23/06/2015 Belgian Sustainable & Socially Responsible Investment Forum © Belsif 2010 The European trends in SRI-assets. Does Belgium keep its leading position?

18/04/23 Belgian Sustainable & Socially Responsible Investment Forum© Belsif 2010

The European trends in SRI-assets. Does Belgium keep its leading position?

October 18th 2010 - SRI Week 2010

Belgisch Forum voor Duurzaam en Maatschappelijk Verantwoord Investeren vzw

Forum Belge pour l’Investissement Durable et Socialement Responsable asbl

Belgian Sustainable and Socially Responsible Investment Forum asbl/vzw


Agenda

Introduction by Hugo De Moor (President – Belsif)

European Trends in SRI-assetsEurosif SRI 2010 study presentationby Matt Christensen (Executive Director - Eurosif)Green, social and ethical funds in Europe 2010 Reviewby Davide Dal Maso (Head of the SRI department in Italy - Vigeo)Progress, developments & achievements on the level of SRI transparency and quality by Herwig Peeters (Director - Forum Ethibel, President - AI CSRR)

What makes Belgium a leader?The specificities of the Belgian SRI marketby Stefaan Decraene (President - FEBELFIN, Chairman - Management Board Dexia Bank Belgium)The legal & political initiatives: Controversial weapons exclusions & Minimal Normby Philippe Mahoux (Senator - PS)

Questions & Answers

Reception


Agenda




Questions & Answers

Reception

European Trends in SRI:

2010 European SRI Study

October 18th, 2010

Matt Christensen, Eurosif

Hosted by KBC

Brussels

Governance• Governed by 8 National SIFs from European countries:

UK, FR, DE, NL, IT, BE, SW, ES

Funding Sources • Institutional Member Affiliates (85)

Mission / Benefits• Develop Sustainability through European Financial Markets• Networking and Promotion for Member Affiliates

Activities

• Research• EU Lobbying• Events and Communications• Initiatives and Partnerships

Eurosif Key Facts: Governance, Financing, Mission and Activities

Eurosif Member Affiliates - 85

Belgium France

Italy The Netherlands

Spain Sweden U.K.

Denmark

Austria, Germany, Switzerland

National SIFs in Europe:

SIFs outside of Europe

Asia Australia Canada United States

Finland

Norway

Leverage and Reach through SIFs

Events/Comm’sResearch

Initiatives &Partnerships

Core Activities

• Sector/ Thematic Studies

• Media Partnerships

• EU Public Policy Position Papers

• Responses to EC Consultations

Lobbying

• Workshops on Selected Topics

• Public presence at EU meetings, investor forums

• HNWI Survey

• Transparency Guidelines

• Newsletter, Social Media• Coordination of EU SRI information, Regional SIF quarterly updates• Video streaming, website, Member Affiliate Servicing

• SRI Market Study

Eurosif Activities in 2010

European SRI Study 2010

Created with the support of:

19 countries covered

2 Market Segments

CORE BROAD

AustriaBelgium

Baltic States

Germany

DenmarkCyprus

Greece

Poland

SpainFrance Finland

Sweden United KingdomNorway

SwitzerlandItaly

2006

2008

Global SRI Market is Growing and Regional Influence is Shifting

2010

Source: Eurosif Research

Total EU SRI assets under management have reached €4.986 trillion as of 31/12/09


* Re-calculated according to the 2010 Core SRI definition

Size of the European SRI Market

Source: Eurosif European SRI Survey, EFAMA Factbook 2009

SRI monetary, bond and equity funds significantly outgrew mainstream funds in 2009

Growth of European SRI Market

Core strategies consist of norms- and values-based exclusions as well as different types of positive screens (Best-in-Class, thematic funds and others).

Norms- and values-based exclusions are the most popular Core strategies in Europe, driven by the Netherlands and Nordic countries.

Broad strategies consist of simple exclusion, engagement and integration, often in combination with one another.

Integration, the inclusion of ESG risk into traditional financial analysis, is gaining ground with some European investors, encouragd by the PRI Initiative.

