Struktur der Zusammenarbeit

1
IWG Spring Symposium April 1st 2008, London
Ethos Swiss Foundation for Sustainable
Development Jean Laville Deputy
Director Ethos, 2 Place Cornavin, Case postale,
CH-1211 Genève 1 Ethos, 32 Gessnerallee, CH-8001
Zürich tel. [phone] - Fax
4122-716.15.56email info_at_ethosfund.ch -
www.ethosfund.ch
2
Ethos

• Ethos Swiss Foundation for Sustainable
  Development
• Created in 1997 by two pension funds, currently
  composed of75 institutional investors.
• Objective To promote socially responsible
  investment (SRI)
• Role of think-tank
• Ethos Services SA
• Ethos Services is fully owned by the Ethos
  Foundation.
• Objective To offer various SRI services
• Role of do-tank

3
The objectives of Ethos (Charta, 1997)

• 1. To invest primarily in companies that
  contribute to sustainable development.
• 2. To exercise shareholder voting rights
  systematically, in conformity with corporate
  governance codes of best practice.
• 3. To engage in constructive dialogue with
  companies regarding the requirements of
  sustainable development and corporate governance
  best practice.

4
Ethos Services

• Advisor of Ethos investment funds
• Ethos Institutional Investment Fund (CHF 1100
  Million)
• Pictet-Ethos (CH) Swiss Sustainable Equities (CHF
  180 Million)
• Asset management and SRI advisory mandates (CHF
  1050 Million)
• Shareholder meeting analysis service with
  administrative assistance for voting execution
  (member of ECGS)
• Engagement programme to raise company awareness
  of sustainable development issues and good
  corporate governance best practice (Ethos
  Engagement Pool, Partnership with Phitrust )

5
What is SRI?

• Socially Responsible Investment is about managing
  a tension
• Environmental and social considerations can be
  perceived as antagonist to short term
  maximization of stock performance of firms
• Extra-financial dimensions have material impacts
  for people and the planet, but as they have no
  price, they are not included explicitly in the
  mainstream decision process
• Environmental and social ratings are constructed
  in order to asses the positive and negative
  externalities of firms with regard to these
  dimensions
• Socially Responsible Investment is not about
  making higher returns
• If extra-financial data allow superior returns
  there is no tension and no place for ethics.
  Business as usual approach will apply

6
GM Nestlé (14.4.2005)Ethos Group Shareholder
Resolution

• Proposition for changing articles of association
• Propose separation of Chairman and CEO positions
• (36 for, 13 abstain, 51 against)

• In Europe, shareholders resolutions were until
  recently perceived to be antagonist from the
  board point of view
• Situation is evolving it is becoming a natural
  way to ask other shareholders/co-owners their
  view on particular topics (shareholders rights,
  ESG factors, remuneration policy)
• 2008 AGM New CEO and new articles of
  associations

7
EGM UBS (27.2.2008)Ethos Group Shareholder
Resolution

• Proposition for requiring a special external
  audit on subprime crisis
• 10 questions to be included in a special report
  coordinated by a Swiss judge
• (45 for, 4 abstain, 51 against)

• Good contact with UBS during the process
• Other shareholders appreciate the opportunity to
  use this opportunity to better understand the
  information disclosed by the board on the reasons
  for the subprime-related losses
• After EGM Agreement with UBS on access to report
  required by authorities

8
Ethos Engagement-Pool (EEP)

• Objective To engage in dialogue with companies
  on the following topics (target 100 Swiss
  companies)
• Good corporate governance
• Environmental and social responsibility
• Choice of themes Defined by the Pool members
• Universe Swiss listed companies
• Implementation and communication Ethos Services
• Financing Each Pool members contribution is
  proportional to its Swiss equities under
  management (13 Pension Funds owning about CHF 50
  billion)

9
Phitrust and Ethos have joined forces for
shareholder engagement in Continental Europe

• EURO ACTIVE INVESTORS is a Shareholder Engagement
  Mutual Fund invested in European stocks.
• PhiTrust Active Investors and Ethos co-chair the
  Technical strategic Committee which proposes
  engagement initiatives for each European company
  held in the portfolio. (30 stocks spread across
  10 European countries)
• With its active shareholder policy implemented by
  PhiTrust and Ethos, EURO ACTIVE INVESTORS aims to
  improve companies governance, environmental,
  social and human rights practices as well as
  their local/regional community   bottom of the
  pyramid  investment strategies.