Presentation by Silvio Mattanza


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Silvio Mattanza, Managing Director - Zegora Investment Management Ltd. - Switzerland

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Presentation by Silvio Mattanza

  1. 1. EU Policies as Value Drivers in Environmental Technology Silvio Mattanza - Zegora Investment Management TBLI Conference - Paris - 16.11.2007 © Zegora Investment Management Ltd - 2007 - All rights reserved
  2. 2. Agenda <ul><li>Introduction </li></ul><ul><li>The 6th Environmental Action Programme (EAP) </li></ul><ul><li>The EAP Today </li></ul><ul><li>Opportunities </li></ul><ul><li>Conclusions </li></ul>
  3. 3. Zegora Investment Management <ul><li>Based in Zurich and founded in 2005 </li></ul><ul><li>Specialized in environmental technology </li></ul><ul><li>Managing the Zegora Environmental Fund, a broad environmental technology fund </li></ul><ul><li>The Fund’s goal is the identification of sector leaders </li></ul><ul><li>Focus is put on the actual environmental impact of companies, less on formal criteria </li></ul>
  4. 4. Public Policy as a Value Driver Technology Availability Environmental Pressure Social Pressure Policy-Making and Implementation Value Creation
  5. 5. Agenda <ul><li>Introduction </li></ul><ul><li>The 6th Environmental Action Programme </li></ul><ul><li>The EAP Today </li></ul><ul><li>Opportunities </li></ul><ul><li>Conclusions </li></ul>
  6. 6. The 6th Environment Action Programme <ul><li>Framework for the EU’s policy-making 2002-2012 </li></ul><ul><li>Sets the priorities and guidelines for implementation of environmental policy </li></ul><ul><li>The central concern is to improve the environmental profile while maintaining the competitive position </li></ul>«The 6th EAP promotes full integration of environmental protection requirements into all Community policies and actions»
  7. 7. Priorities and Strategies <ul><li>The Environment Action Programme is split into four Priority Areas and seven Thematic Strategies </li></ul>Climate Change Nature & Biodiversity Environment & Health Natural Resources & Waste Soil Marine En-vironment Air Pesticides Urban En-vironment Waste & Recyling Natural Resources Priority Areas Thematic Strategies
  8. 8. From Research to Implementation <ul><li>Implementation of environmental policy requires completion of lengthy legislative processes </li></ul>EU Law Non-Legal Measures Thematic Strategy Implemen- tation National Law Research E A P
  9. 9. Agenda <ul><li>Introduction </li></ul><ul><li>The 6th Environmental Action Programme (EAP) </li></ul><ul><li>The EAP Today </li></ul><ul><li>Opportunities </li></ul><ul><li>Conclusions </li></ul>
  10. 10. Mixed Results of the Mid-Term Review <ul><li>Mid-term review of the EAP concluded in Q2 2007 </li></ul><ul><li>The EAP is still the right framework to drive progress </li></ul><ul><li>The implementation is broadly on track and a significant number of actions have been taken </li></ul><ul><li>However, many environmental pressures are increasing and the ecological footprint is growing </li></ul>«Despite the progress made, the magnitude of many environmental challenges is also increa-sing and Europe is not yet on the path towards a genuinely sustainable development.»