Core SRI - €1.2 trillion Broad SRI - €3.8 trillion


European Core and Broad SRI

Core vs Broad SRI Across Europe

• Core SRIo Nordics and German

speaking countries remain popular Core SRI markets

• Broad SRIo Integration approach

leads to large Broad SRI markets in France, UK and Spain

European Core and Broad SRI (2)

Core SRI makes up to 10% of the total European asset management market

Source: Eurosif

Note: Bubble size represents the size of Core SRI domestic market

Core SRI

Broad SRI: Spotlight on Integration Strategy


• Investment processo 29% of respondents work

directly and on a regular basis with their mainstream analysts

• Practiceso 36% practice integration on a

case-by-case approach• Training

o Only 11% provide to a large extent ESG training to the organisation’s non-ESG specialist investment management staff

Integration is in the early stages according to the respondents

Public pension and reserve funds lead the way, followed by universities and insurance companies. Corporate and occupational pension funds still hold a

modest position amongst SRI investors.

Source: Eurosif

Who are the Main Institutional Investors?

Bonds have replaced Equities as the preferred asset class for SRI investors. ‘Other’ is a growth area that encompasses private equity,

commodities, real estate

Source: Eurosif

Asset Class Diversification

Demand from institutional investors remains a key driver, along with international initiatives, external pressure and demand from retail investors.

Market Drivers in the Next Three Years


Eurosif

La Ruche

84 Quai de Jemmapes

75010 Paris FR

+33 1 40 20 43 38

www.eurosif.org

Contact Details


Agenda




Questions & Answers

Reception

Green, Social and Ethical Funds in Europe.2010 Review

October 2010

23.

Date

Number of SRI funds

Source: Vigeo (2010)

+27%

+29%

24.

Date

Number of SRI funds per country


25.

Date

Assets in the SRI funds industry


+41%

26.

Date

SRI funds’ assets per country

Source: Vigeo (2010)+92%

27.

Date

SRI funds’ assets: Country/Total (%)


28.

Date

SRI assets increase vs. MSCI World Index annual growth rate


29.

Date

Assets managed by European SRI funds over total UCITS


30.

Date

Assets managed by SRI funds over total UCITS in selected countries


31.

Date

Focus on Belgium (1/2)

Since 2005, Belgium has gradually become one of the prominent markets for SRI in Europe, ensuring a stable and solid growth in terms of number of funds. On the other hand, assets saw notable increases, in particular between 2004 and 2007:

5121,225 1,416 1,311 1,377

2,136

3,764

6,689

7,430

7,981

9,122

14

33

33 33

36

3740

63

105

143

227

0

50

100

150

200

250

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

Dec 1999 Jun 2001 Dec 2001 Jun 2003 Jun 2004 Jun 2005 Jun 2006 Jun 2007 Jun 2008 Jun 2009 Jun 2010

#

mln

Euro

Total asset under management and number of SR funds domiciled in Belgium(end of June 2010)

+55%

+76%

+78%


32.

Date

The growth is notable also in comparison with the total Belgian AUM, making up 9.86% of the whole market, the highest percentage among the European countries.Mean and median trends confirm that the Belgian market is dominated by a few leading major players, as is the whole European stage:

Focus on Belgium (2/2)



33.

Date

The size of green, social and ethical funds: mean

Funds’ asset mean has increased from €78 mln to €86 mln per fund, showing a slight increase (10%), following two years of decreases (€112 mln in 2007 and €91 mln in 2008):

• The mean size has increased in all countries, except for Belgium (-28%) and Germany (-18%),

• The highest mean is that of Italian funds (€141 mln), followed by Dutch, French and UK funds (€126 mln, €123 mln and €116 mln respectively).

Average assets for equity (€83 mln) continues to be lower than that for fixed income – bonds and money market – funds (€211 mln), even if higher than for balanced funds (€63 mln).

34.

Date

The size of green, social and ethical funds: median

The median (€29 mln) has also slightly increased in comparison to 2009 (€28 mln) and remains still much lower than the average in every country, showing that all domestic markets are concentrated around a few leading funds.

This datum is particularly evident in France (mean asset €123 mln, median €28 mln), in Austria (€88 mln, €27 mln) and in Germany (€59 mln, €23 mln).

35.

