Corporate PowerPoint Presentation

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Occupational Health Safety
Socially Responsible Investment
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• What is Socially Responsible Investing (SRI)
• The integration of environmental and social and
  governance (ESG) factors into the investment
  decision making process.
• Issues include such things as environmental
  performance, relations with communities, human
  rights, and health and safety
• SRI investors range from individuals to many of
  the worlds largest pension funds and mutual fund
  companies

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Growth of SRI in Europe

• Retail SRI in Europe totals more than 48.7
  billion in assets increase of 102 from year
  before
• Institutional SRI in Europe totals about 2
  trillion

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Growth of SRI in US

• US2.71 trillion in assets, up 18 from 2005

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Double Bottom Line of SRI SRI investors integrate
ESG factors into their investment decision making
process for two main reasons. 1. Aligns
investments with the values of the individual or
institution. 2. To avoid risk
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• SRI Risk
• SRI investors believe that companies that
  effectively manage ESG factors (such as
  occupational health and safety) will be more
  profitable in the long run.
• Examples of Health Safety Risk
• Injuries and fatalities affect productivity
• Potential fines or lawsuits related to workplace
  accident.
• Reputation and ability to attract talented
  employees.

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Investment Policies Require Consideration of ESG
Factors SRI investors have policies in place
that REQUIRE investments to be consistent with
values and manage ESG risk OPSEU Pension Trust -
10 billion fund Statement of Investment
Policies and Procedures We will be vigilant
regarding the condition of workers employed and
citizens affected by the companies in which we
investwe support and encourage fair wages,
benefits, and working conditions for workers
employed by our assets.
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SRI and Microfinance MFIs increasingly attract
institutional and individual investors due to
their double bottom line
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• Examples of SRI Investments in Microfinance
• Calvert Investments invests approximately 25
  million in MFIs
• PGGM, large Dutch pension fund, committed US304
  million to the microfinance sector.
• Last week, PKA, the 15billion Danish pensions
  fund, announced planned investment in microfinance

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• Gap
• MFI are increasingly using sophisticated tools
  to evaluate social impact.
• Occupational health and safety is not typically
  being evaluated
• Socially responsible investors, from a
  values-perspective as well as from a financial
  risk perspective will increasingly want to know
  that the MFIs they are investing in or may
  invest in are considering safety and health
  issues in the loaning process.

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• Need
• For MFIs to attract investment dollars from large
  SRI funds, there will be increasing need for
• Consideration of health and safety issues in
  loan application.
• Regular monitoring of safety and health
  performance.
• Mechanisms that encourage continual improvement.
• Regular reporting.