased by 8% to EUR 1.5 billion. The outlook for Telenet is positive; the company has investedEUR 353.2 million, corresponding to 24% of its revenue, into future business development. The company employed 2,133 people at the end of 2012.
Telenet’s commitment to the environment and social sustainability has earned it the position of Industry Group Leader in the Media Industry Group.Innovation, creativity, digital progress, and customer satisfaction are key distinguishing factors for companies in this sector. The company puts greatemphasis on customer relationship management. The company boasts outstanding customer service, and by consistently measuring company loyalty,has structured its services to maximize customer satisfaction. The group implements its sustainability strategy through the “Linking Environment andProfit” (LEAP) program. Launched in 2010, this program is an integral part of Telenet’s long-term strategy and overarching business vision. By 2015,Telenet aims to be climate-neutral relative to its emission levels in 2007. Through these measures the group plans to address and mitigate futuresustainability risks. In 2012 the group shifted all of its electricity consumption to green electricity sources, reducing its CO2 emissions by 25%.
Sustainability Scores
Sustainability Performance
Total Scores
Economic Dimension Environmental Dimension Social Dimension
BelgiumCountry
Company
2,141No of Employees
www.telenet.beWeb
4,202Market cap (million)
Share
EURCurrency
38.42High 52 week
24.22Low 52 week
1,660Sales (million)
Key data
1.14EPS
32.10P/E Ratio
2012 2013E
1,489
1.10
33.21
COMPANY INFORMATION Source: Bloomberg / September 04, 2013
1 /
RobecoSAM AG - Josefstrasse 218 - 8005 Zürich - Switzerland - www.robecosam.com - Phone +41 44 653 10 30 - Fax +41 44 653 10 50 - [email protected]
1
Member of DJSI World, DJSI Europe
31
Company Performance for Selected Criteria
Economic Dimension
Independence of Content Codes of Conduct/Compliance/Corruption&Bribery
Corporate Governance Online Risks and Opportunities
Environmental Dimension
Environmental Policy/Management System Environmental Reporting
Operational Eco-Efficiency
Social Dimension
Responsibility of Content Labor Practice Indicators and Human Rights
Talent Attraction & Retention Social Reporting
For information on assessment criteria, visit www.sustainability-indices.com
DJSI industry averageTelenet Group Holding NV Best company within industry
The heterogeneous and competitive media industry is experiencing a major shift towards the digitization and electronic presentation of content.Publishing companies that embrace this shift and increase their revenue streams from online market segments will emerge as industry leaders. Theuse of new technologies, coupled with innovative thinking, content and channel management are important to tapping new markets and creating newbusiness opportunities. Companies that consistently invest in retaining a talented, creative and motivated workforce while producing and continuouslyreplenishing unique, valuable publishing content have led the industry. Rising literacy rates in developing countries offer the media industry a hugemarket with strong growth potential over the coming years. Social factors such as anti-discrimination policies for the workforce and cultural sensitivitytoward clients and communities remain at the center of public attention and scrutiny. Given media companies’ power to shape public opinion,accountability and transparency are also important factors.
Industry Drivers
22 / Industry Group Leader Report - 2013
Disclaimer: For internal use only/Confidentiality: The information and opinions contained in this publication are for internal use only. This information is destined exclusively for internal use of the recipient. Any recipient shalltreat this document as confidential and shall under no circumstances disclose or transmit any part of this document, including but not limited to the Index Data, the Components of the Index and the related descriptions,weightings, etc. to any third party. Furthermore the publication of the information as a whole is strictly prohibited even after the final publication of the DJSI Index 2013. No Offer: The information and opinions contained in thispublication neither constitute an offer nor an invitation to make an offer to buy or sell any securities or any options, futures or other derivatives related to such securities. The information described in this publication is notdirected to persons in any jurisdiction where the provision of such information would run counter to local laws and regulation. No warranty: This information is derived from sources believed to be accurate and reliable, butneither its accuracy nor completeness is guaranteed. The material and information in this information is provided "as is" and without warranties of any kind, either expressed or implied. RobecoSAM and their related andaffiliated 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 thecurrent 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 thispublication. Limitation of liability: All information contained in this publication is distributed with the understanding that the authors, publishers and distributors are not rendering any legal, accounting or other professionaladvice or opinions on specific facts or matters and accordingly assume no liability whatsoever in connection with its use. In no event shall RobecoSAM 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 thispublication are the exclusive property of RobecoSAM and/or its related, affiliated and subsidiary companies.
32
Roche Holding AG
DRG Pharmaceuticals
INDUSTRY GROUP LEADER REPORT | 2013
Roche Holding AG Best company within industryDJSI industry average
Company Description
Headquartered in Switzerland, Roche Holding AG is the world's largest biopharmaceutical company. Roche provides drugs for the treatment of cancer,autoimmune diseases, inflammatory diseases, virology, metabolic disorders, cardiovascular disease, and is a global leader in in-vitro diagnostics. Thecompany's business is divided into pharmaceuticals and diagnostics, with the pharmaceutical segment consisting of Roche Pharmaceuticals, biotechcompany Genentech, and Tokyo-based pharmaceutical firm Chugai, and the diagnostics segment comprising applied science, diabetes care, andprofessional, molecular, and tissue diagnostics. 2012 saw Roche generate CHF 45.5 billion in sales, 77% of which came from its pharmaceuticalsdivision. Alongside strong growth in the United States, Roche also generated a fifth of its sales from emerging markets across Asia and Latin America,underscoring the growing importance of these regions to the pharmaceutical industry.
Roche continues to exhibit leadership in aligning its business with core sustainability drivers for the pharmaceutical industry. Collaborations withacademia, research institutes, venture firms and biotech companies – around 150 active partnerships in total – have driven Roche’s broad approach toinnovation, while making considerable strides towards furthering access to healthcare. 2012 saw the Roche Group invest CHF 8.4 million in coreresearch and development, and launch 55 major products within the Diagnostics business segment alone. Roche’s commitment to inclusive access tomedicine has also been demonstrated through its continued work with stakeholders to improve effectiveness of clinical treatment. Roche extends itscollaborative strengths to its strategy for talent attraction and retention in the scientific field, working with academic groups through postdoctoralprograms in Europe, the US, China, and Japan.
