matter · 2020. 6. 3. · solvay sa chevron corporation rwe aktiengesellschaf t heidelbergcement ag...

18.12.2019 Front

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Portfoliosustainability

analysis

Matter

18.12.2019 Radar_Chart

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• The plot to the left compares each of the sustainability parameters to

the average of that of the benchmark portfolio(s). • The scores range from 0 to 2.5 for all topics. Each successive ring is an

increment of 0.5. • Score = 1: The portfolio performs on par with the average of the benchmark

indices.• Score = 2.5: The portfolio performs at least two-and-a-half times as well as the

average of the benchmark indices.• Score < 1: The portfolio performs 1/score worse than the average of the

benchmark indices. E.g. if the score is 0.25: The portfolio performs four times

worse than the average of the benchmark indices.

Overall comparison between portfolio(s) and benchmark average

Controversial companies

Beneficial companies

Carbon scope 1+2 emissions

Fossil fuel reserves emissionsWaste generation

Water use

Renewable power generation

1 2.5 D_EQ D_CORP

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18.12.2019 Matter

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Matter is a Danish fintech startup founded in 2017. We specialise in sustainable investments and have launched a sustainable pension product in Denmark in collaborationwith Skandia in October 2018. Our team consists of people with diverse experience from the United Nations, asset management, management consulting and software development.

Drawing upon wisdom-of-the-crowd inspired sustainability information and machine learning, we have developed automated tools to screen entire investment portfolios of listed assets on a range of sustainability criteria that can be utilized by pioneering investors wishing to create sustainable and impact-oriented portfolios. The portfolio sustainability tools enable the qualification of ESG strategies with concrete allocation targets – with respect to exclusion of controversial companies, reduction of the portfolio’s CO2 impact, inclusion of additional beneficial investments and more.Sustainability metrics constitute a new dimension to traditional financial reporting that is here to stay.

Who we are Portfolio Sustainability Analytics

Matter

2

18.12.2019 Benchmarking

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MSCI World

Bloomberg Barclays Global Aggregate Bond CORP

D_EQ

D_CORP

Selected portfolios Selected Benchmarks

This analysis looks into the sustainability profile of the selected portflio(s) and compares the results to the selected benchmark(s). Both selected portfolio(s) and benchmark(s) are shown to the left.

Throughout the report, the portfolio(s) is compared to the selected benchmark(s) for all metrics. Note that the presentation contains comparisons only, and the numbers should thus not be interpreted as general sustainability ratings.

Benchmarking

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18.12.2019 Metrics-1

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Included metrics (1/2)

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Carbon emissions (Scope 1+2)

Total reserves CO2 emissions (Oil, coal and gas)

Water use (Direct and purchased)

Waste generation (Landfill and incineration)

Renewable power generation (Wind, solar, hydro, geothermal and wave/tidal)

Impact metrics Controversial corp. topics Beneficial corp. topics Controversial sov. topics

The topics are based on more than 50 well renowned sources

Adult entertainmentAlcohol

Business ethics violationsCorrectional facilities

CorruptionDefense & weapons

Environmental damage & disastersEthical norms violationsExtreme executive pay

Fossil fuelsGambling

GMOHigh GHG emissions

Human & labor rights violationsIsraeli settlementsMeat production

NuclearPork

Stem cellsTax avoidance

Tobacco

Best in class (among peers)

Business ethics pioneers

Diversity & inclusion pioneers

Environmental protection

Great work environment

Green energy production

Low GHG emissions

Health & safety pioneers

Human & labor rights pioneers

High fossil fuels exportsChild labor

Conventional weapons exportFinancial secrecy

Low share of women in national parliamentPolitical rights

Voice and accountabilityPress freedom

Rule of lawAuthoritarian state

Civil libertiesCorruption

Government effectivenessPeace

Not free statePolitical stability - no violence

Regulatory qualitySanctionsSlavery

Tax haven

Included metrics (2/2)

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18.12.2019 Holdings

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D_EQ D_CORP MSCI World Bloomberg Barclays Global Agg…

606

1756 1646

3076


96,6% 99,6% 99,7% 93,2%

• The matching percentage is the share of the given portfolio which is matched in Matter’s database. • A match can be obtained through ISIN or name matching.

