Forum for Strategisk CSR Measuring the immeasurable 18.04.2019 Copenhagen Søren Larsen

Why investors are so excited about ESG: Indication that sustainability and returns goes hand in hand Wealth development for equally weighted ratings portfolios, 2012-16 Kilde: Nykredit/ MSCI ESG Research 2016 18. april 2019

Example of an ESG-fund Bæredygtige aktier Global fund of 60 companies delivers positive alpha with a high ESG-score (6,4) Exclusion of controversies and fossil fuels Stock picking based on fundamental research combined with ESG Active ownership through direct dialogue and AGM participation The portfolio’s companies have a high ESG-score. The portfolio’s average rating is high, and 25% of the portfolio has a higher rating than last year. Both positive and negative impact are closely followed 18.04.2019

The next challenge of investing ESG-returns Impact Sustainable investing 18. april 2019

The important details in the challenge ESG Sector focus Relative measurements Defined by materiality Exponential/ big data Impact Global focus Absolute measurements Intent? Additionality? 18.04.2019

Examples of companies impact - how to acknowledge results and keep focus on challenges Apple: Products use 70% less energy than in 2008, own datacentres use 100% renewable energy (SDG 12) Step by step the company improves working conditions at its suppliers and sourcing of materials. But more is needed. China Everbright: 28,600 tons of waste is converted to energy daily; 3,735,000 m³ of water cleaned daily (SDG 6+7). The company has a ambitious target for work safety, but has not reached it yet. Unilever: 51% of raw agricultural materials sourced sustainably; since 2010, waste pr. consumer has been reduced by 28% (SDG 12). The company has a very ambitious and impactfull ambition of doubling the sales of nutrious products by 2020, but is yet some distance from this. Same goes for sustainable palm oil. Vestas Wind System A/S: 82 GW of new wind capacity installed in 2016 (SDG 7). How do we ensure that the new capacity is not double counted i.e. by the utility having the turbines installed? 18.04.2019

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