Zurich, March 2014

Introduction to DJSI & RobecoSAM’s Corporate Sustainability Assessment

Agenda

• Introduction to RobecoSAM and Dow Jones Sustainability Indices

(Ida Karlsson, Head Sustainability Application & Operations)

• Introduction to the assessment process and the online framework

(Manjit Jus, Sustainability Operations Manager)

• Timeline, next steps and some points for a successful submission

(Ida Karlsson, Head Sustainability Application & Operations)

• Q&A

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Dow Jones Sustainability Indices (DJSI)

Overview

• Cooperation with S&P Dow Jones Indices for the publication and licensing of the

DJSI, launched in 1999

• Currently, more than 45 investment products in 15 countries are based on the

DJSI

Methodology

• Integrated assessment of economic, environmental and social criteria with a

strong focus on long-term shareholder value

• Rules-based methodology and use of primary research

• Focus on best-in-class companies. Yearly review of component selection and

continuous monitoring of companies

• Assurance of the assessment process by Deloitte

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DJSI: Most Recognized Sustainability Index

Which ratings and rankings are experts at least somewhat familiar with? Source: SustainAbility (2013) “Rate the Raters 2013 – Polling the Experts”

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71

59

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Dow Jones Sustainability Index

Carbon Disclosure Project (CDP) Leadership Index

FTSE4Good Index Series

Fortune’s Most Admired Companies

Global 100 Most Sustainable Corporations in the World

Bloomberg Sustainability Reporting Initiative

CR Magazine's 100 Best Corporate Citizens List

World's Most Ethical Companies (Ethisphere)

Sustainalytics Company Profiles and Ratings

GoodGuide

Oekom Corporate Ratings

MSCI ESG Indices

Climate Counts

Vigeo Ratings

GS Sustain

ASSET4 ESG Ratings

Access to Medicines Index

Inrate Sustainability Assessment

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Holistic Analysis: RobecoSAM’s Integrated Research Approach

Corporate

Sustainability

Assessment

Fundamental

company

analysis

and modeling

Investment

decisions

Sustainability Foresight

&

Insight

Industry and

sector studies

Methodology development

Sustainability Analysis

• RobecoSAM Indices Cooperation with S&P Dow Jones Indices

• RobecoSAM Asset Management Theme Equity Strategies Core Equity Strategies Clean Tech Private Equity

• RobecoSAM Sustainability Services Company Benchmarking

• RobecoSAM Publications Industry Studies Sustainability Studies

• Robeco Responsible Investment Products

• 3rd Party Cooperation Research Cooperation

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Economic Dimension • Corporate Governance • Risk & Crisis Management • Codes of Conduct & Corruption • Customer Relationship Management • Supply Chain Management • Innovation Management

Environmental Dimension • Environmental Reporting • Climate Strategy • Operational Eco-Efficiency • Product Stewardship • Environmental Policy & Management

Systems

Social Dimension • Social Reporting • Labor Practice Indicators • Human Capital Management • Talent Attraction & Retention • Corporate Citizenship & Philanthropy • Stakeholder Engagement

Industry Specific Criteria > 50%

General Criteria < 50%

33% 33%

33%

Over 130 cross- and industry-specific criteria and dimension weights

The breakdown between industry specific and general criteria and the dimension weights are indicative only and may deviate for each of the 59 different industries

analyzed by RobecoSAM.

RobecoSAM‘s Industry-Based Analysis

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RobecoSAM’s Unique Model: Company-Sourced Data

Data

Sustain-ability

Services

Methodology

Feedback & Insight

Data Provided Directly by Companies

Corporate participation via the DJSI questionnaire

RobecoSAM SI Research

Industry Expertise

Topic expertise

SIMS3 Database

Unique insights from companies are essential

High-quality and detailed information

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Continuous Methodology Development

RobecoSAM SI Research

Methodology Collaborations

- CDP - London Benchmarking

Group - EcoVadis

Industry Expertise

Topic Expertise

Methodology Development Company Feedback

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Benefits of Participation

• Benchmarking reports – overview of sustainability performance

• Reputation and brand – DJSI Member Logo & potential Sustainability Yearbook Inclusion

• Greater buy-in from management on importance of sustainability

• Build-up of internal network

• Improvement on sustainability performance and reporting

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0

200

400

600

800

1000

1200

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Self Assessed Companies Participated Company Participation Growth Rate

CAGR: + 7.4%

Increasing participation of companies in DJSI over the years

RobecoSAM CSA: Participation Trend

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RobecoSAM Research - Sustainability Assessment

Sustainability Methodology Development

• Analysis of scoring results for improvements

• Development of new criteria, modification of questions

Quality Control of Company Submissions

• Ensuring validity of company responses

• Validating supporting evidence

• Verifying consistency of comments and public disclosures

Generation of Sustainability Scores

• Scores generated from answers based on pre-defined rules and weightings

• Validation of scoring results

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S&P Dow Jones Indices

Responsible for Index Calculation

• Index components chosen based on pre-defined rules in the Index Guidebooks

• Selections based on Global Industry Classification System (GICS)

• Companies are compared within their respective industries

Dow Jones Sustainability Index Selection – Best in Class

• Top 10% performers in each industry form the basis for selection

• DJSI Regional Indices select top 20% within each industry

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March 14

Assessment Process - Overview

Appraisal & selection

Submit your response

Fill out the questionnaire

Register & confirm

participation

Invitation & eligibility

Announcement of new members

April 3 May 28 June - August April 3 – May 28 September 11

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Invitation and Eligibility

Who is eligible for the Dow Jones Sustainability Indices and is invited to participate in the RobecoSAM Corporate Sustainability Assessment?

