Do not put content on the brand signature area Multi Actor Impact Simulation Prevalent practises / Challenges / Solutions EMTA, General Meeting Oslo – May 21st 2015 Dirk Jan van Swaay Managing Director ING Bank

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Multi Actor Impact Simulation – Public Transport Agenda 1.Introduction 2.Impact Investment Global Trends 3.Good Decision Making, and quick 4.Examples Multi Actor Impact Simulation assessment tool 5.Conclusions and recommendations 6.Discussions and feedback 2

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Introduction Impact Objectives per actor vary, what is IMPACT ? Room for improvement: Impact Accounting, Benchmark, Reporting Funding – lending relationship to benefit Lessons learnt building MAIS models All actors to benefit from a common impact decision model 3

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Multi Actor Impact Simulation – Public Transport Agenda 1.Introduction 2.Impact Investment Global Trends 3.Good Decision Making, and quick 4.Examples Multi Actor Impact Simulation assessment tool 5.Conclusions and recommendations 6.Discussions and feedback 4

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline *Coined first by Antony Bugg-Levine in 2007 (Forbes, Feb ) Investments intended to create positive impact beyond financial return* Impact Investment, Global Trends Exclusion Best-in-class comparison Selection based on market capital Sustainability Indices Lack reliability Controversial Methodology Purpose – set BENCHMARK 5

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Sustainable Indices Controversial methodology* 46% Fund Managers trust DJSI 6 Reasons Identified Lack of standardization Lack of credibility of information Biased ratings Trade-offs Lack of transparency Lack of Independence * As identified by Rate the Raters 5 phase study ( ) 6

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Impact Investment, Global Trends 28 Agencies – assist on non financial reports Methodology Qualitative / Quantitative / Combination Detailed methodology not publically available Qualitative assessment examples Reputex / Trucost / Management & Excellence / GIIRS / Milieubarometer / GreenIntelli 7

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Impact Investment, Global Trends Challenges New Concept Lack of Standardization Industry Acceptance Steps taken Global Reporting Initiative (GRI) America (SASB) since 2011 EU proposed amendments to reporting directives 8

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Multi Actor Impact Simulation – Public Transport Agenda 1.Introduction 2.Impact Investment Global Trends 3.Good Decision Making, and quick 4.Examples Multi Actor Impact Simulation assessment tool 5.Conclusions and recommendations 6.Discussions and feedback 9

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Good Decision Making, and quick TCO PTA OEMs Consumer / passenger PTO Banks Lease 12 nov emb er NGO’s Knowledge Institutes Energy Suppliers Infrastructure … MAIS

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline 12 nov emb er Good Decision Making, and quick Financial costSocial cost Environmental cost

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline 12 november THEY ALL TALK AND TALK AND TALK AND TALK AND TALK AND TALK ABOUT COSTS, but DO THEY TALK ABOUT THE SAME COST? AND DO THEY UNDERSTAND EACHOTHER? AND DO THEY READ THE SAME AMOUNT? AND DO THEY TAKE WISE DECISIONS? Good Decision Making, and quick

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Multi Actor Impact Simulation – Public Transport Agenda 1.Introduction 2.Impact Investment Global Trends 3.Good Decision Making, and quick 4.Examples Multi Actor Impact Simulation assessment tool 5.Conclusions and recommendations 6.Discussions and feedback 13

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline 12 november Examples Multi Actor Impact Simulation

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline 12 november Examples Multi Actor Impact Simulation

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline 12 november Examples Multi Actor Impact Simulation

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Scopes Scope 3 All other indirect emissions Scope 2 From purchased electricity Scope 1 From own or controlled sources 17

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Multi Actor Impact Simulation – Public Transport Agenda 1.Introduction 2.Impact Investment Global Trends 3.Good Decision Making, and quick 4.Examples Multi Actor Impact Simulation assessment tool 5.Conclusions and recommendations 6.Discussions and feedback 18

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Conclusion and Recommendation Return (IMPACT + Financial) converge in risk and funding MAIS is a communication-tool between actors The use of MAIS aims to improve decision making (quality & speed) IMPACT needs to be made SMART SMART: Specific, Measurable, Agreed upon, Realistic and Time-based MAIS is made by and for the actors only Data and accounting rules in public domain, WiKi Expert Panel (reps from each actor) decide on rules and data The Dutch “polder” decision model has worked well Daily use is convincing, and confirms the value added Building MAIS does not have to be expensive 19

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Conclusion and Recommendation Build MAIS together with those with whom you interact Complete MAIS model before negotiation (PTA-PTO) starts Embed MAIS decisions and maintenance in your organisation Ensure that MAIS data is kept up to date Use (for free) what others have already developed Give the tool to the users (not via a consultant) Costs can be low and controlled (approx EUR 50k – 100k) Costs are marginal compared to contract value Limit Scope to what really matters 20

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Need  Honest, verifiable and robust assessment  Evaluate options at par  Set benchmark line – qualify / disqualify proposals 21 Conclusion and Recommendation

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline 22

Do not put content on the brand signature area Orange RGB= 255,102,000 Light blue RGB= 180,195,225 Dark blue RGB= 000,000,102 Grey RGB= 150,150,150 ING colour balance Guideline Multi Actor Impact Simulation – Public Transport Agenda 1.Introduction 2.Impact Investment Global Trends 3.Good Decision Making, and quick 4.Examples Multi Actor Impact Simulation assessment tool 5.Conclusions and recommendations 6.Discussions and feedback 23