Ranking June

10

Ranking June

09

Asset Management Company

Fund Name CountryAsset mln

€

1New

Entry Amundi Amundi Tréso ISR FR

6,756

2 4Friends Provident Pensions

Stewardship Pension Fund

UK1,32

5

3New Entry

OFI Asset Management

Ofi Trésor ISR FR1,23

0

4 7 Swiss & Global AMSAM Sustainable Water

CH1,13

4

5 8 Natixis AMNatixis Impact Aggregate Euro

FR1,08

1

6 5Allianz Global Investors

Allianz Valeurs Durables

FR 998

7 6 Macif Gestion Macif Court terme ISR FR 964

8 9 Pioneer AM SAPioneer Funds – Global Ecology

IT 921

9New Entry

AXA Investment Managers

AXA Trésor Court Terme

FR 792

10 1Société Générale Gestion

SG Monétaire ISR FR 722Source: Vigeo (2010)

The size of green, social and ethical funds: the largest funds in Europe

36.

Date

SRI funds: Breakdown by typology (AUM)


37.

Asset Management

CompanyFund Name

Country

Category1y Fund

Perf. (%)

1y Categ. Perf. (%)

First State Investments (UK) Ltd

First State Global Emerg Mkts Sustblty

UKEmerging Markets Equity

42.1 30.3

First State Investments (UK) Ltd

First State As Pac Sustainability

UKAsia-Pacific ex-Japan Equity

37.5 28.9

Swiss & Global Asset Management AG

SAM Sustainable Healthy Living

CHGlobal Small/Mid-Cap Equity

36.0 15.9

Rathbone Unit Trust Management Limited

Rathbone Ethical Bond

UKSterling Corporate Bond

31.7 22.5

FundLogicFSP - Emerging Markets SRI

FREmerging Markets Equity

30.9 30.3Source: Vigeo (2010), elaboration on Morningstar data; returns calculated using Euro as base currency.

Top performing SRI funds in Europe (1 year returns, end of August 2010)

38.

Date

Best and worst SRI 1 Yr performing categories*

Source: Vigeo (2010), elaboration on Morningstar data

39.Top holdings in SRI fund portfolios (as of June, 30 2010)

Ranking June

10

Ranking June 09

CompanyCountr

y

1 3 Vodafone Group UK

2 1HSBC Holdings Plc

UK

3 15 Roche Holding AG CH

4 7 Sanofi-Aventis FR

5 2 BG Group Plc UK

6 5 BNP Paribas FR

7 14 ABB Ltd CH

8New Entry

Nestle SA CH

9New Entry

Ericsson Telephone Company

SE

10 4 Total SA FR

Ranking June

10

Ranking June 09

CompanyCountr

y

11 17Hennes & Mauritz AB

SE

12 6Vestas Wind Systems

DK

13New Entry

Danone FR

14 20 Allianz DE

15 10 AstraZeneca PLC UK

16New Entry

Schneider Electric FR

17New Entry

Koninklijke Philips Electronics N.V.

NL

18 16 ENI SpA IT

19New Entry

GDF Suez FR

20New Entry

Nordea Bank AB SE

Source: Vigeo (2010), elaboration on Morningstar data

40.

Date

Conclusions

SRI AUM grew in absolute and relative terms. SRI remains a niche but its relevance has been increasing year by year, showing in some cases to be more dynamic than the rest of the industry.

The crisis that affected the asset management industry in the last years seems to have pushed further sustainable investing, at least in certain countries where SRI is already affirmed.

The general interest showed by market players, institutions and stakeholders enlarged investors’ focus to new frontiers, including new subjects (HNWIs) and new asset classes (private equity, commodities), favouring in the end the recovery of the market and contributing to the definitive affirmation of SRI.

41.

Date

BRUSSELSRue du Progrès 333 / B71030 Brussels – BelgiumT : +32 2 206 67 91F : +32 2 206 67 [email protected]

CASABLANCATechnopark - Nouacer RoadPB 16435 - Casablanca - MoroccoT : +212 5 29 00 38 83 F : +212 5 22 87 47 [email protected]

MILANVia d’Ovidio, 320131 Milan - ItalyT : +39 02 36 51 81 10F : +39 02 36 51 81 [email protected]

PARISLes Mercuriales, 40 rue Jean Jaurès93170 Bagnolet - FranceT : +33 1 55 82 32 40F : +33 1 55 82 32 [email protected]

Davide Dal MasoHead of Vigeo Rating - Italy T: +39 02 [email protected]

Federico PezzolatoCSR Auditor & ConsultantT: +39 02 [email protected]


Agenda




Questions & Answers

Reception

18th October 2010Brussels, Febelfin

Herwig Peeters,Forum ETHIBEL,AI CSRR

The European trends in SRI Does Belgium keep its leading position?