• The figure to the left is the number of underlying securities that we have been able to resolve to their issuer, in the analysed equity portfolio and the selected benchmark indices.

Numberof holdings

Matchedpercentage

Number of holdings and matching percentage

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554

1745 16392902Matched

holdings

18.12.2019 Sector

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0% 20% 40% 60% 80% 100%

D_EQ

D_CORP

MSCI World

Bloomberg Barclays Global Ag…

10,9%

9,6%

12,7%

7,7%

33,2%

5,0%

8,1%

5,6% 5,4%

3,7%

4,6%

6,4%

12,1%

46,7%

16,1%

34,2%

11,1%

4,6%

11,7%

6,0%

10,4%

6,3%

11,4%

9,6%

9,6%

3,9%

19,6%

4,9%

4,5%

4,0%

4,9%

3,7%

5,4%

3,2%

4,7%

4,4%

4,2%

3,7%

7,6%

Sector Consumer Discretion… Consumer Staples Data Unavailable Energy Financials Health Care Industrials Information Techn… Materials Real Estate Sovereign State Telecommunicati… Utilities

Sector allocation

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18.12.2019 Regional

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0% 20% 40% 60% 80% 100%

D_EQ

D_CORP

MSCI World

Bloomberg Barclays Global Ag…

5,4%

12,2%

13,4%

46,5%

12,9%

64,6%

52,7%

52,8%

81,5%

22,9%

30,8%

Region Africa / Middle East Asia Pacific Central Asia Eastern Europe North America South & Central America Western Europe

Regional allocation

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18.12.2019 Carbon_Scope

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• This graph compares the portfolios’ carbon scope

1+2 emissions.

• For more information as to the scope of the

carbon emissions measurement, please refer to the

Appendix.

D_EQ D_CORP MSCI World Bloomberg Barclays GlobalAggregate Bond CORP

34

128

76

137

CRH plc

Exxon Mobil Corporation

Nestlé S.A.

Solvay SA

Chevron Corporation

RWE Aktiengesellschaft

HeidelbergCement AG

LafargeHolcim Ltd

Veolia Environnement S.A.

Eni S.p.A.



ArcelorMittal

LafargeHolcim Ltd

The Southern Company


ArcelorMittal

Enel SpA

Metalurgica Gerdau S.A.

Duke Energy Corporation

• There is usually large differences between

carbon emissions of portfolio companies

• To the left the top 5 companies with highest

carbon emission impact on the portfolio are

listed.

• A company’s portfolio impact depends both on

i) the total emissions of the company, ii) the size

of the company and iii) the portfolio’s weight of

that company.

• This is useful when determining how to change

a portfolios environmental profile; obtaining

lower portfolio CO2 emissions can, for example,

be done through less ownership of the

companies with highest emission impact.

Carbon scope 1 + 2 emissions

Portfoliocarbon

emissions

Carbon: 1+2 (tonnes CO2e)

per m€

Companies with largest

carbon emission

impact per portfolio

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18.12.2019 Reserves

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219

1076

15141616


Chevron Corporation

ConocoPhillips

Occidental Petroleum Corporation

Noble Energy, Inc.

TOTAL S.A.

Eni S.p.A.

Anglo American plc

OMV Aktiengesellschaft

Origin Energy Limited


BP p.l.c.

Chevron Corporation

BHP Group

Glencore plc

BP p.l.c.

Cenovus Energy Inc.

Anglo American plc

Glencore plc

Canadian Natural Resources Limited

Portfolioreserves

CO2emissions

Total reserves CO2 emissions

(tonnes) per m€


reserves CO2 emission

impact per portfolio

• Reserves CO2 emissions represents the amount of

potential or future CO2 emissions owned through

the portfolio.

• The figure to the left is an overview of the

CO2 emissions reserves of the different portfolios

and benchmark indices.

• There are usually large differences between

reserves carbon emissions of portfolio

companies.


reserves carbon emission impact on the

portfolio are listed.

