From challenges to opportunities

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From challenges to opportunities

• Elin Myrmel-Johansen
• Executive Vice President, Storebrand

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Agenda
State of the world
The business role
Experiences from Storebrand
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State of the world
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Agenda
State of the world
The business role
Experiences from Storebrand
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Growing debate on the role of business in society

• Misleading distinction between shareholder value
  and CR
• Diminishing trust in business
• Growing expectations for business solutions
• Continually evolving role

Debate fueled by major social challenges
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Radical shifts in thinking
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Large companies need to build social issues into
strategy in a way that reflects their actual
business importance. Social issues are not so
much tangential to the business of business as
fundamental to it. Ian Davis,
Worldwide Managing Director, McKinsey Company
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Tomorrow's winners
Level 3
Opportunities
Level 2
Responsibility
Level 1
Compliance
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Agenda
State of the world
The business role
Experiences from Storebrand
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Growing expectations- a stakeholder perspective
Employees
Society
Shareholders
Customers
Authorities
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Cutomers what do we know

• Retail
• Ethical asset management is an important criteria
  for 83 of the population (MMI, 2006)
• However few act this way and many find these
  issues complicated
• MMIs profile analysis (2007) CR most important
  for overall view
• Corporate
• 96 of municipalities believe ethical
  considerations are important when managing their
  pension funds
• Corporations and institutional investors

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Employees what do they say

• Pride, motivation and job satisfaction
• Attract, develop and keep the best competence
• Students value inspiring management, high ethical
  standards and a strong corporate culture

91 of Storebrand's employees believe that it is
important that we aim to be an industry leader on
CR (2006)
Fully agree
Partly agree
Partly disagree
Fully disagree
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Society and authorities

• Strengthened reputation and brand
• Positive media cover
• Top of mind partner/expert
• The authorities are showing a growing interest
  and engagement from environment to CR
• Increasing transparency (reporting) and pressure
  for regulations

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Shareholders and investors

SRI by pension funds could account for up to 15
of the UK stock market by 2009
Morgan Stanley and Oxford Analytica (2005)
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Reporting on progress
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CR goals and activities some examples

• Financial
• Return on equity, solidity, dividend etc.
• Qualifying for DJSI and FTSE4Good
• Social
• Customer satisfaction and availability
• Equal opportunities, HSE, employee satisfaction
• SRI and microfinance
• Environmental
• Energy and water consumption, waste sorting
• Climate footprint

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Group SRI standard
Landmines (2)Cluster munitions (8)Nuclear
weapons (12)
Corruption (12)
Human rights and labour rights (7)
Tobacco (13)
Severe environmental degradation (1)
10 worst performers in high risk industries (48)
96 companies are excluded from all Storebrands
investments (April 2008) Based on international
standards and norms UN, ILO, OECD, Ottawa,
Kyoto
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Smaller universe same returns(Storebrand
Global SRI and Global Institusjon against
reference index)
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Microfinance

• Availability of capital for poor people
• Commercial terms
• First investments in 2005
• Storebrand has invested USD 15 million in 5
  global funds

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• Storebrand's responsibility is to create value,
• but we are not indifferent to how this is
  achieved

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Storebrand shall be the leading and most
respected institution in the Nordic market for
long-term savings and insurance