DJSI 2012 Review Results A cooperation of S&P Dow Jones Indices and SAM
Content • Key Facts • Assessment 2012 • Overview of global and regional review results • Additional Resources 1
Key Facts – SAM Indexes • Cooperation between SAM and S&P Dow Jones Indices for the publication and licensing of the Dow Jones Sustainability Indexes (DJSI). • Launched in 1999, the DJSI are the first global indexes tracking the financial performance of the leading sustainability-driven companies worldwide. • Broad family of global, regional and country DJSI benchmarks. • 6 billion USD in DJSI-based investment vehicles including mutual funds, separate accounts, notes, as well as exchange traded funds (ETF), in 15 countries worldwide. • Local partnership with Korea Productivity Centre (KPC). 2
Key Facts – Dow Jones Sustainability Indexes (DJSI) Overview • Integrated assessment of economic, environmental and social criteria with a strong focus on long-term shareholder value. • Consistent rules-based methodology , primary research (direct contact to companies). • Focus on best-in-class companies. Yearly review and continuous monitoring of companies. • Assurance of the assessment process by Deloitte . 3
Assessment 2012 – DJSI Assessment Universe 2012 Number of invited companies • Total number of invited companies = 3,208 • DJSI World Universe = 2,500 • DJSI Europe Universe = 600 • DJSI North America Universe = 600 • DJSI Asia Pacific = 600 • DJSI Korea = 200 Number of assessed companies • Total number of companies analyzed = 1,544 • Completed questionnaires = 790 • Completed assessments based exclusively on public information = 754 5
Assessment 2012 - Criteria Changes (1) Criteria Key changes compared to 2011 Supply Chain For the 2012 assessment, SAM made a complete review of the criterion Management ‘Standards for Suppliers’ and based on this review the new criterion ‘Supply Chain Management’ was developed. The rationale for the new criteria is that companies are not only outsourcing production, services and business processes but also corporate responsibilities and reputational risks. This means that the risks and opportunities associated with the supply chain need to be managed carefully. The new framework consists of four major parts: supply chain awareness and risk exposure, risk management, sustainability strategy and opportunities in the supply chain and transparency with regards to supply chain risks and performance. Social / Environmental In 2012, for the first time, SAM has opened up part of the reporting criteria for Reporting company input in order to be able to assess reporting on materiality analysis as well as links between companies’ sustainability initiatives and their financial performance in a more comprehensive manner. At the same time, the focus on integrated reporting remains, as the questions are looking for reporting both in the Annual Report and in the Sustainability Report. Specifically, the new questions focus on reporting on frameworks for materiality analysis as well as specific examples relating to sustainability initiatives leading to cost savings and revenue generation for the company. 6
Assessment 2012 - Criteria Changes (2) Criteria Key changes compared to 2011 Labor Practice Indicators SAM believes that companies that have a long-term commitment to equal gender & Human Rights opportunities reap the benefits by turning the resulting senior management diversity into a competitive advantage. In this year’s assessment, the approach was refined and updated by looking at two main indicators for gender equality: retention of female talent and equal remuneration. Labor Practice Indicators In light of the “ UN Framework and Guiding Principles on Business and Human & Human Rights Rights ” (“the Ruggie framework”) which was endorsed by the UN Human Rights’ Council in June 2011, SAM introduced a new question on the topic. The question assesses the degree of awareness and adoption of the “Ruggie Framework”. Various sector specific In addition to the changes to the general criteria described above, a set of sector criteria specific and cross-industry criteria were introduced or significantly improved. These criteria include Strategy for Emerging Markets (for selected industrial sectors), Antitrust Policy (across several sectors), Fleet Management (airlines), Online Risks & Opportunities (media), Human Rights – freedom of expression & privacy (selected technology sectors) and Innovation Management (healthcare). 7
