Greening your Business for Greater Profitability

Global Summit of Women, Saturday 2nd June 2012Rébecca Michelot

MACRO - NEW ECONOMIC MODEL

• Forecast : China reaches US consumption 2031 (8% growth)

Energy & ResourceManagement

Health Food

Water

GREENING YOUR BUSINESS!

‘Many companies rely on natural resources and their activities can have a significant impact on the environment. But, they also have a crucial role to play in supporting conservation efforts and being part of the solution.Changes in corporate practice are essential. In today’s increasingly competitive world, consumers, employees, shareholders and stakeholders are demanding that companies demonstrate sound environmental practices and corporate responsibility’.

J. Leape, Director General, WWF International

1 WHAT IT MEANS TO BE A GREEN BUSINESS (1)

What is a “green business”?• Uses renewable resources

(environmentally sustainable) and holds itself accountable for the human resource aspect of its activities (socially responsible).

• Requires developing an attitude toward sustainability and practices that can be incorporated into its activities. 

• Means changing the way a business purchases, develops, produces, and provides products and services so it has a positive impact on the environment.

• The planet = a warehouse of goods.  When we use the goods, we have to pay for them with money or fair trade.  When we use the environment’s resources, you have to pay the environment back to offset your consumption.

• Decide what shade of green you want your business to be.

What terms are commonly used?

• Sustainability: refers to three areas, environmental, economic, and social. 

• Environmental Sustainability refers to maintaining the quality and longevity of environmental resources used by the business.  This can include energy, water, waste management, emissions, etc. 

• Economic Sustainability includes the overall financial model and productivity of a company.  The income and expenses must provide for a financially sustainable business. It also refers to evaluating the products and services you purchase to determine if they are “more sustainable” or “less sustainable”. 

1 WHAT IT MEANS TO BE A GREEN BUSINESS (2)

• Social Responsibility refers to social impact of a business.  It includes ethical principles, giving back to society, health & safety, respect for human rights, equal opportunities, fair compensation, and ensuring a high quality of life.

• Carbon Footprint refers to your impact on the environment.  It refers to measuring how much carbon dioxide does a particular activity, purchase, or product produces.

• Carbon Offsets or Carbon Credits refers to offsetting your carbon footprint instead of reducing your own carbon footprint. Means purchasing carbon credits from a company that offsets carbon emissions. 

1 WHAT IT MEANS TO BE A GREEN BUSINESS (3)What terms are commonly used?

• Heard of global warming and want to learn what they can do about helping to slow the process. 

• See other businesses going green and aspire to be as successful. 

• See it as a market trend while others realize the actual benefits to the planet and future generations. 

Why do businesses become “green”?

1 WHAT IT MEANS TO BE A GREEN BUSINESS (4)

• learning curve where business owners learn how other businesses have changed their business practices, then make changes to their own practices that are appropriate to their line of business.  It can involve a certification process.

• Becoming a certified green business can be difficult and confusing, as there are no commonly defined standards. 

• Compliance with all environmental regulations • Pollution prevention • Conserving energy, water and other natural resources • Reducing waste • Controlling chemicals & hazardous materials • Tracking resource use • Educating employees and customers

How do businesses become ’green’ ?

1 WHAT IT MEANS TO BE A GREEN BUSINESS (5)

• Turn off lights, install timers or motion sensors • Replace incandescent bulbs with Compact Florescent Lights (CFLs) • Buy in bulk or buy items with reduced / recyclable packaging • Reduce car use, consolidate car trips into one, carpool, ride a bike,

take public transit • Keep automobiles well maintained and recycle automotive fluids • Install low-flush toilets and water restrictors on faucets and

shower heads • Improve Landscaping – Repair broken sprinkler heads, adjust

timers, install a drip system, eliminate over watering and runoff, plant drought resistant plants, use mulch to reduce evaporation.