Sustainability Scores
Sustainability Performance
Total Scores
Economic Dimension Environmental Dimension Social Dimension
SwitzerlandCountry
Company
82,089No of Employees
www.roche.comWeb
201,523Market cap (million)
Share
CHFCurrency
258.50High 52 week
176.00Low 52 week
47,505Sales (million)
Key data
15.05EPS
15.48P/E Ratio
2012 2013E
45,499
13.62
17.10
COMPANY INFORMATION Source: Bloomberg / September 04, 2013
1 /
RobecoSAM AG - Josefstrasse 218 - 8005 Zürich - Switzerland - www.robecosam.com - Phone +41 44 653 10 30 - Fax +41 44 653 10 50 - [email protected]
1
Member of DJSI World, DJSI Europe
33
Company Performance for Selected Criteria
Economic Dimension
Corporate Governance Innovation Management
Marketing Practices Supply Chain Management
Environmental Dimension
Environmental Reporting Operational Eco-Efficiency
Social Dimension
Strategy to Improve Access to Drugs or Products Health Outcome Contribution
Addressing Cost Burden Talent Attraction & Retention
For information on assessment criteria, visit www.sustainability-indices.com
DJSI industry averageRoche Holding AG Best company within industry
The pharmaceutical industry relies on innovation and the development of novel drugs. Despite large investments in R&D, the industry has experienceddeclining R&D productivity, resulting in limited product pipelines. Further, following patent expirations for many blockbuster drugs, many companieshave been losing revenues to competition from generics. However, the industry has recently shown signs of improvement in R&D productivity, asseveral pharmaceutical companies have brought innovative products to the market. Exploding health care costs are driving resource-constrainedgovernments to cut health care budgets, putting pressure on drug pricing. In addition, payers are increasingly evaluating not only the clinical efficacybut also the cost-effectiveness and cost-benefits of pharmaceutical products to determine pricing and reimbursement. To return to growth, preserveprofitability and generate higher returns, pharmaceutical companies must attract and retain the best talent, and employ effective innovationmanagement to develop innovative drugs that address unmet medical needs. Other challenges include patient access to and compliance withtherapeutic treatments, as well as changing distribution models and global patent protection. In addition, pharmaceutical companies face ethicaldiscussions related to marketing practices and drug quality and safety.
Industry Drivers
22 / Industry Group Leader Report - 2013
Disclaimer: For internal use only/Confidentiality: The information and opinions contained in this publication are for internal use only. This information is destined exclusively for internal use of the recipient. Any recipient shalltreat this document as confidential and shall under no circumstances disclose or transmit any part of this document, including but not limited to the Index Data, the Components of the Index and the related descriptions,weightings, etc. to any third party. Furthermore the publication of the information as a whole is strictly prohibited even after the final publication of the DJSI Index 2013. No Offer: The information and opinions contained in thispublication neither constitute an offer nor an invitation to make an offer to buy or sell any securities or any options, futures or other derivatives related to such securities. The information described in this publication is notdirected to persons in any jurisdiction where the provision of such information would run counter to local laws and regulation. No warranty: This information is derived from sources believed to be accurate and reliable, butneither its accuracy nor completeness is guaranteed. The material and information in this information is provided "as is" and without warranties of any kind, either expressed or implied. RobecoSAM and their related andaffiliated 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 thecurrent 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 thispublication. Limitation of liability: All information contained in this publication is distributed with the understanding that the authors, publishers and distributors are not rendering any legal, accounting or other professionaladvice or opinions on specific facts or matters and accordingly assume no liability whatsoever in connection with its use. In no event shall RobecoSAM 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 thispublication are the exclusive property of RobecoSAM and/or its related, affiliated and subsidiary companies.
34
Stockland
REA Real Estate
INDUSTRY GROUP LEADER REPORT | 2013
Stockland Best company within industryDJSI industry average
Company Description
Stockland celebrated the 60th anniversary of its establishment as an Australia based diversified property group in 2012. The company is engaged inthe development and management of real estate projects, primarily in Australia, the UK, and New Zealand. It holds a diversified portfolio of retail,commercial and industrial investment properties. Additionally, Stockland manages residential communities and retirement villages, and providesproperty trust and property management services. The majority of the group’s portfolio is in residential property valued at AUD 21.2 billion. It alsoowns 41 commercial retail centers, valued at AUD 5.3 billion; an office portfolio of 16 properties valued at AUD 1.6 billion and an industrial propertyportfolio of 13 properties with a value of AUD 0.8 billion. Currently, Stockland is rebalancing its portfolio away from Office and Industrial estatetowards higher returning, less volatile retail assets. So far, this has worked well, as operating profit from the Retail Business rose 8% to AUD 310million in 2012, while Office and Industrial profit growth slowed down.
In 2012, Stockland was selected to participate in the international pilot for integrated reporting, led by the International Integrated ReportingCommittee (IIRC). Through this pilot, the company has reported combined financial, social and environmental performance for the first time.Stockland strives to achieve balanced performance on all three dimensions, and this strategy is mirrored in its sustainability achievements. Stockland’ssustainability performance report identifies issues material to the company’s business by following three steps: issue capture, issue prioritization, andresponse. These material sustainability indicators are reviewed annually with respect to four priority areas: customer engagement (includingsatisfaction, demographic shifts and social integration issues), community development partnerships (e.g. the creation of social hubs), energy andclimate change (internal and external engagement), and natural resources. The successful translation of these issues into opportunities is visiblethrough the development of revenue-generating activities, such as on-site electricity generation and increased sales of residential property.
Sustainability Scores
Sustainability Performance
Total Scores
Economic Dimension Environmental Dimension Social Dimension
AustraliaCountry
Company
1,013No of Employees
www.stockland.com.auWeb
8,693Market cap (million)
Share
AUDCurrency
3.98High 52 week
3.23Low 52 week
1,839Sales (million)
Key data
.24EPS
15.84P/E Ratio
2012 2013E
2,030
.22
16.83
COMPANY INFORMATION Source: Bloomberg / September 04, 2013
1 /
RobecoSAM AG - Josefstrasse 218 - 8005 Zürich - Switzerland - www.robecosam.com - Phone +41 44 653 10 30 - Fax +41 44 653 10 50 - [email protected]
1
Member of DJSI World, DJSI Asia Pacific, DJSI Australia
35
Company Performance for Selected Criteria
Economic Dimension
Antitrust Policy Risk & Crisis Management
Corporate Governance Codes of Conduct/Compliance/Corruption&Bribery
Environmental Dimension
Building Materials Climate Strategy
Environmental Reporting Resource Conservation and Resource Efficiency
Social Dimension
Human Capital Development Labor Practice Indicators and Human Rights
Talent Attraction & Retention Social Integration
For information on assessment criteria, visit www.sustainability-indices.com
DJSI industry averageStockland Best company within industry
Real estate is a heterogeneous industry comprising developers and maintenance professionals as well as residential and commercial propertymanagers and investors. Climate change and energy efficiency is of great importance for this industry as buildings are responsible for about one thirdof global greenhouse gas emissions. Additionally, low-energy buildings that use innovative materials reduce the impact of volatile energy prices on thecost of management and ownership of a property. This results in high demand for residential, commercial and industrial green buildings. Besidesenvironmental issues, social responsibility and social integration are gaining importance in this industry as well. In the current volatile economicenvironment, community engagement and investment around properties is receiving increased attention to keep asset values high and to remain thepreferred proprietor for tenants.