Assessment 2012 - Global Supersector Leaders (1) NAME COUNTRY SUPERSECTOR Bayerische Motoren Werke AG Germany Automobiles & Parts Australia & New Zealand Banking Group Ltd Australia Banks UPM-Kymmene OYJ Finland Basic Resources Akzo Nobel NV Netherlands Chemicals GS Engineering & Construction Corp South Korea Construction & Materials Itausa - Investimentos Itau SA Brazil Financial Services Unilever NV Netherlands Food & Beverage Roche Holding AG Switzerland Healthcare Siemens AG Germany Industrial Goods & Services 8 Effective as of September 24, 2012
Assessment 2012 - Global Supersector Leaders (2) NAME COUNTRY SUPERSECTOR Swiss Re AG Switzerland Insurance Telenet Group Holding NV Netherlands Media Repsol SA Spain Oil & Gas Koninklijke Philips Electronics NV Netherlands Personal & Household GPT Group Australia Real Estate Lotte Shopping Co Ltd South Korea Retail Alcatel-Lucent SA France Technology KT Corp South Korea Telecommunications Air France-KLM France Travel & Leisure Iberdrola SA Spain Utilities 9 Effective as of September 24, 2012
Assessment 2012 – DJSI Index Range Index Components Weighted by Free-float market cap Sustainability Score � � � � DJSI World 340 DJSI World Enlarged 592 � � � � � � � � DJSI World ex US 278 � � � � DJSI World 80 80 � � � � DJSI World ex US 80 80 � � � � DJSI Europe 166 � � � � DJSI Eurozone 96 � � � � DJSI Europe 40 40 � � � � DJSI Eurozone 40 40 � � � � DJSI North America 140 � � � � DJSI United States 117 DJSI North America 40 40 � � � � � � � � DJSI United States 40 40 � � � � DJSI Asia Pacific 154 � � � � DJSI Asia Pacific 40 40 � � � � DJSI Japan 40 40 � � � � DJSI Korea 52 DJSI Korea 20 20 � � � � 10 Effective as of September 24, 2012
DJSI World – Index Range DJSI World 340 Components DJSI World ex Tobacco 338 Components DJSI World ex Gambling 325 Components DJSI World ex Alcohol, Tobacco, Gambling, Armaments & Firearms 305 Components DJSI World ex Alcohol, Tobacco, Gambling, Armaments & Firearms, Adult 296 Components Entertainment DJSI World 80 80 Components DJSI World ex US 80 80 Components 11 Effective as of September 24, 2012
DJSI World – Largest Additions & Deletions Largest 10 Additions Largest 10 Deletions (Listed by descending Free Float Market Capitalization) (Listed by descending Free Float Market Capitalization) NAME COUNTRY SUPERSECTOR NAME COUNTRY SUPERSECTOR International Business Microsoft Corp United States Technology United States Technology Machines Corp Canadian National Railway Co Canada Industrial Goods/Svc GlaxoSmithKline PLC United Kingdom Health Care Target Corp United States Retail United Technologies Corp United States Industrial Goods/Svc Hennes & Mauritz AB Sweden Retail Telefonica SA Spain Telecommunications Hewlett-Packard Co United States Technology Duke Energy Corp United States Utilities Enbridge Inc Canada Oil & Gas UBS AG Switzerland Banks Linde AG Germany Chemicals ING Groep NV Netherlands Insurance Cenovus Energy Inc Canada Oil & Gas Mitsubishi Corp Japan Industrial Goods/Svc Baker Hughes Inc United States Oil & Gas Societe Generale SA France Banks Ecolab Inc United States Industrial Goods/Svc Dell Inc United States Technology 12 Values as of August 31, 2012
DJSI World – Selection 2,500 largest 340 Components companies of the 15% target Selection of top 58 DJSI Sectors Dow Jones Total market 10% in terms of DJSI World Global Stock cap coverage in 30 Countries Sustainability in Market Index each Review 2012: each sector 41 ADD / 41 DEL 58 DJSI Sectors supersector 52 Countries 13 Effective as of September 24, 2012
DJSI World – Performance Since Launch, 08/99 – 08/12 (EUR, Total Return) 140 Dow Jones Sustainability World Index (in EUR, TR) MSCI World (in EUR, TR) 120 100 80 60 40 Aug-99 Oct-01 Dec-03 Feb-06 Apr-08 Jun-10 Aug-12 14
DJSI Europe – Index Range Dow Jones Sustainability Europe Index (DJSI Europe) 166 Components DJSI Europe ex Alcohol, Tobacco, Gambling, Armaments & Firearms 145 Components DJSI Europe ex Alcohol, Tobacco, Gambling, Armaments & Firearms, Adult Entertainment 139 Components DJSI Europe 40 40 Components Dow Jones Sustainability Eurozone Index (DJSI Eurozone) 96 Components DJSI Eurozone ex Alcohol, Tobacco, Gambling, Armaments & Firearms 84 Components DJSI Eurozone ex Alcohol, Tobacco, Gambling, Armaments & Firearms, Adult Entert. 80 Components DJSI Eurozone 40 40 Components 15 Effective as of September 24, 2012
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