Investing with the Impact Indicator ENG

Drs Alcanne Houtzaager MA
Public Equity Impact Investor
Speaker on Impact Investing
Investing with the
Impact Indicator©

Impact Investing: definition
Investing in measured & benchmarked social and/or
environmental goals and financial returns.
Impact Investing is financially sustainable.
Impact Investing aims at upscaling impact,
preferably to the maximum, i.e. Global solutions
Drs Alcanne Houtzaager MA, Public Equity Impact Investor, Speaker on Impact Investing trends, Impact Investing News Blog.

Mapping Impact Investing
Classic (exclusive)
Philanthropic (exclusive)
Direct (exclusive and inclusive)
Indirect (inclusive)
Crowdfunding for Impact (inclusive)
(Informal investing (exclusive)
Drs Alcanne Houtzaager MA: Public Equity Impact Investor, Speaker on Impact Investing trends, Impact Investing News Blog

Impact Investing Universe
Basic needs & Impact catalysts
with
Intended & measured Impact

Impact Indicator©
0 = I just care about financial returns.
1 = I care about financial returns and do not invest in
harmful industries.
2 = I care about financial returns & Environment, Social
& Governance (ESG) risks.
(Formally there could -1 = I'll invest in anything: even illegal
weapon builders, totalitarian regimes etc.)
Inspired by the Sonen Capital § KL Felicitas Foundation portfolio model

Impact indicator©
3 = I care about financial returns & ESG opportunities.
4 = I care about financial returns & global threats &
solutions.
5 = I care about financial returns & peoples basic needs.
6 = I want to invest in impact & am willing to give up return.
Inspired by the Sonen Capital § KL Felicitas Foundation portfolio model

Investing with the Impact Indicator©
Collect online available basic data on the investment products:
Company & Profile: (core)activities & strategy, employment
(characteristics), stock data, investor relations information, etc....
Employment & Stock data
Sustainability: Corporate Social Responsibility or Environment-
Social-Governance: strategies, ambitions & implementation.

Investing with the Impact Indicator©
Collect online available free basic data on:
Transparency: reporting record, systems & standards such
as Global Reporting Initiative (GRI), UN Global Compact &
UN Principles for Responsible Investment, Sustainability
reporting & systems such as CDP (Carbon Disclosure Project)
or CDP Water Disclosure. Impact reporting and reporting on
relevant* Key Performance Indicators.*on the core activities,
impact & the Materiality of Corporate Sustainability data.
Sustainability indices, benchmarks & listings: (e.g. SRI,
sustainability or green indices, CSR Hub (+15.000 corps & &
sustainable-investment.org (2.600 corporations)
Awards & recognition: (external & sector reviews).

Who benefits?
Product level: brands, production lines etc.
In the future: Impact scaling ambitions & strategy.
Global level: issue & (fair trade) supply chain.

Who benefits?
Impact level: according to the Impact Indicator©,
note that an investment can partially achieve multiple levels.
E.g. an investment product with 25% health sector
investments reaches level 5 (basic needs) for 25%

Examples:
A Pennystock active in an impact sector (without labor
intensive reporting i.e. transparency procedures).
A Best in Class multinational active in impact sectors.
An ETP, Exchange Traded Product (or Fund), in the
impact sector: Health
A Sustainable ETP based on a Low Carbon Emmission
Index.

Example: Accsys Technologies
Accsys Technologies PLC: a British pennystock fund,
listed at London Stock Exchange and Amsterdam NYSE
Profile: (core)activity: production, sale and licensing of
Accoya® solid wood and the licensing of Tricoya® wood
elements technology. Development & commercialisation of
a range of transformational technologies for wood (chips,
fibres and particles) for use as class leading, environmen-
tally sustainable, construction materials.
Employment: 100 employees.
Stockdata: ISIN GB00BQQFX454 IEX:
http://www.iex.nl/Aandeel-Koers/247828/Accsys-Technologies.aspx

Sustainability: Accsys Technologies doesn't have a separate
sustainability page on its site. But an Impact report:(pdf, 32 pag.)
''Accsys aims to reduce the consumption of endangered
hardwood species and non-renewable, high carbon emitting
building materials. Its chemical technologies impart enhanced
properties of durability & dimensional stability to typically
fast-growing, sustainably sourced renewable forest
products. This is achieved with a lower carbon footprint –
taking a whole life view (in production, period of use and end-
of-life disposal) – without degrading resources of non-
renewable materials.' Source:
http://socialstockexchange.com/wp-content/uploads/2014/09/Accsys-2nd-Year-Impact-Report3110142.pdf

Transparency: Accsys is a small company and doesn't
use labor intensive reporting systems, but impact
reporting.
Sustainability indices & benchmarks: CSRHub puts it
with Forestry & Fishing companies at the 23rd
position (of
47) with low scores, but it is only partially rated. Part of
the ASN Bank and Triodos Bank investment universe.
Award: Market Development award 2011 TRADA.
Marketing of products and licences is impactant for
impact scaling.