Industry Drivers
22 / Industry Group Leader Report - 2013
Disclaimer: For internal use only/Confidentiality: The information and opinions contained in this publication are for internal use only. This information is destined exclusively for internal use of the recipient. Any recipient shalltreat this document as confidential and shall under no circumstances disclose or transmit any part of this document, including but not limited to the Index Data, the Components of the Index and the related descriptions,weightings, etc. to any third party. Furthermore the publication of the information as a whole is strictly prohibited even after the final publication of the DJSI Index 2013. No Offer: The information and opinions contained in thispublication neither constitute an offer nor an invitation to make an offer to buy or sell any securities or any options, futures or other derivatives related to such securities. The information described in this publication is notdirected to persons in any jurisdiction where the provision of such information would run counter to local laws and regulation. No warranty: This information is derived from sources believed to be accurate and reliable, butneither its accuracy nor completeness is guaranteed. The material and information in this information is provided "as is" and without warranties of any kind, either expressed or implied. RobecoSAM and their related andaffiliated 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 thecurrent 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 thispublication. Limitation of liability: All information contained in this publication is distributed with the understanding that the authors, publishers and distributors are not rendering any legal, accounting or other professionaladvice or opinions on specific facts or matters and accordingly assume no liability whatsoever in connection with its use. In no event shall RobecoSAM 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 thispublication are the exclusive property of RobecoSAM and/or its related, affiliated and subsidiary companies.
36
Lotte Shopping Co Ltd
RTS Retailing
INDUSTRY GROUP LEADER REPORT | 2013
Lotte Shopping Co Ltd Best company within industryDJSI industry average
Company Description
Established in Seoul, Korea, in 1979, Lotte Shopping has expanded into a large retail group comprising four divisions: Lotte Department Store, LotteMart, Lotte Super and Lotte Cinema. The group mainly operates discount stores, supermarkets and cinemas. Lotte Shopping is the leading distributorin Korea and has also expanded its operations into foreign markets such as China, Russia, Vietnam and Indonesia. The company owns 556 storesdomestically and 135 stores abroad. The group plans to strengthen its position in developing markets by opening new stores in the upcoming years. In2012, the group also integrated a new subsidiary, Lotte Himart, Korea’s leading consumer electronics retailer. During FY 2012, despite the economicslowdown and decreasing customer demand, Lotte Shopping managed to maintain record growth with net profits of KRW 1,157.6 billion,representing an increase of 14.3% from the last fiscal year. The largest share of sales came from the Department Store and supermarket divisionaccounting for 33.6% and 35.1% of revenues respectively.
Lotte Shopping has maintained its position as Industry Group Leader in the Retailing Industry for the fourth consecutive year. Through the company’s“Equal Projects” corporate sustainability management framework, the group works to combine its business performance interests with environmentaland social targets. The “Equal Projects” framework defines 10 specific projects in 5 main fields of business operations: the Environment, the Product,the Workplace, the Supplier and Society. Through this strategy, Lotte Shopping aims to fully integrate sustainability into its business by matching itsgains in sustainability performance with its financial gains. The company documents its progress with thorough and consistent reporting onenvironmental and social KPIs. This effort has awarded Lotte external recognition, both domestically and internationally, for its efforts in the fields ofservice, logistics, environmental management and transparent management.
Sustainability Scores
Sustainability Performance
Total Scores
Economic Dimension Environmental Dimension Social Dimension
Republic of KoreaCountry
Company
19,820No of Employees
www.lotteshopping.comWeb
11,226,503Market cap (million)
Share
KRWCurrency
420,000.00High 52 week
300,500.00Low 52 week
29,122,280Sales (million)
Key data
33,193.10EPS
10.74P/E Ratio
2012 2013E
16,121,838
35,058.00
10.17
COMPANY INFORMATION Source: Bloomberg / September 04, 2013
1 /
RobecoSAM AG - Josefstrasse 218 - 8005 Zürich - Switzerland - www.robecosam.com - Phone +41 44 653 10 30 - Fax +41 44 653 10 50 - [email protected]
1
Member of DJSI World, DJSI Asia Pacific, DJSI Korea
37
Company Performance for Selected Criteria
Economic Dimension
Customer Relationship Management Brand Management
Corporate Governance Supply Chain Management
Environmental Dimension
Environmental Policy/Management System Environmental Reporting
Operational Eco-Efficiency Packaging
Social Dimension
Human Capital Development Labor Practice Indicators and Human Rights
Talent Attraction & Retention Stakeholder Engagement
For information on assessment criteria, visit www.sustainability-indices.com
DJSI industry averageLotte Shopping Co Ltd Best company within industry
The retailing industry continues its shift toward multinational conglomerates with global supply and distribution networks, contributing to improvedinventory management and marketing plans. To increase their market share, successful retailers will need to continue to develop new strategies andtechnologies to retain and analyze customers and their purchasing habits, as well as implement more responsive and tailored customer relationshipmanagement systems. Distribution channels such as e-commerce, home delivery services and pick-up systems are gaining importance. Faced withintense stakeholder scrutiny, companies need to address the efficiency and safety of their supply chain management, distribution systems and the useand disposal of packaging. Responsible sourcing has also gained significance among various stakeholders, and consumers have shown a willingness topay a premium for companies that adopt healthy environmental practices. Within this context, retailers must establish long-term relationships withsuppliers and provide for enhanced transparency on their supply chain management systems in order to minimize reputational risks.
