tbli conferenceâ„¢ nordic 2014 - sustainable sourcing - hendrik jan boer - ing

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"Integrating ESG factors in investment decisions" - How can investors integrate ESG factors in their investment decision-making - Examples of how ESG issues in the supply chain play a role in this process - Case studies for the approach ING Asset Management takes 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.


  • 1. 1Hendrik-Jan BoerTeam Manager, Senior PM Sustainable Equity InvestmentsSeptember 2014Sustainable SourcingMore than logistics and reputation management

2. 2ING Investment Management approach to Responsible InvestingActive ownership: votingand engagementIntegrating ESG factors in ourbottom-up investment processSpecialised SRI strategies &tailormade RI solutionsDefence Policy, exclusions,societal values and criteria4 pillar approach4Taking Sustainability a step furtherING Investment Management 3. 3ESG integrationAnalyzing ESG factors is an integral part of our research processThe analysis is done by our sector analysts, not a separate ESG teamSector analysts actively involved in engagement activitiesFocus on Material ESG items that positively impact risk-adjusted returns:RI is a more complete approach to investing !Sector analysts have a selection of Material ESG items to focus onMaterial ESG items contribute to the LT bottom line of the business modelING IM is working with an academic research institute to further investigate MaterialityING IM is actively participating in IIRC Pilot Programme Investor NetworkING Investment Management 4. 4BP Oil spill sinks sharesAccounting Scandal at OlympusBribery issues at GlaxoSmithKlineGovernance issues at NewsCorpESG factors can have a material impact on performance 5. 5Research When is something Material ?Mining, EnergySafety Standards, Labour Issues & EnvironmentConsumerSocial Violations, Labour Issues, Food SafetyIndustrialsBribery, Governance, Energy EfficiencyHealth CareProduct Liability, Bribery 6. 6ESG integration 7. 7Challenges in global supply chainsING Investment ManagementFive phases of supply chain optimization 8. 8Challenges in global supply chainsING Investment ManagementLogistics: optimizing increasingly complex chains (globalisation, industry variations, product life-cycles, inventory management, distribution modelsQuality: dependent on development stage of society, important product differentiator, ISO standardsInnovation: competitive advantage, shortened life-cycles reduced timeframe to capitalise success, requires new ways of cooperation (co-creation of products)Sustainability: reducing social and environmental footprint, focus shifts from doing no harm to doing good, (direct) impact analysis and investing, focus from linear to circular supply chains, securing future sourcing and seeking local market growthFinance: managing value chain from physical sophistication and global reach to reduction of working capital, long term finance and integrated risk control 9. 9Material supply chain factorsING Investment Management E&S supply chain factors most material in the following sectors: Food & Staples Retailing Food, Beverage & Tobacco Textiles, Apparel & Luxury Goods Retailing Household & Personal Products Containers & Packaging Examples of E&S supply chain indicators: Scope and quality of E&S supply chain standards Policies and monitoring systems Programmes and targets Sustainable products (e.g. fair trade) Reporting External certificationSource: www.oatsystems.com 10. 10ING IM Additional information: www.ingimresponsibleinvesting.comING Investment Management 11. 11Disclaimer