Who benefits?
At product level: Accsys’s Technologies provides additional
customer choice.
Impact scaling: through an international distribution
network and licence agreements that encourage trade and
employment.
At global level: slower depletion of natural forestry and
other resources is seen as a contributor to environmental
preservation, improved carbon sequestration and reduced
harmful emissions. This also applies at country niveau:
where governments can influence behaviour through
legislation, regulation and local target setting.

Who benefits?
Impact levels: 3, 4 & 5.
Accsys Technologies is a 100% ESG opportunity
company (level 3), aiming at a worldwide threat:
deforestation (level 4) and nature preservation (level 5).

Example: Unilever NV/PLC
Unilever: A Dutch-British multinationaal listed at the London
Stock Exchange, Amsterdam NYSE & in the VS NYSE.
Profile: (core)activity: ''We meet everyday needs for
nutrition, hygiene and personal care with brands that help
people feel good, look good and get more out of life.''
Employment: 173.000
Stockdata: IEX Unilever AEX NL0000388619
Drs Alcanne Houtzaager MA, Public Equity Impact Investor, Spreker over Impact Investing trends, Impact Investing Nieuws Blog.

Example: Unilever
Transparency: 'we assess our progress against three
indices: UN Global Compact, GRI and UN Millennium
Development Goals (MDGs)'. Focus, KPI's: CO³ & Water.
Sustainability: Our purpose as a business is about hel-
ping to build a world where everyone lives well and within
the natural limits of the planet: Brands that offer balanced
nutrition, good hygiene and the confidence that comes
from having clean clothes, clean hair and good skin;
Products which are sustainably sourced and used in a
way which protects the earth’s natural resources;
Respect for the rights of the people and communities.
Source: Unilever/sustainability. VP Sustainable Business
& Communications Europe: Drs Truus Huisman.

Example: Unilever
Indices & benchmarks: Robeco SAM: Sector leader,
Best-in-Class (Food & Beveager) > Dow Jones
Sustainability Index (US), FTSE4Good (UK), Vigeo
(Frans). Op Sustainable-Investment.org: 23 indices and
18 fondsen.
CSRHub:
http://www.csrhub.com/CSR_and_sustainability_information/Unilever-NV
Unilever is not listed in the investment universe of
(Dutch super sustainable ) ASN Bank en Triodos Bank.
Awards: Unilever participates in a number of specialist
external corporate ratings and rankings.
https://www.unilever.com/sustainable-living/the-sustainable-living-plan/our-strategy/awards-and-recognition/

Who benefits?
Product level: Food, personal care, hygiëne and soaps:
http://www.unilever.com/brands-in-action/index.aspx
More elaborate at:
https://en.wikipedia.org/wiki/List_of_Unilever_brands
In the Future: it aims at Eco-efficiency in manufacturing
including resources used and waste created. Reducing
GHG across our entire value chain, water associated with
consumer use, and in agriculture and manufacturing, our
packaging without compromising on protection or safety.
At Global level: making our supply chain sustainable and
driving systemic change within the agricultural system.

Who benefits?
Impact level: 3, 4 and 5.
Impact levels: Unilever invests in ESG Opportunities
(level 3, https://www.unilever.com/about/innovation/latest-news/),
works on worldwide threats (level 4, with it's programme for
Eco-efficiency) and basis needs food, hygiëne and
personal care (level 5).

Example: iShares EUR 600 Health
Profile: The iShares EUR 600 Health aims to duplicate the
performance of the STOXX® Europe 600 Health Care Index.
Stock data: DE000A0Q4R36, risk 5 (as a sectoral ETF and
because it has a limited number of holdings). Eurozone 25%
and Switzerland, Denmark and the VK (75%).
Sustainability: The etf has no specific impact or social aims,
but these European holdings rank high in the Access to
Medicine Index which benchmarks their efforts to make health
care accessible and affordable for poor countries.