Industry Drivers
22 / Industry Group Leader Report - 2013
Disclaimer: For internal use only/Confidentiality: The information and opinions contained in this publication are for internal use only. This information is destined exclusively for internal use of the recipient. Any recipient shalltreat this document as confidential and shall under no circumstances disclose or transmit any part of this document, including but not limited to the Index Data, the Components of the Index and the related descriptions,weightings, etc. to any third party. Furthermore the publication of the information as a whole is strictly prohibited even after the final publication of the DJSI Index 2013. No Offer: The information and opinions contained in thispublication neither constitute an offer nor an invitation to make an offer to buy or sell any securities or any options, futures or other derivatives related to such securities. The information described in this publication is notdirected to persons in any jurisdiction where the provision of such information would run counter to local laws and regulation. No warranty: This information is derived from sources believed to be accurate and reliable, butneither its accuracy nor completeness is guaranteed. The material and information in this information is provided "as is" and without warranties of any kind, either expressed or implied. RobecoSAM and their related andaffiliated 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 thecurrent 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 thispublication. Limitation of liability: All information contained in this publication is distributed with the understanding that the authors, publishers and distributors are not rendering any legal, accounting or other professionaladvice or opinions on specific facts or matters and accordingly assume no liability whatsoever in connection with its use. In no event shall RobecoSAM 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 thispublication are the exclusive property of RobecoSAM and/or its related, affiliated and subsidiary companies.
38
Taiwan SemiconductorManufacturing Co LtdSEM Semiconductors & Semiconductor Equipment
INDUSTRY GROUP LEADER REPORT | 2013
Taiwan Semiconductor Manufacturing Co Best company within industryDJSI industry average
Company Description
Founded in 1987 and headquartered in Hsinchu, Taiwan, Taiwan Semiconductor Corp (TSMC) is the largest semiconductor foundry in the world. Thecompany does not market or distribute its products under its own brand name, but produces semiconductors on behalf of its customers. The companymaintains a wide customer base, and TSMC products are used in the computer, communications, consumer, industrial and other electronics marketsegments. The communications segment accounts for 50% of revenue alone. The company employs more than 37,000 people worldwide and offerscustomer services in North America, Europe, Japan, China South Korea and India. TSMC holds a very strong position in the manufacturing of 28-nanometer technology. As more designers are migrating to 28 nm technology, TSMC has increased production at an unprecedented pace, with athirty-fold increase of product shipments. The company’s performance was driven mainly by the growing demand for mobile IC products such astablets and smartphones. In 2012, TSMC achieved record revenue with consolidated revenues reaching NT$ 506.25 billion, an 18.5% increase fromNT$ 427.08 billion in 2011.
TSMC has been a member of the DJSI World for 13 consecutive years. Sustainability strategies and initiatives have been in place for many years atTSMC, and are incorporated in its long-term strategy. Over the last 10 years, the company has reduced its electricity consumption per wafer unit by47% and water consumption by 56%. This is especially relevant as its total wafer capacity has increased 4.8 times. In addition to operational initiatives,TSMC also demonstrates commitment to eco-efficiency by ensuring its products are geared towards reducing electricity consumption of end-productelectronic devices. To better carry out and coordinate sustainability efforts, the company founded the “Corporate Social Responsibility Committee” in2011, which brings together representatives from all of TSMC’s business segments. Since 2012, corporate social responsibility has been a topic on itsBoard meeting agenda and is regularly factored into the Board’s decision-making process. Annual CSR achievements are reported to the Board. TSMCrelies on its innovation capacity to further product efficiency. The company dedicates 8% of its revenue to R&D and employs 27.5% of its workforce inthe R&D department.
Sustainability Scores
Sustainability Performance
Total Scores
Economic Dimension Environmental Dimension Social Dimension
TaiwanCountry
Company
33,341No of Employees
www.tsmc.com.twWeb
2,605,788Market cap (million)
Share
TWDCurrency
116.50High 52 week
81.00Low 52 week
-Sales (million)
Key data
7.14EPS
14.07P/E Ratio
2012 2013E
499,872
6.42
15.65
COMPANY INFORMATION Source: Bloomberg / September 04, 2013
1 /
RobecoSAM AG - Josefstrasse 218 - 8005 Zürich - Switzerland - www.robecosam.com - Phone +41 44 653 10 30 - Fax +41 44 653 10 50 - [email protected]
1
Member of DJSI World, DJSI Emerging Markets
39
Company Performance for Selected Criteria
Economic Dimension
Product Quality and Recall Management Corporate Governance
Supply Chain Management Codes of Conduct/Compliance/Corruption&Bribery
Environmental Dimension
Water Related Risks Climate Strategy
Product Stewardship Operational Eco-Efficiency
Social Dimension
Social Reporting Labor Practice Indicators and Human Rights
Human Capital Development
For information on assessment criteria, visit www.sustainability-indices.com
DJSI industry averageTaiwan Semiconductor Manufacturing Co Best company within industry
Located at the beginning of the value chain, the semiconductor industry plays a critical role in the electronic sector. To ensure their long-term capacityto innovate, companies have to properly manage innovation processes and attract and retain a skilled workforce. High-quality research anddevelopment are important success factors, as shrinkage, migration to new materials and the introduction of more efficient production processesbecome dominant trends. Other challenges include energy-efficient production processes and low energy consumption chips and processors. Quality,performance and reliability must be monitored throughout the entire value chain. The semiconductor industry must also address the environmentalimpacts of its own operations by reducing the use of chemicals and hazardous substances, generating less waste, by enhancing the energy efficiency ofultra-clean spaces, and by reducing consumption of ultra-pure water. Considering the long lead time of capacity extensions, the semiconductorindustry's extreme cyclicality is forcing companies to pay close attention to strategic planning and business cycle management.
Industry Drivers
22 / Industry Group Leader Report - 2013
Disclaimer: For internal use only/Confidentiality: The information and opinions contained in this publication are for internal use only. This information is destined exclusively for internal use of the recipient. Any recipient shalltreat this document as confidential and shall under no circumstances disclose or transmit any part of this document, including but not limited to the Index Data, the Components of the Index and the related descriptions,weightings, etc. to any third party. Furthermore the publication of the information as a whole is strictly prohibited even after the final publication of the DJSI Index 2013. No Offer: The information and opinions contained in thispublication neither constitute an offer nor an invitation to make an offer to buy or sell any securities or any options, futures or other derivatives related to such securities. The information described in this publication is notdirected to persons in any jurisdiction where the provision of such information would run counter to local laws and regulation. No warranty: This information is derived from sources believed to be accurate and reliable, butneither its accuracy nor completeness is guaranteed. The material and information in this information is provided "as is" and without warranties of any kind, either expressed or implied. RobecoSAM and their related andaffiliated 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 thecurrent 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 thispublication. Limitation of liability: All information contained in this publication is distributed with the understanding that the authors, publishers and distributors are not rendering any legal, accounting or other professionaladvice or opinions on specific facts or matters and accordingly assume no liability whatsoever in connection with its use. In no event shall RobecoSAM 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 thispublication are the exclusive property of RobecoSAM and/or its related, affiliated and subsidiary companies.