• Avoid using disposable products, paper plates, plastic utensils, napkins, paper towels, cups

A few ideas to reduce energy usage, water consumption and waste:

2 REDUCE CONSUMPTION, WASTE AND POLLUTION (1)

• Choose longer lasting products • Buy energy efficient appliances and durable goods • Buy locally-produced goods and buy from local stores • Avoid purchasing products that have a lot of packaging or have to

be shipped to you • Change the chemicals you purchase to ones that have lower

impact on the environment, including cleaning supplies, paint, pest control, fertilizer, etc.

• Chemical Management: Reduce the amounts of hazardous chemicals that you purchase and store to the absolute minimum. 

• Have appliances cleaned and serviced regularly to improve performance

• Check the "Power Save" mode on all electronic devices, including computers, printers, fax machines and copiers.

A few ideas to reduce energy usage, water consumption and waste:

2 REDUCE CONSUMPTION, WASTE AND POLLUTION (2)

• Purchase reusable products, such as rechargeable batteries, washable towels

• Save packing material you receive and reuse for shipping • Use white boards and e-mail to replace sticky notes • Print on both sides, write notes on scrap paper • Reuse binders and file folders • Use reusable shopping bags, provide reusable bags to your

customers • Use reseal able containers instead of plastic bags • Refill ink cartridges • If you can’t reuse an item, sell it or donate it so someone else gets

use out of it

Ideas for reusing items:

3 REUSE WHAT YOU HAVE

• Save packing material you receive and reuse for shipping • Use white boards to replace sticky notes • Recycle toner cartridges and buy refilled toner cartridges • Recycle paper, cardboard, plastics, cans, bottles, etc • Recycle e-Waste* – Televisions, Cellular Phones, Computers,

Consumer Electronics • Recycle Paint – Can be recycled by reprocessing or reblending • Choose to buy recycled and recyclable products • Save yard waste and organic kitchen scraps for use in Composting

Ideas for recycling

4 RECYCLE EVERYTHING YOU CAN

• Many small businesses think in terms of short term cash flow. 

• Challenge comes in retraining to think in terms of the long term benefits. 

• Green products can cost more short term money up front, but will typically save money in the long term.

• Have to assess each of your purchases to determine where going green is a more cost effective choice for your business.

The cost of not going green• The reality of today’s green market trend is that choosing not to go

green can cost you customers and potentially cost you your business! 

The cost of faking it• Consumers are smart and their perception of your values is an

important factor. • Word of mouth is a powerful tool that can help make or break a

business. 

Myth: Going green will cost my business more money

5 LEARN HOW GOING GREEN CAN SAVE MONEY

• Develop a green Mission, and Values statement State what you believe, your company’s “green” behavior, your core priorities and purpose for going green, and how your organization rises above others by being green.

• Integrate “green” into the business planClearly state the ways in which your products or service offerings will be green as well as how the way you do business will be green. 

• Promote being green on your website : add a separate web page that outlines all that you do to be green.  Provide links to any green organizations you belong to. 

• Add a logo and tag line to promotional materialsAre you certified?  Say so!  Something as simple as ‘Company name’ is a certified green business” will get the point across succinctly. 

6 GREEN YOUR BUSINESS FROM THE GROUND UP

• Green your marketing effortsGet a business website and e-mail address.  Have business cards, brochures, flyers printed onrecycled paper and use an environmentally responsible print shop. Leverage e-mail, telephone, forums, blogs, and online advertising technologies to help promote your business instead of printedmedia and mailings. 

• Green your purchases : buying green materials, products and services from local certified green businesses keeps the cycle going and helps you stay green. 

Green your bills Send electronic bills or e-mail . PDF invoices to your clients instead of sending printed copies in the mail.  Develop online forms instead of paper ones, scan in forms or contracts and e-mail them. 

• Make it easy and obvious : provide clearly marked recycle bins in convenient locations.  Provide recyclable materials next to each printer/copier/fax machine, etc.

6 GREEN YOUR BUSINESS FROM THE GROUND UP

• Cover the five major areas:– Environmental Compliance : Health, Fire,

Air Quality, Wastewater/Storm Drains– Waste Reduction – Pollution Prevention (includes Hazardous Materials/Waste

Management) – Water Conservation – Energy Conservation

6 GREEN YOUR BUSINESS FROM THE GROUND UP

• Educate and encourage your employeesDevelop a training program that shows ways employees should Reduce, Reuse and Recycle.  Include steps such as turning off lights in rooms that aren’t being used, recycling paper, cans, bottles, and make sure to cover proper equipment use, such as power saving settings on equipment.