• A company’s portfolio impact depends both on

i) the total emissions of the company, ii) the size

of the company and iii) the portfolio’s weight of

that company.

• This is useful when determining how to change

a portfolios environmental profile; obtaining

lower portfolio reserves CO2 emissions can, for

example, be done through less ownership of the

companies with highest emission impact

Oil, coal and gas reserves CO2 emissions

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18.12.2019 Waste

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1,7

5,4

3,33,9

Essity AB (publ)

Boliden AB (publ)

Solvay SA

Voestalpine AG

CRH plc



Solvay SA

LANXESS Aktiengesellschaft

Eni S.p.A.


South32 Limited


BHP Group

Sumitomo Metal Mining Co., Ltd.



BHP Group

Industrias Peñoles, S.A.B. de C.V.

The AES Corporation

PortfolioWaste

generation

Waste: landfill & incineration

(tonnes) per m€


waste generation impact per

portfolio

• This graph compares the portfolios’ waste (landfill &

incineration) generation

• Recycled waste and nuclear waste is not included

• There is usually large differences between waste

generation of portfolio companies

• To the left the top 5 companies with highest waste

generation impact on the portfolio are listed.

• A company’s portfolio impact depends both on i)

the total waste generation of the company, ii) the

size of the company and iii) the portfolio’s weight

of that company

• This is useful when determining how to change a

portfolios environmental profile; obtaining lower

portfolio waste generation can, for example, be

done through less ownership of the companies

with highest waste generation impact

Waste generation

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18.12.2019 Water

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2084

9041

6669

16811• This graph compares the portfolios' water usage

Exelon Corporation

Suez SA

Dominion Energy, Inc.

ublic Service Enterprise Group Incorporated

Associated British Foods plc


Suez SA

SSE plc

Iren SpA


Exelon Corporation

SSE plc

Enel SpA


ENGIE SA

Exelon Corporation

Electricité de France S.A.

SSE plc

Enel SpA

ENGIE SA

PortfolioWaterusage

Water: direct & purchased

(cubic metre) per m€


water usage impact per

portfolio

• There is usually large differences between water

usage of portfolio companies

• To the left the top 5 companies with highest water

usage impact on the portfolio are listed.


the total emissions of the company, ii) the size of

the company and iii) the portfolio’s weight of that

company


portfolios environmental profile; obtaining lower

portfolio water usage can, for example, be done

through less ownership of the companies with

highest water usage impact

Water usage

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18.12.2019 Renewables

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2,6

10,4

8,5

15,0

VERBUND AG

Orkla ASA

NextEra Energy, Inc.

Xcel Energy Inc.




SSE plc

Iren SpA



Enel SpA


Iberdrola, S.A.

E.ON SE


Enel SpA


ENGIE SA

E.ON SE

Companies with largest renewable

energy generation impact per

portfolio

Renewable energy:

wind, solar,hydroelectric,geothermal,wave & tidal

(MWh) per m€

PortfolioRenewable

energygeneration

• The renewable energy category contains wind,

solar, geothermal, hydroelectric and

wave & tidal

• There are usually large differences between

renewable energy generation of portfolio

companies


renewable energy generation impact on the

portfolio are listed.


the total renewable energy generation of the

company, ii) the size of the company and iii) the

portfolio’s weight of that company


portfolios environmental profile; obtaining higher

portfolio renewable energy generation can, for

example, be done through increased ownership of

the companies with highest renewable energy

generation impact

Renewable energy generation

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18.12.2019 Heat_Map

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Entity.sector

D_EQ

D_CORP

MSCI World


Utilities 307,50 1.317,37 706,28 862,28

• The heatmaps seen to the left represent

a sector breakdown of the portfolios’

carbon (scope 1+2) figures shown

previously.

• The numbers represent the carbon

emissions per portfolio within each sector,

if that sector was to constitute the full

portfolio. If the number is 0, the given

portfolio doesn't hold any companies

within that particular sector.