40
SAP AG
SOF Software
INDUSTRY GROUP LEADER REPORT | 2013
SAP AG Best company within industryDJSI industry average
Company Description
With 248,000 customers in more than 180 countries, SAP is a leading global company in the enterprise software and software-related servicesbusiness. It is the third largest independent software manufacturer based on market cap. Founded in 1972 in Mannheim, Germany, SAP pioneeredproducts to optimize the internal operational efficiency of companies. The company employs over 65,500 people in over 130 countries. Today, SAPfaces new challenges arising from rapidly developing new technologies and seeks to focus on market categories such as applications, analytics, andmobile solutions as well as on new segments such as cloud solutions as well as databases and technology. Revenues are predominantly realized fromsoftware license sales and support. The 2012 fiscal year was a record year for SAP, where the company generated a total of EUR 16.3 billion inrevenues.
In 2012, SAP AG published its first Integrated Report, merging its financial reporting from its Annual Report with its sustainability reporting procedures.Such a move demonstrated SAP’s commitment to integrating sustainability into the entire company’s strategy and business model. The companyoffers software products designed to provide solutions to improve the operating efficiency of its customers, such as providing ways to track theiremissions and optimize resource usage. The company has also implemented internal efficiency measures that have contributed to a cumulative costavoidance of EUR 220 million. SAP places a strong emphasis on employee retention and talent recruitment to ensure long-lasting businessperformance. Strong efforts have been made to increase employee loyalty and increase employee engagement scores, after the company reported alarge drop in its employee loyalty metrics from 82% in 2006 to 69% in 2009 and 68% in 2010. As a social investment initiative, SAP has donatedsoftware to over 1,200 eligible nonprofit organizations and contributed more than 130,000 employee volunteer hours to young promisingentrepreneurs.
Sustainability Scores
Sustainability Performance
Total Scores
Economic Dimension Environmental Dimension Social Dimension
GermanyCountry
Company
64,937No of Employees
www.sap.comWeb
66,548Market cap (million)
Share
EURCurrency
65.00High 52 week
52.31Low 52 week
17,298Sales (million)
Key data
3.37EPS
16.06P/E Ratio
2012 2013E
16,223
3.03
17.88
COMPANY INFORMATION Source: Bloomberg / September 04, 2013
1 /
RobecoSAM AG - Josefstrasse 218 - 8005 Zürich - Switzerland - www.robecosam.com - Phone +41 44 653 10 30 - Fax +41 44 653 10 50 - [email protected]
1
Member of DJSI World, DJSI Europe
41
Company Performance for Selected Criteria
Economic Dimension
Privacy Protection Risk & Crisis Management
Corporate Governance IT Security
Environmental Dimension
Climate Strategy Environmental Policy/Management System
Environmental Reporting Operational Eco-Efficiency
Social Dimension
Human Capital Development Labor Practice Indicators and Human Rights
Talent Attraction & Retention Digital Inclusion
For information on assessment criteria, visit www.sustainability-indices.com
DJSI industry averageSAP AG Best company within industry
The software industry is characterized by a fast-paced market environment in which the speed of innovation represents a key success factor. Becauseinnovation is closely linked to human capital, effective human resource management is vital to attracting and retaining qualified staff. Openinnovation structures that include external developers and acquisition strategies are also important. Because software can help create more efficientbusiness processes and optimizes hardware utilization, enabling clients to improve their own eco-efficiency presents a long-term competitiveadvantage for software companies. In addition, companies must ensure data security, as a growing amount of confidential data is processed andstored in remote data centers. Given the ubiquity of software in daily life, innovative and differentiated distribution models are gaining importance.Widespread Internet access, for example, creates new opportunities in the area of "software as a service."
Industry Drivers
22 / Industry Group Leader Report - 2013
Disclaimer: For internal use only/Confidentiality: The information and opinions contained in this publication are for internal use only. This information is destined exclusively for internal use of the recipient. Any recipient shalltreat this document as confidential and shall under no circumstances disclose or transmit any part of this document, including but not limited to the Index Data, the Components of the Index and the related descriptions,weightings, etc. to any third party. Furthermore the publication of the information as a whole is strictly prohibited even after the final publication of the DJSI Index 2013. No Offer: The information and opinions contained in thispublication neither constitute an offer nor an invitation to make an offer to buy or sell any securities or any options, futures or other derivatives related to such securities. The information described in this publication is notdirected to persons in any jurisdiction where the provision of such information would run counter to local laws and regulation. No warranty: This information is derived from sources believed to be accurate and reliable, butneither its accuracy nor completeness is guaranteed. The material and information in this information is provided "as is" and without warranties of any kind, either expressed or implied. RobecoSAM and their related andaffiliated 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 thecurrent 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 thispublication. Limitation of liability: All information contained in this publication is distributed with the understanding that the authors, publishers and distributors are not rendering any legal, accounting or other professionaladvice or opinions on specific facts or matters and accordingly assume no liability whatsoever in connection with its use. In no event shall RobecoSAM 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 thispublication are the exclusive property of RobecoSAM and/or its related, affiliated and subsidiary companies.
42
Alcatel-Lucent
CMT Communications Equipment
INDUSTRY GROUP LEADER REPORT | 2013
Alcatel-Lucent Best company within industryDJSI industry average
Company Description
Alcatel-Lucent SA is a leading provider of networking and communications technology, products and services, and is headquartered in Paris, France.The company partners with service providers, enterprises, and governments, and is active in three business segments: networks, software solutionsand services, and enterprise. The networks segment provides optical networking equipment and wireless products and is organized into fourbusinesses - Internet protocol, optics, wireless, and wire line. The services and solutions area is engaged in supplying services for telecommunicationsservice providers as well as strategic industries such as the transportation, energy, and public sector. The enterprise segment delivers solutions to smallbusinesses as well as large companies for the purpose of improving interaction, conversation and collaboration across employees, partners, andcustomers. Alcatel-Lucent is renowned for its research and development efforts, and currently owns more than 30,700 active patents. Total grouprevenues amounted to EUR 14.4 billion in 2012.
