TBLI - SRI and Transparency, 14 November 2008 1

Date: 14 November 2008

Eve Morelli – Client Services Executive

TBLI – SRI and Transparency

A Key to ESG Analysis: Seeing the Forest and the Trees

TBLI - SRI and Transparency, 14 November 2008 2

About ASSET4

Founded in 2003

Leading provider of comprehensive, consistent and measurable ESG information

Headquartered in Zug, Switzerland with locations in London, New York, Frankfurt, Mauritius and India with a total of 220 employees

ASSET4’s data is used by clients representing more than EUR 4 trillion assets under management

We provide 900 master data points on 278 indicators for over 2,200 companies via a web browser, targeting 2,500 by the end of 2008.

Clients include asset managers, pension funds, equity research, hedge funds and insurance companies.

Partners: International Institute for Management Development (IMD), GOE / Swiss Federal Institute of Technology (ETH); Copenhagen Business School (CBS)

Our objective is to be the “Bloomberg of extra-financial information”

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ASSET4 Products and ServicesQuick Overview

ASSET4 ESG

Database

Rating System

News Services

Other Services

One-Click ESG

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ASSET4 Information FrameworkASSET4 Information Framework

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Publicly Available Data Sources

Annual Reports

CSRReports

CompanyWebsites

NewsSources

NGOWebsites

Various sources for our data

Stock exchange filings and other

ComprehensiveESG Database

ObjectiveESG Database

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. Client Loyalty

. Performance

. Shareholders Loyalty

. Resource Reduction

. Emission Reduction

. Product Innovation

. Employment Quality

. Health & Safety

. Training & Develop.

. Diversity

. Human Rights

. Community

. Product Responsibility

. Board structure

. Compensation Policy

. Board Functions

. Shareholders Rights

. Vision and Strategy

Economic Environmental SocialCorporate

Governance

ASSET4 ESG data framework

900+ Data Points

collected by analysts

250+ Key Performance Indicators

offered by default system

Grouped into 4 Pillars and 18 Categories:

Policy on Reducing CO2

CO2 Emissions

Board Member Salary

Policy on Reducing Emissions

CO2 per million USD of Sales

Total Board Compensation

Examples: Driver

Outcomes

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Order from chaos: moving towards transparency

ESG reporting is inconsistent

– Various reporting standards– Voluntary and often not audited– Different scopes, units and ways of reporting

(ratios, charts, graphs)

Timing and formatting of reports

– Annually, bi-annually or irregulary– 20% of companies reporting ESG performance only

on their websites

Relevance of information reported

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Seeing the Forest: Huge differences in companies‘ reporting

Seeing the Forest: Huge differences in companies‘ reporting

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Seeing the Forest

Huge differences in level of reporting

Transparency and Reporting: Regional and Sector Tendencies

– UK leads in reporting on total donations– Health Care, a laggard in terms of reporting in total donations– Health Care leads donations (amounts) by a large margin.

Historical trends

– Total Donations as percentage of net sales: No major changes over last 5 years, with Health Care consistently at the top and Industrials at the bottom.

Importance of getting a global picture

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0%

20%

40%

60%

80%

100%UK

Europe

Asia

North America

Health Care, a laggard in terms of reporting…Data availability – by sector and geography

Source: ASSET4

% of Companies Reporting on Total Donations

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0.0% 0.1% 0.2% 0.3% 0.4% 0.5%

Health Care

Consumer Staples

Energy

Financials

Utilities

Materials

Telecom. Services

Information Tech.

Consumer Discret.

Industrials2nd Quartile

3rd Quartile

1.4%

…While it is clearly a leader in the level of donations. Total cash and in-kind donations divided by net sales – by sector

Health Care median donations larger by a factor of 10 as compared to following sectors

Baxter0.34% of net sales

ABB0.01% of net sales

Total Donations Divided by Net Sales in 2006

Source: ASSET4

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0.0%

0.1%

1.0%

10.0%

2002 2003 2004 2005 2006

Health Care

Consumer Staples

Utilities

Materials

Financials

Telecom. Services

Energy

Consumer Discret.

Information Tech.

Industrials

No major changes over last 5 yearsTop donations (75th percentile) – by sector and year

Top donating Health Care companies donate around 1% of net sales

Top donating Industrial companies lower than any other sector

(log scale)

Total Donations Divided by Net Sales – Yearly 75th Percentile

Source: ASSET4

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Seeing the Trees:Focus on Pharmaceuticals

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Donations within the Health Care sectorPharmaceuticals are the leaders in reporting

Percentage of Companies Reporting on Total Donations

27.9%

18.4%

17.6%

15.2%

0.0%

0.0%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%

Pharmaceuticals

Health Care Equipment & Supplies

Biotechnology

Health Care Providers & Services

Life Sciences Tools & Services

Health Care Technology

Source: ASSET4

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Pharmaceuticals: Access to Product

Do Companies Commit to Implement the Right to Health?

Developing CountryLow IncomeAccess Policy

Source: ASSET4

Shire PLC

Schering-Plough Corp.

Novo Nordisk A/S

Astrazeneca PLC

Wyeth

Merck & Company Inc

Abbott Laboratories Inc

Johnson & Johnson

Novartis AG

Sanofi-Aventis

Glaxosmithkline PLC

Pfizer Inc

ELI Lilly & Company

Roche Holdings Limited

Bristol Myers Squibb Company

Bayer Schering Pharma AG

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Pharmaceuticals: Drugs for the Developing World

Who is Developing Drugs for HIV/AIDS, Malaria, and/or Tuberculosis?

AIDS

Source: ASSET4

Bristol Myers Squibb Company

Merck & Company Inc

Abbott Laboratories Inc

Johnson & Johnson

Novartis AG

Sanofi-Aventis

Glaxosmithkline PLC

Pfizer Inc

ELI Lilly & Company

Astrazeneca PLC

Shire PLC

Shionogi Limited

Schering-Plough Corp.

Bayer Schering Pharma AG

Malaria Tuberculosis

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Questions and Answers

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Contact Details

Eve Morelli

Client Services ExecutiveBahnhofstrasse 2 | P.O. Box 126 | 6301 Zug | SwitzerlandPhone: +41 41 729 30 40 | Fax: +41 41 729 30 50eve.morelli@asset4.com