• As a portfolio consisting solely of e.g.

financials or IT companies will almost

always carry lower carbon emissions than

a portfolio containing only e.g. energy or

materials companies, this analysis is

valuable to determine how the portfolios

and benchmarks fare per sector. For

example, if a portfolio has higher

Materials carbon emissions compared to

the benchmarks, the portfolio holds

relatively high-emitting Materials

companies compared to the benchmarks.

• A breakdown like the one shown here

can be made for all of the environmental

metrics

Carbon scope 1+2 emissions per sector

Entity.sector

D_EQ

D_CORP

MSCI World


Industrials 44,43 61,13 68,96 84,24

Entity.sector

D_EQ

D_CORP

MSCI World


Materials 195,45 1.114,21 369,42 878,35

Entity.sector

D_EQ

D_CORP

MSCI World


Energy 292,94 412,73 320,23 313,66

Entity.sector

D_EQ

D_CORP

MSCI World


Consumer Discretionary 18,13 46,67 25,32 61,94

Entity.sector

D_EQ

D_CORP

MSCI World


Information Technology 3,63 7,33 7,46 7,93

Entity.sector

D_EQ

D_CORP

MSCI World


Consumer Staples 23,36 26,98 31,00 50,05

Entity.sector

D_EQ

D_CORP

MSCI World


Financials 1,70 1,10 2,38 1,32

Entity.sector

D_EQ

D_CORP

MSCI World


Health Care 4,75 7,99 6,64 8,74

Entity.sector

D_EQ

D_CORP

MSCI World


Real Estate 11,36 5,59 9,94 72,83

Entity.sector

D_EQ

D_CORP

MSCI World


Telecommunication Services 15,67 28,50 17,65 25,53

Matter

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18.12.2019 Controversial

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D_EQ

D_CORP

MSCI World

Bloomberg Barclays …

87

38

306

197

D_EQ

D_CORP

MSCI World

Bloomberg Barclays Global Aggregate B…

12 %

10 %

21 %

20 %

D_EQ

D_CORP

MSCI World

Bloomberg Barclays Global Aggregate B…

48 %

22 %

47 %

37 %

Significantcontroversial

corporateflags

Allcontroversial

corporateflags

• The statistics to the left capture all

companies in the portfolios which are

flagged withone or more of the

following topics: defense & weapons,

fossil fuels, environmental damage,

tobacco, human/labor rights violations

and corruption

• The statistics to the left capture all

companies in the portfolios which are

flagged with any controversial corporate

flag; these can all be seen on the intro

pages.

Number of companiesShare of portfolio

Aggregated statistics of controversial corporate flags

D_EQ

D_CORP

MSCI World

Bloomberg Barclays …

195

86

556

317

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18.12.2019 Controversial_Shares

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Corruption

Defense & weapons

Environmental damage & disasters

Fossil fuels

Human & labor rights violations

Tobacco

0,0 %

0,4 %

1,0 %

5,2 %

5,6 %

2,4 %

0,0 %

0,7 %

0,6 %

7,4 %

1,5 %

0,1 %

0,2 %

3,2 %

3,9 %

10,9 %

7,5 %

1,1 %

0,5 %

1,4 %

4,3 %

13,7 %

5,3 %

0,9 %

Portfolio D_EQ D_CORP MSCI World Bloomberg Barclays Global Aggregate Bond CORP

Share of portfolio

Portfolio shares per significant controversial corporate flag

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18.12.2019 Beneficial

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D_EQ

D_CORP

MSCI World

Bloomberg Barclays Global Aggregate …

77

55

187

132

D_EQ

D_CORP

MSCI World


32 %

19 %

21 %

17 %

D_EQ

D_CORP

MSCI World


112

80

266

174

Significantbeneficialcorporate

flags

Allbeneficialcorporate

flags• The statistics to the left capture all companies in the

portfolios which are flagged with any beneficial

corporate flag; these can all be seen on the intro

pages.

• The statistics to the left capture all companies in

the portfolios which are flagged with one or

more of the following beneficial topics: diversity &

inclusion pioneers, environmental protection,

green energy production and human/labor rights

pioneers.