Alcatel-Lucent and its research organization Bell Laboratories have consistently defined standards in eco-innovation in the information andcommunications technology (ICT) industry. Currently, 10% of the company’s patents are dedicated to green innovation. 2012 saw Alcatel-Lucentintroduce the Alcatel-Lucent Life Cycle Assessment (LCA) estimator, a tool that provides product carbon footprint information on new products,developed in conjunction with the iNEMI industry consortium. The company is actively involved in funding university collaborations for green research,and also works with other industry players through initiatives such as the GreenTouch Consortium, a global research endeavor to improve networkenergy efficiency, and the Centre for Energy-Efficient Telecommunications, a research center launched in 2011 by Alcatel-Lucent along with theUniversity of Melbourne and the Victorian State Government of Australia. The company's ability to leverage its ICT expertise to pursue sustainableinitiatives continues in the social sphere, where it is actively engaged with the French Development Bank in establishing mLearning (mobile learning)programs across African communities.
Sustainability Scores
Sustainability Performance
Total Scores
Economic Dimension Environmental Dimension Social Dimension
FranceCountry
Company
72,344No of Employees
www.alcatel-lucent.comWeb
5,183Market cap (million)
Share
EURCurrency
2.27High 52 week
.71Low 52 week
14,462Sales (million)
Key data
-.28EPS
-P/E Ratio
2012 2013E
14,446
-.14
-
COMPANY INFORMATION Source: Bloomberg / September 04, 2013
1 /
RobecoSAM AG - Josefstrasse 218 - 8005 Zürich - Switzerland - www.robecosam.com - Phone +41 44 653 10 30 - Fax +41 44 653 10 50 - [email protected]
1
Member of DJSI World, DJSI Europe
43
Company Performance for Selected Criteria
Economic Dimension
Privacy Protection Risk & Crisis Management
Corporate Governance Codes of Conduct/Compliance/Corruption&Bribery
Environmental Dimension
Climate Strategy Environmental Policy/Management System
Product Stewardship Hazardous Substances
Social Dimension
Human Capital Development Labor Practice Indicators and Human Rights
Talent Attraction & Retention Digital Inclusion
For information on assessment criteria, visit www.sustainability-indices.com
DJSI industry averageAlcatel-Lucent Best company within industry
Constant innovation and a strong intellectual property portfolio are crucial for companies in the communications equipment industry. The quickadoption of new "smart" mobile devices with short product life cycles has heightened competition among manufacturers and providers ofcommunication equipment. In addition, mass production of such devices and the increased total energy consumption during their use have sharpenedthe focus on the environmental performance of devices and equipment over the product’s life cycle. Product design must consider the productioninputs, energy efficiency during use, and disposal options. Take-back programs, greater modularity, and extended producer responsibility arebecoming increasingly relevant. Electromagnetic radiation must also be considered in mobile communication devices and equipment. Environmentaland social standards for suppliers are key factors as a large share of production is outsourced to emerging economies. Finally, the development anduse of certain technologies to monitor communication raises questions related to potential violations of the human right to freedom of expression andprivacy. As a result, the industry must demonstrate clear standards reflecting its commitment to human rights.
Industry Drivers
22 / Industry Group Leader Report - 2013
Disclaimer: For internal use only/Confidentiality: The information and opinions contained in this publication are for internal use only. This information is destined exclusively for internal use of the recipient. Any recipient shalltreat this document as confidential and shall under no circumstances disclose or transmit any part of this document, including but not limited to the Index Data, the Components of the Index and the related descriptions,weightings, etc. to any third party. Furthermore the publication of the information as a whole is strictly prohibited even after the final publication of the DJSI Index 2013. No Offer: The information and opinions contained in thispublication neither constitute an offer nor an invitation to make an offer to buy or sell any securities or any options, futures or other derivatives related to such securities. The information described in this publication is notdirected to persons in any jurisdiction where the provision of such information would run counter to local laws and regulation. No warranty: This information is derived from sources believed to be accurate and reliable, butneither its accuracy nor completeness is guaranteed. The material and information in this information is provided "as is" and without warranties of any kind, either expressed or implied. RobecoSAM and their related andaffiliated 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 thecurrent 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 thispublication. Limitation of liability: All information contained in this publication is distributed with the understanding that the authors, publishers and distributors are not rendering any legal, accounting or other professionaladvice or opinions on specific facts or matters and accordingly assume no liability whatsoever in connection with its use. In no event shall RobecoSAM 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 thispublication are the exclusive property of RobecoSAM and/or its related, affiliated and subsidiary companies.
44
KT Corp
TLS Telecommunication Services
INDUSTRY GROUP LEADER REPORT | 2013
KT Corp Best company within industryDJSI industry average
Company Description
Originally founded as the Korea Telecommunication Association in 1981, KT Corp is a South Korean integrated wired and wireless telecommunicationsservice provider. It offers a wide array of communication services such as mobile and fixed line telecommunication, broadband Internet access,Internet protocol television, leased line, data communication, and network services using asymmetric digital subscriber lines. Its telephone servicesinclude local, domestic, and international long-distance fixed-line, VoIP telephone services, and interconnection services to other telecommunicationcompanies. Further, it provides credit card business, information technology, and network services such as cloud computing services. In 2009, KT Corpmerged with KTF - Korea Telecom Freetel - to expand and consolidate its activities in the fixed/mobile business. 2012 saw the company generate totalrevenues of KRW 20.2 trillion.
KT Corp has emerged as a sustainability leader in ICT across all three areas: economic, environmental, and social. In 2012, the company leveraged itsinnovation-based business model to develop a Total Operation Center, an industrial technology solution that relies on the Korean Micro Energy Grid tooffer its clients complete energy management and efficient resource usage through remote centralized services for complexes and multifunctionalfacilities. KT Corp is also actively involved in the social sphere, developing initiatives aimed at increasing digital inclusion in the education space. Thecompany provides technological solutions to child care centers and has developed an IT sharing strategy aimed at training underdevelopedcommunities via certification courses in computer and practical IT skills. It also continues to grant financial aid to low-income university studentsstudying in IT-related fields, and offered 290 such scholarships in 2012.