Example: iShares EUR 600 Health
Transparency: Holdings and distribution on:
ishares-stoxx-europe-600-health-care-ucits-etf-de-fund. As the
holdings are quite large, their transparency is quite high.
Sustainability indices & listings: Some of the corporations
are listed in European and Global sustainable indices.
Company profiles on CSR Hub & fund and index listings on
www.Sustainable-investment.org
Benchmarks: Impact wise the bi-annual most interesting is the
http://www.accesstomedicineindex.org/ranking

Who benefits?
Product/service level: Healthcare: pharmaceuticals
medication and therapies. The etf has no impact goals and
depends on the corporations ambitions and collaboration.
In the Future: De Health sector realizes that on the long run
more healthcare for more people is more sound thatn more
expensive health care for fewer people. Their efforts to
promote accessible and affordable health care show this.
Vaccination (preventive medicine) is a field followed closely
by the Access to Medecine Index (A2MI)
World level: Follow the A2MI, WHO initiatives and DNDI:
http://www.dndi.org/partnership/partners.html#Pharmaceuticals

Who benefits?
Impact level: 5
Impact: The corporations in the ETP work on a basic need:
health(care) and the index holdings do well on improving
accessibility & affordability of healthcare in poor countries.

BNP EasyETF Low Carbon 100
Profile: BNP EasyETF Low Carbon 100 Europe offers investors
immediate exposure to 100 European leaders in terms of carbon
emissions. The tracker aims to replicate, as closely as possible,
the performance of the Low Carbon 100 Europe® index (before
fees and taxation). Actually 111 companies. Factsheet:
Easyetf-low-carbon-100-europe. Sectors: Financials 19%
Health 12% (Roche, Sanofi, Bayer), also Oil&Gas 11% and
Tobacco. Eurozone, UK: 33%, Switzerland 11%.
Sustainability: The index is a product of Goodplanet.org/en
based on Carbon Emission Disclosures.
Easyetf/fundsheet. Risk: 6/7 Costs: 0,6% Frequency: 0.
Morningstar: Snapshot ISIN FR0010655597

BNP EasyETF Low Carbon 100
Transparency: The investment product is an ETF based on an
index assembled by Goodplanet.org/en based on Carbon
Emission Disclosure Reporting. This has evolved as an
environment standard, which is relevant for some corporations
core activities, but not for all from 'Materiality of Corporate
Sustainability' data point of view. However as the holdings are
very large corporations their lower Carbon Emissions contribute
significantly.
The ETF is a Sustainability index & benchmark. Note that iShares
(Blackrock) issued the MSCI ACWI Low Carbon Target Index in dec 2014. The ETP
exhibits a 78% reduction in current carbon emissions, and a 97% reduction in future
carbon emissions compared to a portfolio of broadly diversified global stocks. Profile:
50% USA, > 40% Financials & IT corps. Also General Electric, an energy corporation
and a major source of Carbon Emissions, but also very ambitious.
https://www.ishares.com/us/products/271054/ishares-msci-acwi-low-carbon-target-etf

Who benefits?
Product level: The companies included in the Low Carbon
100 Europe® index emit on average 38% less CO2 than the
300 largest European company by market capitalisation
before the last update of the composition in March 2010.
Now, with 21 new firms included in the Low Carbon 100
Europe index, the companies making up the index emit 43%
less CO2 than their benchmark universe on average. (April
2010). 42% less Carbon according to the website in 2015.
In the Future: Leaders inspire followers and pull laggards,
but there is no direct impact scaling target.
Global level: Less carbon emissions help the slow down of
climate transition and extreme weather (effects).

Who benefits?
Impact scaling: Selecting the 100 (111) carbon emission
reduction leaders inspires them to stay 'leaders', their
'followers' to increase carbon emission reduction activities
and the 'laggards' to undertake carbon emission reduction.
Impact levels: 2, 4 and 5.
BNP EasyETF Low Carbon Europe 100 corporations work
on E(SG) risks (level 2) causing worldwide climate
transition, a global threat (level 4).
The 12% Health corporations work for fulfilling a basic need
(level 5) listed in the http://www.accesstomedicineindex.org/
as top corporations making health accessible & affordable.

Read more on:
Op SlideShare Presentation:
http://www.slideshare.net/alcanne/impact-indicator-20-return-and-impact-english-43814173
SlideShare (pdf):
http://impactinvestingnews.blogspot.nl/2015/02/the-case-for-impact-indicator-for.html
Op Impact Investing Nieuws (blog):
http://impactinvestingnews.blogspot.nl/2015/02/the-case-for-impact-indicator-for.html
Or LinkedIn Pulse:
https://www.linkedin.com/pulse/case-impact-indicator-investment-products-alcanne-houtzaager?trk=mp-author-card

Contact:
https://www.linkedin.com/in/alcannehoutzaager
Twitter @Alcanne
Www.impactinvestingnews.blogspot.com
impactinvestmentnews@yahoo.com
Facebook: Impact-Investing-Nieuws

Investing with the Impact Indicator ENG

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