Share of portfolio Number of companies

Aggregated statistics of beneficial corporate flags

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D_EQ

D_CORP

MSCI World


40 %

28 %

30 %

24 %

18.12.2019 Beneficial_Shares

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Diversity & inclusion pioneers

Environmental protection

Green energy production

Human & labor rights pioneers

23,8 %

0,4 %

4,1 %

9,5 %

15,4 %

0,0 %

3,1 %

1,3 %

13,8 %

0,4 %

5,8 %

4,5 %

10,1 %

0,2 %

6,8 %

1,4 %

Portfolio D_EQ D_CORP MSCI World Bloomberg Barclays Global Aggregate Bond CORP

Share of portfolio

Portfolio shares per significant beneficial corporate flag

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18.12.2019 End

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Appendix

Matter

Matter

2

Controversial sovereigns

Controversial sovereign flags

Authoritarian state

Child labor Civil libertiesGovernment effectiveness

Not free state Political rightsPolitical

stability - no violence

Regulatory quality

Rule of law SanctionsState

corruptionVoice and

accountabilityD Sov E Sov S Sov R Sov BBGABS

China x x x x x x x

Kazakhstan x x x x

Kuwait x x

Mexico x x x x x

Thailand x x x x x

Peru x x x x x

Philippines x x x

Qatar x x x x

Russia x x x x x x x x

Saudi Arabia x x x x x x

• The portfolios hold relatively few controversial sovereigns (5: Mexico, Thailand, Peru, Philippines and Russia), compared to the benchmark. Which holds 10 unique controversial sovereigns

• BBGABS: Bloomberg Barclays Global Aggregate Bond (sovereigns)

18.12.2019 Appendix-Definitions-1

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Trucost data and estimates Calculations are based on Trucost Eboard data. The data samples employed are either reported by portfolio companies or estimated based on either prior emissions data or industry and peer performance. We calculate the carbon footprint for both equities and corporate bonds, but do not have data available on government bonds. Carbon Scope 1 (tonnes CO2e)Greenhouse gas emissions generated from burning fossil fuels and production processes which are owned or controlled by the company (reference: GHG Protocol). Carbon Scope 2 (tonnes CO2e)Greenhouse gas emissions from consumption of purchased electricity, heat or steam by the company (reference: GHG Protocol). Carbon Scope 3 (tonnes CO2e)Other indirect Greenhouse gas emissions, such as from the extraction and production of purchased materials and fuels, transport-related activities in vehicles not owned or controlled by the reporting entity, electricity-related activities (e.g. T&D losses) not covered in Scope 2, outsourced activities, waste disposal, etc. (in line with GHG Protocol standards) (reference: GHG Protocol).

CO2 Equivalent (CO2e)Each greenhouse gas differs in its ability to absorb heat in the atmosphere. Calculations of greenhouse gas emissions are presented in units of millions of metric tons of carbon equivalents (MMTCE), which weights each gas by its GWP value, or Global Warming Potential. The Global Warming Potentials used in this analysis are:

CO2 equivalent1

25 22,8 298

7850 2400

Greenhouse gas• Carbon Dioxide• Methane• Sulphur Hexaflouride• Nitrus Oxide• Per Fluoro Carbons• Hydro Flouro Carbons

Definitions (1/2)

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18.12.2019 Appendix-Definitions-2

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Total Reserves CO2 emissions (tonnes)The calculations of total reserves for the portfolio is based on the list of companies in the portfolio that disclose fossil fuel reserves. These reserves have been converted into CO2emissions to express amount of potential/future CO2 emissions owned by the portfolio. Water Direct + Purchased (m3)The volume of water that is directly abstracted or purchased from utility companies Waste generation (tonnes)Quantity of waste that is generated by the company and incinerated or disposed to landfill Renewable energy generation (MWh)MWh energy produced through renewable energy sources (hydro, solar, wind, geothermal, wave & tidal)

Definitions (2/2)

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18.12.2019 Methodology

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Methodology: Environmental Metrics

Matter

matter · 2020. 6. 3. · solvay sa chevron corporation rwe aktiengesellschaf t heidelbergcement ag...

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