Date: 14 November 2008 Eve Morelli – Client Services Executive TBLI – SRI and Transparency A Key to ESG Analysis: Seeing the Forest and the Trees

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”

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”

ASSET4 Products and Services Quick Overview ASSET4 ESG Database Rating System News Services Other Services One-Click ESG

Rating System

News Services

Other Services

One-Click ESG

ASSET4 Information Framework

Various sources for our data Publicly Available Data Sources Annual Reports CSR Reports Company Websites News Sources NGO Websites Stock exchange filings and other Comprehensive ESG Database Objective ESG Database

ASSET4 ESG data framework . 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 Social Corporate Governance 900+ Data Points collected by analysts 250+ Key Performance Indicators offered by default system Grouped into 4 Pillars and 18 Categories : Policy on Reducing CO 2 CO 2 Emissions Board Member Salary Policy on Reducing Emissions CO2 per million USD of Sales Total Board Compensation Examples: Driver Outcomes

Policy on Reducing CO 2

CO 2 Emissions

Board Member Salary

Policy on Reducing Emissions

CO2 per million USD of Sales

Total Board Compensation

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

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

Seeing the Forest: Huge differences in companies‘ reporting

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

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

Health Care, a laggard in terms of reporting… Data availability – by sector and geography Source: ASSET4 % of Companies Reporting on Total Donations

… 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 Baxter 0.34% of net sales ABB 0.01% of net sales Total Donations Divided by Net Sales in 2006 Source: ASSET4

No major changes over last 5 years Top 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

Seeing the Trees: Focus on Pharmaceuticals

Donations within the Health Care sector Pharmaceuticals are the leaders in reporting Percentage of Companies Reporting on Total Donations Source: ASSET4

Pharmaceuticals: Access to Product Do Companies Commit to Implement the Right to Health? Developing Country Low Income Access 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

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

Questions and Answers

Contact Details Eve Morelli Client Services Executive Bahnhofstrasse 2 | P.O. Box 126 | 6301 Zug | Switzerland Phone: +41 41 729 30 40 | Fax: +41 41 729 30 50 [email_address]

Eve Morelli

Client Services Executive

Bahnhofstrasse 2 | P.O. Box 126 | 6301 Zug | Switzerland

Phone: +41 41 729 30 40 | Fax: +41 41 729 30 50

[email_address]