BELSIF SRI week 2010 Progress, developments and achievements on the level of SRI transparency and quality in the sector

Title presentation

Belgium, a hub for SRI intelligence

■ Under the Belgian presidency of the EU Council in 2001:■ Green Paper “Promoting a European framework for corporate

social responsibility”. Set out the principles underlying CSR and introduces some of the sustainability tools.

■ Inaugural conference on SRI, quality and transparency■ Belgium: 19 years of (pro)activity in SRI■ Belgium: pro capita the largest SRI investor in Europe■ Belgium: leading the ranking of the relative share of SRI

AUM vis-à-vis total UCITS since many years■ 9,42% (Vigeo Milano) | 6,3% (Beama) | 8,9% (Mira-T)

■ Belgium: pioneer on a number of SRI issues■ Is Belgium able to keep its catalysing role in terms of SRI

innovation and quality management promotion?

| 44

Title presentation

SRI biodiversity: strengths and weaknesses

■ SRI concepts have been developed and diversified throughout the years in order to attract new kind of investors and to provide new product groups

■ Some areas of tension between ‘core SRI’ and ‘broad SRI’ (Eurosif terminology):■ A value driven or “ethical” approach to SRI, with limited

potential in terms of market share■ A more “materiality” driven approach to SRI, with a more

limited profundity, however with strong transition opportunities and bigger market potential

■ Passive and active strategies

■ Pluriformity creates fit and surviving products, but has its boundaries on the level of transparency and understanding

| 45

Title presentation

Evolution Mira-T Index Publiek Duurzaam Beleggen (%) 1995-2009

0

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8.000

9.000

10.000

11.000

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

miljoen euro

0,0

0,5

1,0

1,5

2,0

2,5

3,0

3,5

4,0

4,5

5,0

5,5

6,0

6,5

7,0

7,5

8,0

8,5

%

Vermogen in duurzame beleggingsproducten (miljoen euro)

Mira-T I ndex Duurzaam I nvesteren voor Particulieren

Title presentation

Changing regulatory environment

■ Regulation: the need to clarify/tighten the transparency and disclosure laws (Belgium, Europe). ■ Not even a “comply or explain” requirement

■ Self-regulation: ongoing discussions to enlarge the fiduciary duties to ESG risk management issues ■ UNEP FI AMWG

■ Self-regulation: upcoming codes of conduct regarding the incorporation of ESG considerations: ■ UN PRI, South Africa Code, …

■ Self-regulation: SRI Research Quality Standard■ The 11 commitments (AI CSRR) + CSRR-QS

■ Regulation should not be the (only) driver, drivers should be: ■ Superior risk-adjustments■ Ownership of the active or passive investment policies■ Transparency and stakeholder dialogue

| 47

Title presentation

The SRI supply chain, the actors, the players

■ Various production processes■ Multiple supply chains■ Different value chains■ However one identifiable process flow chart for all …■ This is the backbone for implementation of quality

management systems ■ This is the basis for driving audit and verification

processes

■ Expectations vis-à-vis transparency and supervision largely dependent on the nature of the player or the stakeholder

| 48

Development methodology

Data collectionData processing

AssessmentsSelection process

Asset management

Product management

Title presentation

Two systems are operational on the level of transparency and external supervision

■ Eurosif SRI Transparency Code, version 2, 02/2010■ Eurosif (the European Sustainable Investment Forum) is a pan-

European group whose mission is to address sustainability through financial markets

■ The code was created due to two key drivers:1. The opportunity for funds to proactively clarify their approach to SRI and therefore, positively reflect their transparency to investors and other stakeholders.2. Strengthen a proactive auto-regulation which contributes to the development and promotion of SRI funds by setting up a common framework around good transparency practices.

■ Type: comply AND explain■ Guidance notes for fund managers; logo; disclaimer; one pager■ Belgian signatories■ External verification process under development: reality check

www.eurosif.org/publications/european_sri_transparency_code

| 49

Title presentation

Eurosif SRI Tranparency Code

■ Section 1. Basic Details■ Signatories should be clear about who they are and provide background information

on the fund management company, and the fund(s)

■ Section 2. ESG Investment■ Signatories should be clear about the fund(s) purpose and its (their) ESG investment

criteria

■ Section 3. ESG■ Signatories should provide clear information on the ESG research process of their

investments.

