tbli conferenceâ„¢ nordic 2014 - fossil fuel investment strategy - christine...

Download TBLI CONFERENCEâ„¢ NORDIC 2014 - Fossil Fuel Investment Strategy - Christine Torklep - Storebrand

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"Strategies for long term investors" Global challenges requires new business models, and it is of particular importance to reduce fossil fuel dependency. How can we go about this challenge? TBLI CONFERENCE™ NORDIC 2014 Our first ESG & Impact Investing conference in the Nordic region, hosted by the BI Norwegian Business School in Oslo. For 2 days, the conference offered a platform to learn about current trends in sustainable investing and CSR in the Nordic region – and ample opportunity to find new business partners. Unique to this event, selected entrepreneurs have been invited to present their innovative green technology and climate change related projects to the investor community.

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  • 1. Beyond Fossil Fuel InvestmentsTBLI, 11 September 2014Christine Trklep MeisingsetStorebrand Asset Management ASPortfolio Manager/Head of ESG Research@ctmeisingset

2. Shifting Business Context2 3. Strategies for Sustainable Investing Divestments (business risks) Preference for higher qualityRiskreduction Agent for improvements Public debateActiveownership Asset allocation Preference for higher qualityInvest insolutions3 4. Not just equities..Equities BondsPrivate EquityReal EstateForestry Government bonds4 5. Sectors (GICS)Code Sector Subcode Industry Groups10 Energy 1010 Energy15 Materials 1510 Materials20 Industrials2010 Capital Goods2020 Commercial & Professional Services2030 Transportation25 Consumer Discretionary2510 Automobiles and Components2520 Consumer Durables and Apparel2530 Consumer Services2540 Media2550 Retailing30 Consumer Staples3010 Food & Staples Retailing3020 Food, Beverage & Tobacco3030 Household & Personal Products35 Health Care3510 Health Care Equipment & Services3520 Pharmaceuticals, Biotechnology & Life Sciences40 Financials4010 Banks4020 Diversified Financials4030 Insurance4040 Real Estate45 Information Technology4510 Software & Services4520 Technology Hardware & Equipment4530 Semiconductors & Semiconductor Equipment50 Telecommunication Services 5010 Telecommunication Services55 Utilities 5510 Utilities 6. Fossil fuels industry groups10 Energy 1010 Energy 101010Energy Equipment &Services 10101010 Oil & Gas DrillingDrilling contractors or owners of drilling rigs that contract their services for drilling wells10101020 Oil & Gas Equipment & ServicesManufacturers of equipment, including drilling rigs and equipment, and providers of supplies and services to companies involved inthe drilling, evaluation and completion of oil and gas wells.101020Oil, Gas & ConsumableFuels 10102010 Integrated Oil & GasIntegrated oil companies engaged in the exploration & production of oil and gas, as well as at least one other significant activity ineither refining, marketing and transportation, or chemicals.10102020 Oil & Gas Exploration & ProductionCompanies engaged in the exploration and production of oil and gas not classified elsewhere.10102030 Oil & Gas Refining & MarketingCompanies engaged in the refining and marketing of oil, gas and/or refined products not classified in the Integrated Oil & Gas orIndependent Power Producers & Energy Traders Sub-Industries.10102040 Oil & Gas Storage & TransportationCompanies engaged in the storage and/or transportation of oil, gas and/or refined products. Includes diversified midstreamnatural gas companies facing competitive markets, oil and refined product pipelines, coal slurry pipelines and oil & gas shippingcompanies.10102050 Coal & Consumable FuelsCompanies primarily involved in the production and mining of coal, related products and other consumable fuels related to thegeneration of energy. Excludes companies primarily producing gases classified in the Industrial Gases sub-industry and companiesprimarily mining for metallurgical (coking) coal used for steel production.15 Materials 1510 Materials 151010 Chemicals 15101010 Commodity Chemicals15101020 Diversified Chemicals15101030 Fertilizers & Agricultural Chemicals15101040 Industrial Gases15101050 Specialty Chemicals151020 Construction Materials 15102010 Construction Materials151030 Containers & Packaging 15103010 Metal & Glass Containers15103020 Paper Packaging151040 Metals & Mining 15104010 Aluminum15104020 Diversified Metals & Mining15104030 Gold15104040 Precious Metals & Minerals15104050 Steel151050 Paper & Forest Products 15105010 Forest Products15105020 Paper Products55 Utilities 5510 Utilities 551010 Electric Utilities 55101010 Electric Utilities551020 Gas Utilities 55102010 Gas Utilities551030 Multi-Utilities 55103010 Multi-Utilities551040 Water Utilities 55104010 Water Utilities551050Independent PowerProducers & EnergyTraders 55105010 Independent Power Producers & Energy Traders 7. Carbon Cost Curve of Oil Production 8. Financial relevance into the debate8 9. Strong Growht in Green Bonds9Finansavisen,24/6 2014 10. Game Changer Car IndustryStock price 1989-2010General Motors 11. Shareholder perspectiveShareholders will be best servedby companies whomaximize their financial returnby strategically managing theirperformance in this new economic,social and environmental context(Generation Investment Management,2012)11