TBLI 2006 Paris

2

Planet

Profit

People

Planet

Profit People

PlanetProfitPeople

3

Basic principles SNS full scope approach

Companies that successfully maximise stakeholder value will create long-term shareholder value and above average returns

Sector analysis of value drivers using multi-stakeholder perspective:– Different stakeholders have different perceptions of ‘business values’

– ‘Business values’ vary between industries

4

I. MSCI Pan Euro

II. Investment universe

‘best-in-sector’

III. Portfolio

Research steps to create portfolio

Full Scope (Triple P) research

5

Business value

1 Social domain

... ... ...

2 Environmental domain

... ... ...

3 Economicdomain

... ... ...

Alignment: reward good, broad based performance

Integrated analysis

Indicators / data: Clear definition Clear rewarding/scoring Factual Long-term

Transparent Consistent Reproducible Generic or Sector Specific relevance

6

Sector example: Food & Beverages

Product safety Labelling Genetic modification Packaging & logistics Environmental regulation Biodiversity Deforestation Supply chain Health & Safety

Strong brands New products Advertising & Promotion (codes) Consumer driven Pricing power Operations Cash flow Use of natural resources

Sector analysis => relevant considerations:

7

Strategy human cap

Audit & reporting

Strategy risk countries

Suppliers

SocialDimension

Environmental strategy

Production

Product use

Suppliers

EnvironmentalDimension

Full scope evaluation

Code of Conduct

Corp. Governance

Economic Profile

EconomicDimension

‘Business Profile’

Integrated analysis: thematic clusters

8

Peer review: total performance

Investing in Quality