■ Section 4. Evaluation and Implementation■ Signatories should provide information on how the ESG research is used to build and

maintain their portfolio

■ Section 5. Engagement Approach■ Signatories should explain their approach to engagement if the fund has such a

policy

■ Section 6. Voting Policy■ Signatories should make clear their policies on voting

| 50

Title presentation

CSRR-QS

■ CSRR-QS version 2.1, 04/2008■ AI CSRR (Association for Independent Corporate Sustainability

and Responsibility Research) is created to develop, promote and maintain high professional standards, expertise and codes of conduct for the CSRR sector.

■ CSRR-QS 2.1 has been drawn up with the objective of promoting confidence in CSRR Groups.

■ “11 Commitments” + “9 Integrity Principles and Ethical Commit-ments” (www.csrr-qs.org)

■ What is being certified? Methodologies, with all their related practices and quality management systems + the functioning of the CSRR group(s) or networks

■ Type: comply■ Transparency Matrix, Guidance Document, …■ External verification process existing since 3 years: conformity

check + quality check

| 51

Title presentation

CSRR-QS Audit & Certification

■ Sector implemented ISO-like certification system■ Experienced auditor, qualified against ISO 19011 as guideline for

performing the audits■ The Certification Council (CC)

Independent body that is responsible for making the formal certification decisions.

■ AI CSRR implements ISO Guide 62 as guideline for the auditor time, audit frequency, multi-site certification

■ Broader and less demanding standard being developed for implementation in 2011■ May be applied for SRI, ESG and thematic funds■ Focus rather on the level of group than on methodology

| 52

Title presentation

The reputational damage for BP …and for the SRI community

Title presentation

SRI in Belgium has got soul …


Agenda




Questions & Answers

Reception

18 October 2010

The specific character of the Belgian SRI marketStefaan Decraene Chairman of FebelfinChairman of the Management Board of Dexia Bank Belgium

agenda

■ The Belgian SRI market: recent trends and key success factors

■ Current and future challenges: certification, international developments and consultation

■ Conclusion

Title presentation

1,08 1,24 2,07 4,07 5,65 7,52 6,50 7,81 7,37

0,89% 0,95%

1,46%

2,44%

3,23%

4,36%5,44%

6,29%6,02%

0%

1%

2%

3%

4%

5%

6%

7%

0

1

2

3

4

5

6

7

8

9

10

2002 2003 2004 2005 2006 2007 2008 2009 Q2 2010

Net assets (Bill. EUR) % Market

Belgium: one of the leading European SRI markets, both in terms of absolute value and savings market share

Development and recognition of the SRI market in Belgium

Perimeter BEAMA SRI: UCIs which are active in sustainable and socially responsible investing, structurally and systematically take into account, environment, society and governance (ESG) aspects when outlining their investment policy.

Perimeter BEAMA statistics: UCI’s under Belgian and foreign law publically distributed in Belgium.Source: BEAMA

Estimation

Title presentation

Belgium: one of the leading European SRI markets, both in terms of absolute value and savings market share

Belgian SRI market: 3rd place in the European rankings based on size

Lipper perimeter: RI screened – Funds following a best-in-class or commitment-based approach Source: Lipper FMI FF, Dexia AM Market Research Source market share: EFAMA (fact book september 2010) - Eurosif (SRI Report 13/10/2010) - Nationale associaties (SFA) - Centrale bank (DNB)

1. France■ 21.7 billion EUR■ 1.6% market share home market

2. United Kingdom■ 7.5 billion EUR■ 2.1% market share home market

3. Belgium■ 6.7 billion EUR■ 6.9% market share home market

4. Switzerland■ 6.6 billion EUR■ 3.7% market share home market

5. Germany■ 5.2 billion EUR■ 0.6% market share home market

6. Netherlands■ 4.8% market share home market

Title presentation

The success of the Belgian SRI market depends on society’s stakeholders (associations, public authorities and the financial sector) taking into account a combination of 4 key elements…

Active and constructive role played by all stakeholders: associations, public authorities and financial sector