  11. 11. Status and Outlook Status Outlook Nature & Biodiversity Environment & Health Natural Resources & Waste Climate Change CO2 and GHG reduced but 2010 Kyoto targets not met Proposals on ETS beyond 2013 and Carbon Capture Policies largely in place but biodiversity loss not halted Finalize marine guidelines and combat illegal logging Air and water policy in place but lack of implementation Implement REACH and revise Emission Ceilings Directive Production and consumption patterns still unsustainable Propose procurement targets and report on ETAP progress
  12. 12. Agenda <ul><li>Introduction </li></ul><ul><li>The 6th Environmental Action Programme (EAP) </li></ul><ul><li>The EAP Today </li></ul><ul><li>Opportunities </li></ul><ul><li>Conclusions </li></ul>
  13. 13. Variety of Available Policy Instruments Regulatory Market-Based Voluntary Policy <ul><li>Input restrictions </li></ul><ul><li>Technology controls </li></ul><ul><li>Output quotas </li></ul><ul><li>Emission licenses </li></ul><ul><li>Taxes & Fees </li></ul><ul><li>Tradable permits </li></ul><ul><li>Deposit-refund systems </li></ul><ul><li>Performance bonds </li></ul><ul><li>Eco Liability </li></ul><ul><li>Subsidies </li></ul><ul><li>Eco-design </li></ul><ul><li>Eco-labels </li></ul><ul><li>Eco Management and Audit Schemes </li></ul>
  14. 14. Sources of Opportunity <ul><li>Concrete business opportunities are mostly created at the national level based on the EU framework </li></ul>EU Law Non-Legal Measures Thematic Strategy Implemen- tation National Law Research E A P
  15. 15. Opportunities at EU Level <ul><li>The Environmental Technologies Action Plan provides concrete technology driven measures across the EAP </li></ul>Climate Change Nature & Biodiversity Environment & Health Natural Resources & Waste Priority Areas <ul><li>Environmental Technologies </li></ul><ul><li>Action Plan and its Instruments </li></ul><ul><li>Performance Targets </li></ul><ul><li>Green Procurement </li></ul><ul><li>Market Instruments </li></ul><ul><li>Mobilization of Financing </li></ul><ul><li>Eco-technologies in Developing Countries </li></ul>
  16. 16. Instruments and Industries (1/3) Eco-design Caps & Limits Instruments EMAS Integrated Product Policy Integrated Pollution Prevention Control Voluntary Market Regulatory Type Electrolux, BWT, Nokia, Toyota Waste, Water, Appliances, Chemicals, Food, Packaging, Industrial Plants, Utilities Improve environmental performance through standards Company Examples Affected Sectors Performance Targets
  17. 17. Instruments and Industries (2/3) Life-cycle costing BAT Green purchasing Instruments EMAS Voluntary Market Regulatory Type ABB, Biffa, Veolia, Techem Energy, Infrastructure Services, Construction, Transport, IT Devices, Waste Leading by example Company Examples Affected Sectors Green Public Procurement
  18. 18. Instruments and Industries (3/3) Subsidies Tax incentives Tradable permits Instruments Loans & Bonds Voluntary Market Regulatory Type Vestas, Q-Cells, Rockwool, St. Gobain Renewables, Energy Efficiency, Transport, Construction, Housing Promote the take-up of environmental technologies and allocate cost correctly Company Examples Affected Sectors Market Instruments
  19. 19. Agenda <ul><li>Introduction </li></ul><ul><li>The 6th Environmental Action Programme (EAP) </li></ul><ul><li>The EAP Today </li></ul><ul><li>Opportunities </li></ul><ul><li>Conclusions </li></ul>
  20. 20. Conclusions <ul><li>The EAP is an EU-wide framework for environmental policy integration </li></ul><ul><li>The EAP is the right thing to do but requires more focus on implementation </li></ul><ul><li>Well implemented policies are able to generate significant value across many industries </li></ul><ul><li>Actual opportunities are mostly created at the national level </li></ul><ul><li>The EU framework serves as an ideal guide to identify trends and areas of competitive advantage </li></ul><ul><li>Environmental performance equals competitive </li></ul><ul><li>advantage </li></ul>
  21. 21. Appendix
  22. 22. Selected Links Environmental Technologies Action Plan European Environmental Law Website by the T.M.C. Asser Instituut Ecologic - Institute for International and European Environmental Policy EU Implementation Network EAP Homepage EU Environment Homepage
  23. 23. Zegora Contacts Silvio Mattanza Email: Contact Person [email_address] Email Website +41 44 800 80 83 Fax +41 44 800 80 80 Phone Zegora Investment Management AG Wunderlistrasse 47 8037 Zurich Switzerland Company Address
  24. 24. Zegora‘s Management Team <ul><li>Dr. Kurt A. Lambert, President of the Board of Directors </li></ul><ul><li>Founder of Harcourt Investment Consulting, member of the Advisory Board of the FTSE Hedge Fund Index. Doctor in Economics University of Lausanne, studies at Hofstra and University of Texas. </li></ul>Benoît Bitschnau, Member of the Board of Directors Former financial consultant with CSAM and corporate auditor with a multinational company. Degree in Economics from University of Lausanne, masters program in finance at the University of Lausanne. Silvio Mattanza, Managing Director Former technology consultant and contract manager with Accenture specializing in outsourcing of finance and administration processes, law degree from Universities of Zurich and Westminster.