• Educate and encourage your customersThrough the sale of your products or services, you can let your customers know the importance of going green. 

• For larger employersEncourage car pooling, mass transit, biking and walking. Provide a shuttle service to large offsite events.  Provide lockers and showers for employees who walk/jog/bike to work. This also helps encourage healthy exercise habits on breaks. Offer a secure location to store bicycles.

7 ENVIRONMENTAL EDUCATION & NETWORKING

Source: http://www.startupnation.com/

What is One Planet Leaders?• One Planet Leaders is a program which brings together cutting

edge business and sustainability knowledge, using inspirational speakers and cases from all over the world.

• is delivered jointly by WWF and IMD, one of the world's top-ranked business schools.

• The partnership on One Planet Leaders allows IMD and WWF to apply the synthesis of their respective expertise to some of the world's most critical challenges.

• This program delivers the latest and most relevant information on sustainability, but also with a sharpened set of leadership, business strategy and change management tools of world class excellence.  

• Benefits : embed sustainability into the heart of business, turn sustainability into a driver of innovation, develop ability to lead change

8 HOW TO ? A FEW EXAMPLES

PAST PARTICIPANTS

One Planet Living

• One Planet Living is a global initiative based on 10 principles of sustainability developed by BioRegional and WWF.

• It is a vision of a sustainable world, in which people everywhere can enjoy a high quality of life within the productive capacity of the planet, with space left for wildlife and wilderness.

• Organisations around the world are using the one planet living approach to take measurable steps towards genuine sustainability. From zero carbon buildings to procurement policies that support the green economy, one planet living solutions are cost-effective, creative, inspirational and replicable.

• Http://www.oneplanetliving.org/index.html

8 HOW TO ? A FEW EXAMPLES

One Planet Living – example of B&Q

• B&Q, UK’s largest home improvement and garden retailer, part of the Kingfisher Group.Working with BioRegional to reduce the environmental impact of its activities, leading to a 90% cut in direct emissions by 2023. To meet this stretching target, all stores will need to be zero carbon and emissions from transport cut by at least 50%.

• impressive progress: absolute reduction of 20% in its CO2 emissions against the 2006 baseline and now sustainably sources 100% of its timber.

• Sustainability is one of B&Q’s seven key business plans and progress is reported to the Board of Directors.

• Also helping its customers to reduce their environmental impact through their 5,500 strong One Planet Home product range and an ecological footprint calculator.

8 HOW TO ? A FEW EXAMPLES

3M’s Sustainability Innovation Machine

• $30 billion company – active in displays and graphics, electronics, health care, safety & security, transportation industry, manufacturing & industry, office, home & leisure

• Launches an average of 20 new products every week!• Role model of how to manage innovation• Pollution Prevention Pays (3P) program, saved many billions of $

over 36 years:– Slashed toxic releases by 99% and greenhouse gas emissions

by 72%– Only company that has won the EPA’s Energy Star Award

• http://solutions.3m.com/wps/portal/3M/en_US/3M-Sustainability/Global/VisionHistory/About/

8 HOW TO ? A FEW EXAMPLES

9 HOW TO ? THE WORLD OF SUSTAINABLE FINANCE

Getting back to you asap.

We talk about SRI more and more…

WHAT IS IMPACT INVESTMENT?

• Investments intended and designed to:– create positive impact beyond financial return, – have positive social and/or environmental consequences

• IMPACT INVESTING questions if, to maintain profitability, your products or services:– Worsen, Maintain or Improve Social and Environmental

Balance!• Motivation ?