Products becoming increasingly well-known

Extendedoffer

Growing interest from investors

Long-term sustainable investment type

3

1

2

4

Title presentation

The pioneering role of the Belgian market in responsible investment stems from the long-standing concerns of social and political organisations that the financial sector has managed to meet…

■ 1970: First associations for proximity saving, aimed at the financing of social or alternative projects

■ 1982: Netwerk Vlaanderen, first network to promote solidarity-based social economy in Belgium

■ 1984: In collaboration with ASLK/CGER, Netwerk Vlaanderen launches the ‘Krekelsparen’ savings product

■ 1987: Réseau Financement Alternatif (RFA) is created and launches the ‘épargne Cigale’ savings product, which is based on the Flemish model

■ As of 1992: The financial sector launches SRI funds

■ 1992: Ethibel, an initiative taken by NGOs active in the field of alternative financing, environment protection, the peace movement, the Third World movement and other forms of social action

The Belgian market has played a pioneering role in the field of responsible investment

Title presentation

Today, the promotion of ISR is strengthened by the structures actions of the representative associations…

Associations promoting SRI

Eurosif European Sustainable and Socially Responsible Investment Forum

Members: pension funds, financial services providers, academic institutions, research associations and NGOs

Belsif Belgian Sustainable and Socially Responsible Investment Forum

Stimulate, promote and support SRI in Belgium

Efama European Fund and Asset Management Association

BEAMA Belgian Asset Managers Association

Working Groups dealing with sustainable and socially responsible investment

http://www.eurosif.org/

http://www.belsif.be/

Title presentation

The role of the public authorities as a catalyst for investors’ interest and hence as a driving force behind the development of SRI-type saving…

Federal Plan for Sustainable Development

Armament

Transparency3

2

Role of thepublic

authorities

Strategy• Supporting

CSR• Supporting

ethical investment

Actions• SRI within the

civil service• Sustainable

pension saving

• Transparency rules in the field of ISR

A topic in Belgium for a long time

• NGO, peace movement, …

Controversial investments

• 2006: Mahoux Law prohibiting the financing of weapon systems

• 2009 : Law prohibiting the financing of uranium weapon systems

July 2004 Law on some types of collective management of investment portfolios

• Prospectus, annual & semi-annual reports

Sector initiatives taken by BEAMA

• Given the lack of a list drawn up by the Government,

• Armaments ‘blacklist’ via Ethix

• Outspoken willingness to promote ethical products

• Belgium is a leader in Europe, especially in the field of arms regulations

1

Title presentation

29 3237 40

56

81

128

179

192

0

25

50

75

100

125

150

175

200

2002 2003 2004 2005 2006 2007 2008 2009 Q2 2010

Number

A sustained increase of supply over the last few years ...

■ Explanation■ Broadening of the scope

(from equity to all types of assets)

■ Development of SRI products by almost every promoter

■ Development of capital-protected funds

Strong increase in the number of SRI products on the Belgian market

Source: BEAMA

Mean annual growth ra

te: 30%

40%

Title presentation

A sustained increase of supply over the last few years ...

■ Promoters with Belgian roots are occupying a prominent position■ KBC, BNP Paribas and

Dexia among the Top 10 European leaders in SRI

■ Type of players■ Financial groups SRI as

strategic development axis

■ Insurers Integration of SRI into the management of their technical provisions

■ Pension funds growing interest in SRI

More and more players in the European market

Top groups by assets (2010-06)All RI funds

Amundi7%

BNP Paribas7%

KBC6%

Naxitis5%

Pictet4%

Allianz4%

Dexia4%

Others63%

Title presentation

The vast majority of SRI products are funds with a whole range of different investment profiles…

The Belgian SRI-market offers a diversified portfolio which meets all risk profiles

Types of SRI-products in Belgium Funds: split by investment type

Equity9,9%

Mix10,6%

Structured products

38,1%

3rd FF0,1%

Bond41,4%

Funds88%

Savings accounts

3%

Insurance products

6%

Other (pension funds,

cooperator shares)

3%

AUM of RI-Screened funds by fund types Belgium marketFigures as a % of AuM per investment type

Source: Belsif, Dexia AMLipper FMI FF, Dexia AM Market Research

Title presentation

The current offer is based on a variety of products, all of them, however, with definite long-term horizons… Ethical

excluding companies involved in controversial activities Best-in-Class

selection of the best companies in each sector from the point of view of the basic principles of sustainable development