Sustainability Scores
Sustainability Performance
Total Scores
Economic Dimension Environmental Dimension Social Dimension
Republic of KoreaCountry
Company
31,310No of Employees
www.kt.co.krWeb
9,517,525Market cap (million)
Share
KRWCurrency
41,250.00High 52 week
33,750.00Low 52 week
24,290,300Sales (million)
Key data
3,684.55EPS
9.89P/E Ratio
2012 2013E
18,863,237
2,754.00
13.24
COMPANY INFORMATION Source: Bloomberg / September 04, 2013
1 /
RobecoSAM AG - Josefstrasse 218 - 8005 Zürich - Switzerland - www.robecosam.com - Phone +41 44 653 10 30 - Fax +41 44 653 10 50 - [email protected]
1
Member of DJSI World, DJSI Asia Pacific, DJSI Korea
45
Company Performance for Selected Criteria
Economic Dimension
Customer Relationship Management Risk & Crisis Management
Corporate Governance Privacy Protection
Environmental Dimension
Climate Strategy Electro Magnetic Fields
Environmental Reporting Operational Eco-Efficiency
Social Dimension
Impact of Telecommunication Services Labor Practice Indicators and Human Rights
Talent Attraction & Retention Digital Inclusion
For information on assessment criteria, visit www.sustainability-indices.com
DJSI industry averageKT Corp Best company within industry
The telecommunications services industry operates in a highly competitive environment characterized by continuously accelerated demand forpremium services in fixed-line and mobile communications. The industry has a large and indirect impact on the productivity and competitiveness ofentire economies, and can significantly improve work habits and lifestyles. Further, telecommunications firms can leverage their technologicalexpertise to produce innovative solutions that address social and environmental sustainability issues faced by consumers on both local and globalscales. Consumers, businesses and governments increasingly require uninterrupted high-quality, high-speed connections, and higher trafficallowances. In order to remain competitive in a market subject to rapid technological change, companies will need to adopt flexible business modelsthat enable them to integrate new-generation technologies and services. The careful handling of data is essential, as insufficient database andnetwork protection could expose companies to reputational and liability risks. Energy efficiency and state-of-the-art infrastructure remain the industry'skey environmental challenges.
Industry Drivers
22 / Industry Group Leader Report - 2013
Disclaimer: For internal use only/Confidentiality: The information and opinions contained in this publication are for internal use only. This information is destined exclusively for internal use of the recipient. Any recipient shalltreat this document as confidential and shall under no circumstances disclose or transmit any part of this document, including but not limited to the Index Data, the Components of the Index and the related descriptions,weightings, etc. to any third party. Furthermore the publication of the information as a whole is strictly prohibited even after the final publication of the DJSI Index 2013. No Offer: The information and opinions contained in thispublication neither constitute an offer nor an invitation to make an offer to buy or sell any securities or any options, futures or other derivatives related to such securities. The information described in this publication is notdirected to persons in any jurisdiction where the provision of such information would run counter to local laws and regulation. No warranty: This information is derived from sources believed to be accurate and reliable, butneither its accuracy nor completeness is guaranteed. The material and information in this information is provided "as is" and without warranties of any kind, either expressed or implied. RobecoSAM and their related andaffiliated 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 thecurrent 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 thispublication. Limitation of liability: All information contained in this publication is distributed with the understanding that the authors, publishers and distributors are not rendering any legal, accounting or other professionaladvice or opinions on specific facts or matters and accordingly assume no liability whatsoever in connection with its use. In no event shall RobecoSAM 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 thispublication are the exclusive property of RobecoSAM and/or its related, affiliated and subsidiary companies.
46
Air France-KLM
AIR Airlines
INDUSTRY GROUP LEADER REPORT | 2013
Air France-KLM Best company within industryDJSI industry average
Company Description
Air-France KLM is a leading global airline group. Formed through the merger of Air France and KLM in 2004, the company’s strategic focus lies in threemain areas: Passengers, Cargo and Aeronautical Maintenance. In 2012, the company carried over 77 million passengers to 253 destinationsworldwide, offering the most extensive route network between Europe and the rest of the world. In 2012, the company launched its three-yeartransformation plan to increase profitability while focusing on its core strengths such as customer service and route development. Sustainability haslong been recognized as a key differentiator for the company, and sustainable development forms a core pillar of its Transform 2015 strategy.Creating economic, environmental and social value remains at the center of the company’s business.
Air France-KLM continues to defend its position as a sustainability leader in the transportation space. As part of its overall business strategy, thecompany has made long-term commitments to reducing its environmental footprint and increasing operational efficiency. Compared to a 2009baseline, the company made significant improvements in operational eco-efficiency in 2012. As a pioneer in the development of sustainable biofuels,the company continues to push for viable alternatives to traditional fossil fuels. The company actively manages its stakeholder engagement, ensuringthat corporate goals are effectively rolled out and managed at the local level. Through transparent and focused reporting, the company addressesmultiple stakeholder needs, and closely outlines not only the progress, but also the challenges faced in achieving its sustainable business goals.
Sustainability Scores
Sustainability Performance
Total Scores
Economic Dimension Environmental Dimension Social Dimension
FranceCountry
Company
98,292No of Employees
www.airfrance.comWeb
1,652Market cap (million)
Share
EURCurrency
8.95High 52 week
3.97Low 52 week
26,101Sales (million)
Key data
-.65EPS
-P/E Ratio
2012 2013E
25,633
-.95
-
COMPANY INFORMATION Source: Bloomberg / September 04, 2013
1 /
RobecoSAM AG - Josefstrasse 218 - 8005 Zürich - Switzerland - www.robecosam.com - Phone +41 44 653 10 30 - Fax +41 44 653 10 50 - [email protected]
1
Member of DJSI World, DJSI Europe
47
Company Performance for Selected Criteria
Economic Dimension
Risk & Crisis Management Fleet Management
Corporate Governance Codes of Conduct/Compliance/Corruption&Bribery
Environmental Dimension
Environmental Policy/Management System Environmental Reporting
Operational Eco-Efficiency
Social Dimension
Talent Attraction & Retention Labor Practice Indicators and Human Rights
Social Reporting Human Capital Development
For information on assessment criteria, visit www.sustainability-indices.com
DJSI industry averageAir France-KLM Best company within industry
Commercial airlines continue to face a competitive and challenging environment. Rising fuel costs combined with fierce competition from low-cost andultra-low-cost carriers are forcing airlines to rethink their business plans and adapt their long-term growth strategies. Consolidation continuesthroughout the industry, and new route-sharing partnerships help create economies of scale and reduce operating costs. The EU Emissions TradingScheme, originally scheduled to be implemented in January 2013, has been put on hold, giving the UN’s International Civil Airline Authority (ICAO) ayear to develop a global alternative. If no solution is found, the EU has vowed to move ahead as planned, applying the legislation to allintercontinental flights to and from the European Union, providing an additional financial incentive to improve operational eco-efficiency. Althoughairlines have made significant strides in improving fuel efficiency and investments in the latest generation aircraft remain strong, further cooperationbetween the private and public sectors is needed to meet the 2020 goal of neutralizing net CO2 emission growth. This includes increasing cooperationon the development of alternative fuels and the implementation of advanced route planning systems and navigation technologies.
