Sasja BeslikHead of SRI Banco/ABN AMRO Asset Management

Investment x Responsibility = Profit 22

INSTEAD OF JUST THE NEXT QUARTER, INSTEAD OF JUST THE NEXT QUARTER,

HOW ABOUT THE NEXT QUARTER OF A CENTURY…HOW ABOUT THE NEXT QUARTER OF A CENTURY…

- Asset Manager specialist

- Unique SRI concept

- Charity/NGO supporting and SRI-funds

- 170 000 customers

- AUM: SEK 14 billion.

THE LEADING SRI MANAGER IN SWEDENTHE LEADING SRI MANAGER IN SWEDEN

Investment policy setting…Investment policy setting…

Human Rights:Human Rights: UN Universal Declaration of Human Rights UN Convention on the rights of the child

Labour issues:Labour issues: ILO Core Conventions OECD guidelines for multinational corporations

Corruption UN Corruption Convention OECD guidelines for multinational corporations

Environment:Environment: UN Convention on biological diversity: Cartagena protocol on biosafety UN Montreal Protocol on substances that deplete the ozone layer UN Framework Convention on Climate Change: Kyoto protocol

Seeking for opportunities…by managing risks

Coctail Molotov…trends

• Corporate Governance in international focus

• Increasing European legislation

• Increasing demand from institutional investors

• SRI is becoming more mainstream

• From passive exclusions to active engagement

• PRINCIPLES FOR RESPONSIBLE INVESTMENTS (PRI)PRINCIPLES FOR RESPONSIBLE INVESTMENTS (PRI)

0

50

100

150

200

2004 2008E

SRI AuM and SRI Revenue are expected to grow rapidly in Europe

€173 BN

€93 BN

European SRI AUM (€BN)

CAGR1 : 1

7%

0

100

200

300

400

500

2004 2008E

European SRI revenue (€MM)

42% retail

58% institutional

20% retail

80% institutional

€420 MM

€240 MM

CAGR: 1

5%

1 CAGR = compound annual growth rate

41%

59%

20%

80%

In the US from 1995 to 2003, SRI AuM grew 40% faster than all

professionally managed assets in the US.

Estimates suggest that retail SRI assets will double by 2008

Est. 04-’08 CAGR

0

5

10

15

20

25

30

35

40

2004 2008

SRI AUM (€BN)

Austria

Denmark

Switzerland

Germany

Italy

Netherlands

France

Sweden

UK

CAGR 1

6%

€18 BN

€35 BN

16%

24%

8%

22%21%

24%

11%

13%

8%

20%

Brazil

Norway 7%

SpainBelgium 10%

9%

Source: Feri FMI market data as of September 2004Mercer Oliver Wyman analysis

Institutional AUM invested in SRI are expected to approach €140 BN by 2008

0

20

40

60

80

100

120

140

160

2003 2008

SRI AUM (€BN)

Germany

UK

SwedenBelgium

Brazil

Finland

15%

12%

11%

13%

6%

€75BN

€139BNC

AG

R: 1

3%

Netherlands

DenmarkNorway

17%

19%17%

Switzerland

Spain

20%22%

France

27%Italy

Austria29%

20%

38%

Source: Feri FMI market data as of September 2004, Mercer Oliver Wyman analysis

Est. ’03-’08 CAGR

Piano in the Dark…Piano in the Dark…

• Fact that social & environmental responsibilities pay good dividend in the short and long-term.

• Assessment of future risks and long-term profitability

• Customer demand

• Media

• NGO’s

Unforgettable…integration

SRI

Movement of SRI specialists e.g. Banco Movement of mainstream into SRI

Responsible investments

Nothin’ Else… conceptNothin’ Else… concept

Social and environmental risk & opportunities perspective…”upside” Pro-active approach Engagement Knowledge transfer Active ownership

HOW and HOW GOOD? HOW and HOW GOOD?

Social and environmental risks Internal policies and monitoring procedure CSR awareness and top management’s engagement Inclination to change

Talk is……cheap Talk is……cheap

SRI investment process…SRI investment process…

Fundamental analysis

Follow up and Control

(compliance)

Ongoing monitoring

Drafting model portfolio

Screening/Applying the SRI criteria

Individual evaluation of companies

Selection of replacement stocks

Active engagement

Classification of companies

Better by the Pound…

• Type of business operations

• Geographies

• Risk exposure & link to product and service opportunities• Risk of biased information • Complex evaluations• Media’s attitude

What is reasonable…What is reasonable…

• Integration of social,environmental and ethical issues in daily business operations

• Risk/problem management & “upside” story

• Humble – open – sensitive outlook

• Top down process

• External reporting

Sustainability performance

Fina

ncia

l per

form

ance

Ideal Spot

Before…Before…

Sustainability performance

Fina

ncia

l per

form

ance

Ideal Spot

Now…Now…

Ideal Spot

Ideal Spot