Norms-based selection of companies based on the way in which they take account of

the most important international treaties (e.g. human rights, labour standards, fight against corruption…)

Thematic-based selection of the best companies based on a specific theme in connection

with sustainable development

Engagement and Proxy voting dialogue with the companies taking part in the voting at the General

Meetings, investors coalition

Belgium: Evolution from ethics (90s) towards Best-in-class, with combination between norms-based approach and exclusion of armaments

Belgium: Few examples of thematic approach and engagement-based approach compared to rest of Europe

Title presentation

The aim of long-term management enhances the attractiveness of the SRI products, especially in times of crisis…

Financial crisis: hard times for any kind of investment product

Drop SRI assets in 2008, but less than for traditional funds

Evolution of outstanding amounts Bigger increase in SRI outstanding amounts than to traditional funds

Transforming traditional funds into SRI

Source: Lipper FMI FF, Dexia AM Market Research

SRI-type funds have been less affected by the crisis

Belgian SRI

market

Traditional

Belgian market

Belgian SRI

market

Traditional

Belgian market

2008 -5,21% -18,29% 4,74% -2,66%2009 4,08% -6,36% -7,20% -12,12%

Evolution of outstanding amounts New outstanding amounts

agenda



■ Conclusion

Title presentation

Certification is a major concern. Belgium does not have to start from zero …

Ethibel■ Institution for certification of ethical and solidarity-based products

■ ETHIBEL Pioneer and Excellence labels: for funds that apply the Ethibel methodology ■ Funds certification: custom-made for other funds with specific approaches

Eurosif ■ Certification of funds that comply with « European Transparency Code »,

as regards information and communication quality

BEAMA■ Method for granting an SRI-label1 to funds on the basis of:

■ The prospectus■ The extent to which the three aspects of SSRI are taken into account■ Compliance with the United Nations Global Pact■ The portfolio■ The independent third party■ Transparency ■ Reporting and supervision

1 Sustainable and Socially Responsible Investment

In Belgium, the financial sector is ready to contribute to the debate aiming at aligning SRI methodologies within a realistic certification framework

Title presentation

Passionate debate about the minimum certification standard: « Danger is in the details… »

Discussions about the introduction of a minimum SRI standard ■ Making an appeal to the politicians and the different SRI players ■ Discussions about the feasibility of this kind of project, its implementation

and the follow-up as regards: ■ the criteria for exclusion■ the criteria for inclusion■ the commitment■ the transparency

Objectives■ Enhancing the credibility of SRI■ Simplified identification of the investors

Matters of interest■ Is there any chance of stakeholders unanimously agreeing on the principles?■ What about the interpretation of concrete examples?■ Keeping a sufficiently open mind so as to cope with the various approaches

and creativity as well■ No limit on Belgian funds at the international level

Agreement on the principle, but difficulty in putting it into practice

Title presentation

The Belgian financial sector wants to make a constructive and voluntary contribution to the success of SRI by lending an ear to the social and political organisations…

■ Belsif Forum: place for of a sound cooperation

■ SRBI platform■ Two working groups

■ SRI: will perform a feasibility study for installing a minimal

standard for SRI

■ SRB (Socially Responsible Banking): will draft CSR questionnaire

agenda



■ Conclusion

Title presentation

Conclusions

■ Belgium was one of the first countries to have brought SRI to the fore and still is one of the leading SRI markets

■ The range of SRI products has been extended both with respect to the number of players and to the categories of assets

■ Transparency is a driving force behind the development of SRI in Belgium

■ Interest in the principle of a minimum SRI standard but difficulty in putting it into practice

■ SRI is more than just another part of the range of financial products, but must be seen within the broader context of Corporate Social Responsibility, a challenge fully recognised by the financial sector

■ The Belgian financial sector wants to make a constructive and voluntary contribution to the success of SRI by lending an ear to the social and political organisations

■ Take into account the European dimension of the financial sector and the Belgian economy

Thank you for attending


Agenda




Questions & Answers

Reception


Agenda




Questions & Answers

Reception


Agenda




Questions & Answers

Reception


SRI Week 2010

All info on www.belsif.be

Documents

23/06/2015 Belgian Sustainable & Socially Responsible Investment Forum © Belsif 2010 The European trends in SRI-assets. Does Belgium keep its leading position?