Industry Drivers
22 / Industry Group Leader Report - 2013
Disclaimer: For internal use only/Confidentiality: The information and opinions contained in this publication are for internal use only. This information is destined exclusively for internal use of the recipient. Any recipient shalltreat this document as confidential and shall under no circumstances disclose or transmit any part of this document, including but not limited to the Index Data, the Components of the Index and the related descriptions,weightings, etc. to any third party. Furthermore the publication of the information as a whole is strictly prohibited even after the final publication of the DJSI Index 2013. No Offer: The information and opinions contained in thispublication neither constitute an offer nor an invitation to make an offer to buy or sell any securities or any options, futures or other derivatives related to such securities. The information described in this publication is notdirected to persons in any jurisdiction where the provision of such information would run counter to local laws and regulation. No warranty: This information is derived from sources believed to be accurate and reliable, butneither its accuracy nor completeness is guaranteed. The material and information in this information is provided "as is" and without warranties of any kind, either expressed or implied. RobecoSAM and their related andaffiliated 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 thecurrent 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 thispublication. Limitation of liability: All information contained in this publication is distributed with the understanding that the authors, publishers and distributors are not rendering any legal, accounting or other professionaladvice or opinions on specific facts or matters and accordingly assume no liability whatsoever in connection with its use. In no event shall RobecoSAM 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 thispublication are the exclusive property of RobecoSAM and/or its related, affiliated and subsidiary companies.
48
EDP - Energias de Portugal SA
ELC Electric Utilities
INDUSTRY GROUP LEADER REPORT | 2013
EDP - Energias de Portugal SA Best company within industryDJSI industry average
Company Description
EDP is among the largest European energy operators, providing electricity to both Portugal and Spain. In addition to these operations, EDP – togetherwith its subsidiary EDP Renovaveis – is also the world’s third largest wind power operator. It is one of the largest gas distributors in the IberianPeninsula and also has electricity generation, distribution and supply activities in Brazil. The company has an installed capacity of 23.4 GW, whichgenerated 54.7 TWh in 2012. Out of its total capacity, 34% comes from thermal sources, 32% is wind energy and 32% comes from hydro powerplants. The company has market presence in 13 countries, with 9.8 million customers and employs over 12,000 people around the world. It wasfounded in 1976 and is headquartered in Lisbon, Portugal. EDP generated EUR 16.3 billion in revenues in 2012.
EDP has a long history of sustainability initiatives, and has over the years adopted a proactive approach to addressing environmental issues. In 1994,the company adopted its first Environmental Policy, and published its first Environment Report in 1997. Sustainability is a transversal theme in thegroup’s business management. As part of its commitment to lowering greenhouse gas emissions, EDP has increasingly diversified its generation mix toincorporate renewable energies. Their share in the generation mix rose from 20% in 2005 to 60% in 2012. In 2007, EDP also committed to aBiodiversity Policy that contributes to reducing biodiversity impacts from company activities. On the group level, EDP developed an internalsustainability index based on the RobecoSAM Corporate Sustainability Assessment in 2008, which aims to monitor and evaluate its sustainabilityperformance. This “EDP Sustainability Index” is modified to match the company’s business model more adequately, is calculated quarterly and servesas a reference tool for the managing its sustainability strategy.
Sustainability Scores
Sustainability Performance
Total Scores
Economic Dimension Environmental Dimension Social Dimension
PortugalCountry
Company
12,244No of Employees
www.edp.ptWeb
9,810Market cap (million)
Share
EURCurrency
2.74High 52 week
1.90Low 52 week
15,726Sales (million)
Key data
.27EPS
10.09P/E Ratio
2012 2013E
16,340
.28
9.69
COMPANY INFORMATION Source: Bloomberg / September 04, 2013
1 /
RobecoSAM AG - Josefstrasse 218 - 8005 Zürich - Switzerland - www.robecosam.com - Phone +41 44 653 10 30 - Fax +41 44 653 10 50 - [email protected]
1
Member of DJSI World, DJSI Europe
49
Company Performance for Selected Criteria
Economic Dimension
Market Opportunities Risk & Crisis Management
Corporate Governance Codes of Conduct/Compliance/Corruption&Bribery
Environmental Dimension
Electricity Generation Climate Strategy
Environmental Reporting Transmission & Distribution
Social Dimension
Human Capital Development Labor Practice Indicators and Human Rights
Talent Attraction & Retention Occupational Health and Safety
For information on assessment criteria, visit www.sustainability-indices.com
DJSI industry averageEDP - Energias de Portugal SA Best company within industry
The rapid development of renewables in Western markets within the last few years is beginning to have a considerable impact on energy markets.Companies must deal with the integration of these new sources into the energy mix, their subsequent impact on electricity prices and the increasinglyintermittent use of the thermal plants within the context of weak electricity demand. Enormous efforts are also required to develop and replace anaging grid. Moreover, infrastructure developments must factor in stakeholders’ concerns, which can delay the progress of a project. The austeritymeasures brought about by the financial crisis will also make it more important for companies to offer their clients efficiency enhancements andopportunities to cut their energy consumption while generating additional revenues. In emerging markets, industrialization and urbanization imply ahuge need for additional generation capacity.
Industry Drivers
22 / Industry Group Leader Report - 2013
Disclaimer: For internal use only/Confidentiality: The information and opinions contained in this publication are for internal use only. This information is destined exclusively for internal use of the recipient. Any recipient shalltreat this document as confidential and shall under no circumstances disclose or transmit any part of this document, including but not limited to the Index Data, the Components of the Index and the related descriptions,weightings, etc. to any third party. Furthermore the publication of the information as a whole is strictly prohibited even after the final publication of the DJSI Index 2013. No Offer: The information and opinions contained in thispublication neither constitute an offer nor an invitation to make an offer to buy or sell any securities or any options, futures or other derivatives related to such securities. The information described in this publication is notdirected to persons in any jurisdiction where the provision of such information would run counter to local laws and regulation. No warranty: This information is derived from sources believed to be accurate and reliable, butneither its accuracy nor completeness is guaranteed. The material and information in this information is provided "as is" and without warranties of any kind, either expressed or implied. RobecoSAM and their related andaffiliated 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 thecurrent 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 thispublication. Limitation of liability: All information contained in this publication is distributed with the understanding that the authors, publishers and distributors are not rendering any legal, accounting or other professionaladvice or opinions on specific facts or matters and accordingly assume no liability whatsoever in connection with its use. In no event shall RobecoSAM 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 thispublication are the exclusive property of RobecoSAM and/or its related, affiliated and subsidiary companies.