– Effective way to protect and increase wealth– Legacy for future generations– Towards enhancing the effectiveness of philanthropy– Living one life-integrating investment– Achieving personal fulfillment– Strengthening family bonds & Safeguarding the future of the family

Source: guide to impact invetsing for family offices and HNWIs 2011 – Julia Balandina Jaquier

General overview

The European responsible investing fund

universe totals EUR 129.49 billion, across a

total of 1,236 investment fund vehicles;

France and Luxembourg as domiciles account

for about half overall;

When it comes to selecting a particular

theme of investment, asset managers and

their investors tend to favour the environmental

sectors.

KPMG categorisation of Responsible Investing

By domicile

By category

33

The brand of a company can sometimes represent an important part of the stock exchange value

Sources: Bank Sarasin, Datastream and Marketing Week 2011

“It takes 20 years to build a reputation and five

minutes to ruin it. If you think about that, you'll do

things differently.” Warren Buffet

A GROUP SPECIALIZED IN FINANCE…and sustainable finance!

• Founded in 1990, the company belongs to Mr. Ferrari’s family, who is the founder, and 21% belong to an important institutional fund close to the government.

• 22 team members offering their expertise to both private and institutional clients.

• Monitoring, advising and managing CHF 50 billion in assets.

• Geographical location of clients: Switzerland and Worldwide

• Office locations: Vevey, Head Office & Geneva, Switzerland

• Fund management based on multi-management, multi-style investment.

• Providing financial seminars, courses and publications to improve knowledge and transparency of social security in Switzerland.

ENGAGEMENT FOR SUSTAINABLE INVESTMENT

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Notre part de solutions d'investissements dans le développement durable

ENGAGEMENT FOR SUSTAINABLE INVESTMENT

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Living Planet Fund - Global Environment

Initial universe

Financial Filter

water, renewable energies, environmental consulting, energy efficiency, sustainable mobility, ecological materials,

environmental chemistry and biology, waste management, natural resources management and support to environmental technologies

TechnologyFilter

Armament, alcohol, tobacco production

Hazard games, nuclear,genetic engineering in natural ecosystems, fossils energies.

Exclusions criterias

LPF

Living Planet Fund - Global Environment

Living Planet Fund - Global Environment

• Launched in March 2011, the Living Planet Fund – Global Environment is a Luxembourg registered fund investing in global equities with a focus on environmental technologies. The fund has the ‘European passport’ and is compliant with European Union UCITs regulations.

• This single theme (Environmental Technology) fund offers retail and institutional investors the opportunity to participate in a promising investment theme with strong growth potential.

• The fund has a long term investment strategy and the investment process includes the following three steps:1. Definition of the environmental technology universe.2. Assessment of companies against stringent financial criteria.3. Portfolio construction based on extra financial criteria.

• Through this method, a portfolio is constructed, constituting 40 to 60 companies that have a proactive commitment to environmental and social issues and which are leaders in their industry sector.

• The investment themes covered are: water, renewable energies, environmental consulting, energy efficiency, sustainable mobility, ecological materials, environmental chemistry and biology, waste management, natural resources management and support to environmental technologies.

Value as of 31 December 2011

AUM: EUR 17.112.584,59 NAV: EUR 1040.09

Performance sur le trimestre: 12.35% Performance relative sur le trimestre: + 3.88%

Sociétés en portefeuille: 45 Liquidités: 1.81%

Ventes: N/A Achats: 3M (nouvelle position), LEM, ST-Gobain, Emerson Electric, DSM, Philips, Mayr-Melnhof Karton, Regal- Beloit, Schneider Electric, Vossloh, Wacker Chemie, Wasion Group, Grontmij.

PE moyen: 16.5

L’ensemble des valeurs données dans ce rapport sont dans la monnaie de base du fonds (EUR)

Daily Performance 31.12.2011 - 31.03.2012

Top 10 au 31.03.2012

Graphique absolu Graphique relatif

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MSCI Daily TR Net World USD (EUR) Living Planet Fund - Global Environment B

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MSCI Daily TR Net World USD (EUR) Living Planet Fund - Global Environment B