• The 2500 largest companies based on free-float market cap is invited for DJSI World. The starting point for this is the S&P Global BMI.

• For the regional indices, the top 600 largest companies in the S&P Global BMI

• For DJSI Emerging Markets, the top 800 largest companies from 23 emerging markets

• The free-float market cap is considered as of end of December the year before

• The full list of eligible companies can be found on sustainability-indices.com

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Assessment Process - Overview

Appraisal & selection

Submit your response

Fill out the questionnaire

Register & confirm

participation

Invitation & eligibility

Announcement of new members

March 14 April 3 April 3 – May 28 May 28 June - August September 11

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Registration & Confirmation of Participation

How can I get started and when will I be able to access the questionnaire and start filling it out?

• The official invitations were sent out on March 14

• On April 3, all invited companies will receive an email sent out from the online system with instructions

• For new companies, you will need to register and sign up for an account

• For returning companies, you only need to confirm your participation

• The 2014 questionnaire will only become available for editing once you have confirmed your participation by clicking on the link in the email you will receive.

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Assessment Process - Overview

Appraisal & selection

Submit your response

Fill out the questionnaire

Register & confirm

participation

Invitation & eligibility

Announcement of new members

March 14 April 3 May 28 June - August April 3 – May 28 September 11

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How do I login and where can I find additional information about the Sustainability Assessment?

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How do I navigate in the questionnaire?

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What support functions are available for me to get started?

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What support functions are available when I answer questions?

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How can I answer the questions in the best possible way?

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Assessment Process - Overview

Appraisal & selection

Submit your response

Fill out the questionnaire

Register & confirm

participation

Invitation & eligibility

Announcement of new members

March 14 April 3 May 28 June - August April 3 – May 28 September 11

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Submitting Your Response

The deadline for submitting the response is May 28th, midnight CEST

• Once the submission button is clicked, your data is automatically transferred to RobecoSAM

• The Approval Form needs to be signed and sent to RobecoSAM within one week after submission

• Deadline extensions can be granted on an exceptional basis and should be applied for when signing up for the assessment

• Confidentiality of your supporting evidence is ensured by stringent Use of Information Policy and Disclaimer, which can be found on the website

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Assessment Process - Overview

Appraisal & selection

Submit your response

Fill out the questionnaire

Register & confirm

participation

Invitation & eligibility

Announcement of new members

March 14 April 3 May 28 June - August April 3 – May 28 September 11

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Measuring Corporate Sustainability

Information gathering

Quality control / appraisal

Dow Jones Sustainability Indices

Criteria

Scores

Products

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Assessment Process - Overview

Appraisal & selection

Submit your response

Fill out the questionnaire

Register & confirm

participation

Invitation & eligibility

Announcement of new members

June - August March 14 April 3 April 3 – May 28 September 11 May 28

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Announcement of Index Members

The new index members are publically announced on September 11

• Members have the right to use membership logo – the usage guidelines are included in the Approval Form

• Results are communicated through two useful reports

• Company Benchmarking Scorecard

• Industry Overview

• The top performing companies in each of the 24 Industry Groups are highlighted through sustainability profiles on the website

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Example of Company Benchmarking Scorecard

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Timeline and Next Steps

Appraisal & selection

Submit your response

Fill out the questionnaire

Register & confirm

participation

Invitation & eligibility

Announcement of new members

June - August March 14 April 3 April 3 – May 28 September 11 May 28

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Recap: How do I answer the questions in the most efficient way?

• If requested – provide supporting evidence that covers all answers that you have marked

• Remember that the official language of the DJSI is English and that you continously need to update your policy documents

• If you consider a specific question to not be applicable to you, explain why and specifically show that this is related to your business model

• Provide explanatory comments if needed

• Be brief and to the point. Make sure that you provide the most relevant information for the question asked

• Confidentiality of supporting evidence is ensured by a stringent Use of Information Policy which can be found on the website

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What do I do if I need more help?

Most information is available via the assessment portal

• Extensive FAQ

• Main methodology changes

• Use of Information Policy and Disclaimer

• Confidentiality of Documents

• Benefits of Participations

• Approval Form

If you still have additional questions – do not hesitate to contact our dedicated RobecoSAM DJSI Helpline

• index@robecosam.com

• +41 44 653 10 30

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Questions?

RobecoSAM DJSI Helpline index@robecosam.com

+41 44 653 10 30

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Disclaimer

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