  25. 25. Zegora Environmental Fund - Key Features <ul><li>A unique fund focused on companies offering technologies and services that benefit the environment </li></ul><ul><li>Excellent investment case based on increasing importance and awareness of environmental matters </li></ul><ul><li>The performance goal is to deliver superior long-term performance relative to a global equity portfolio </li></ul><ul><li>Global portfolio which is broadly diversified across companies, sectors and industries </li></ul><ul><li>Domiciled in Switzerland and regulated by the Swiss Federal Banking Commission </li></ul><ul><li>Launched in 2006 </li></ul>
  26. 26. Why an Environmental Fund? <ul><li>High awareness of the importance of the environment </li></ul><ul><li>Trend towards a greater awareness of the supply constraints of our natural resources </li></ul><ul><li>Trend strengthened by increasing global wealth and education levels </li></ul><ul><li>Pressure from governments, authorities and NGOs </li></ul><ul><li>Companies forced to be innovative and adhere to increa-singly tough environmental standards </li></ul><ul><li>Increased requirements to invest in environmental performance </li></ul>Increasing demand and tremendous opportunities For companies thinking ahead and focused on reducing ecological footprints
  27. 27. Balanced Allocation across Industries (1/2) Primary Categories (total 70%, 5 x 4 companies, 3.50% per company) Environmental benefits are inherent in the normal course of business Energy Alternative Secondary Categories (total 20%, 10 companies, 2.0% per company) Realization of benefits requires outstanding environmental performance Water Waste & Recycling Transport Rail Energy Classic Environmental Industrial Facility Agriculture & Forestry Transport Vehicles
  28. 28. Balanced Allocation across Industries (2/2) Growth Categories Both significant growth potential and substantial environmental benefits Energy Conservation Fuel Cells & Hydrogen Future Energy Pollution Control
  29. 29. Current Fund Performance Zegora Environmental Fund MSCI World FTSE4Good Total Return in % (EUR as of 31.08.2007) 0.34% 1.81% 4.06% YTD 0.14% 0.15% -0.43% 1 Month 11.94% 12.93% 14.73% Inception FTSE4Good (EUR) MSCI World (EUR) Fund
  30. 30. Risk Measures since Inception 7.86% 7.47% 4.81% Share Ratio 1.04 1.19 2.11 Volatility FTSE4Good (EUR) MSCI World (EUR) Fund
  31. 31. Why Invest with Zegora? A truly unique and structured approach allows us to invest in both today‘s and tomorrow‘s environmental leaders Our Approach The firm has a committed, experienced and proven team in the asset management space Our People Zegora Investment Management Ltd. is an independent boutique investment advisor focused solely on environmental, social and economic sustainability. This is our core and only business Our Focus
  32. 32. Disclaimer <ul><li>No Offer or Advice </li></ul><ul><li>The information in this document is not intended to and shall not in any way constitute an invitation to invest in any of the investment products that appear or are mentioned, nor should the information provided be construed as advice of any other type, for example of a financial, fiscal or legal nature. Investments in any products and other transactions referred to in this document must only be made on the basis of the offering document relating to the specific investment (e.g. Prospectus, Key Features or other applicable terms and conditions). </li></ul><ul><li>Sales Restrictions </li></ul><ul><li>The products and other transactions described in this document are destined for persons and companies with residence in Switzerland only and may not be available to residents of other countries, in particular to residents of the United States and the United Kingdom. </li></ul><ul><li>Risk </li></ul><ul><li>Investments can involve significant risks and the value of an investment may go down as well as up. It may not be possible to liquidate the positions in the relevant markets before a loss is sustained. Past performance is not indicative for future results. No assurance can be given that the investment objective of any product will be achieved or that substantial losses will not be suffered. </li></ul>