JOHNSON MATTHEY Environmental chemistry 4.64%KYOCERA CORP Renewable energy 4.09%UMICORE S.A. NEW Ecological material 3.95%SGS S.A. Sustainability advisors 3.91%DANAHER CORP Water management 3.73%KONINKLIJKE DSM Environmental biology 3.69%DENSO CORP Ecological transportation 3.67%AIR LIQUIDE Environmental chemistry 3.56%GEBERIT AG Water management 3.55%AIR PROD. CHEM Environmental chemistry 3.45%

Graphique absolu Graphique relatif

Performances mensuelles sur les 12 derniers mois

Performances mensuelles mai.11 juin.11 juil.11 août.11 sept.11 oct.11 nov.11 déc.11 janv.12 févr.12 mars.12 avr.12MSCI Daily TR Net World USD (EUR) 1.05% -2.55% -0.94% -7.23% -2.11% 6.41% 1.17% 3.71% 4.13% 2.64% 1.48% -0.37%Living Planet Fund - Global Environment 0.89% -2.31% -3.45% -8.95% -5.53% 5.58% -0.61% 0.40% 6.39% 3.63% 1.91% -0.17%Différence -0.17% 0.24% -2.51% -1.72% -3.42% -0.83% -1.78% -3.31% 2.26% 0.99% 0.43% 0.20%

30.04.2011 - 30.04.20126.88%-3.29%-10.17%

5060708090

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MSCI Daily TR Net World USD (EUR) Living Planet Fund - Global Environment FTSE EnvOpp All-Share

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MSCI Daily TR Net World USD (EUR) Living Planet Fund - Global Environment FTSE EnvOpp All-Share

Ratios financiers

Classement Best Classement Classement Best ClassementMean MeanWorst Worst

2 / 79 27.84% 7 / 79 26 / 79 1.66 48 / 79-32.83% 1.01-78.52% 0.04

2 / 79 5.21% 7 / 79 20 / 79 -0.02 17 / 79-8.79% 1.27-27.26% 2.54

18 / 79 4.00% 6 / 79 9 / 79 1.00 1 / 7922.13% 0.6543.80% 0.11

2 / 79 0.68 16 / 79 60 / 79 -0.04 79 / 79-0.48 0.71-1.20 1.00

1 / 79 0.00 8 / 79 27 / 79 23.69% 65 / 79-0.01 14.28%-0.02 3.86%

31 / 79 -0.01 20 / 79 24 / 79 -3.94% 6 / 791.09 -20.58%1.77 -53.29%

16 / 79 1.00 1 / 79 17 / 79 0.00 1 / 790.80 0.13-0.04 0.27

16 / 79 1.00 1 / 79 1 / 79 0.79 14 / 790.66 -0.430.00 -1.41

2 / 79 74.14% 20 / 79 11 / 79 -3.94% 17 / 7949.63% -41.33%34.48% -60.68%

Performances et positionnement dans les quartiles sur la période 30.04.2011 - 30.04.2012

38 / 124 15.28% 12 / 124 avr.11 mars.12 avr.12-13.17%-74.20%

1 2Performance

totale -3.29% 6.88%Position dans les quartiles

Ratio Gérant Benchmark

1

Performance totale

0.83

1.00

60.34% 53.45%

Corrélation Bull 1.00

0.80

21.87% -8.27% 1.14 1.00

1.13 1.00

Beta Bull

Beta Bear

Corrélation Bear

Meilleur mois

Pire mois

Information Ratio (XS)

Perte maximale

Alpha

Beta

Corrélation

R2

0.00 0.00

1.04

% mois positifs

0.80

Performance annualisée

Volatilité annualisée

Ratio de Sharpe

4.18% -1.77%

18.83% 16.23%

0.09 -0.26

0.90 1.00Tracking

Error (XS)

1.00

Ratio

0.08 0.00

0.79 0.00

1.00

16.12% 11.38%

-16.21% -10.42%

-33.39% -35.00%

BenchmarkGérant

Thank you for your attention!

Rébecca MichelotDirector, Wealth Management Department

CONINCO WEALTH MANAGEMENT SAQuai Perdonnet 5 Quai des Bergues 231800 Vevey 1 1201 Geneva Switzerland SwitzerlandT +41 21 925 00 33 T +41 22 732 7131coninco@coninco.ch