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SCR5002020 Edition SDG Commitment Report Empowering Investors on Both Profit and Impact Editor: Roland Schatz
% of companies focusing on the SDGs 100 50 0 2017 2018 2019
Companies most visible on the SDGs in 2019
Inditex Schneider Electric Cemex Banorte Total 0 2000 4000
Most visible SDGs in 2019
SDG13 Climate Action SDG3 Good Health SDG12 Responsible Consumption SDG16 Peace & Justice SDG8 Decent Work 0 1000 2000 3000 4000 5000 6000 7000 8000 Allianz Global Corporate & Specialty Allianz Reputation Protect Protecting your company’s reputation in a crisis
204 This Sustainable Development Goals Commitment Report (SCR) is based on
500 of the world’s largest companies with a combined market cap of more than 25 trillion USD
All 484,927 statements in 500 annual reports issued by these large corporations in 2017 and 2018 were categorized by human analysts.
All 2,088,092 reports All 1,097,967 quotes on these 500 from 2001 – 2018 by companies from 2001 financial analysts in - 2018 in international international business print media business print media (e.g., FT, WSJ, on these 500 stocks Handelsblatt, etc.) and more were were analyzed. analyzed.
2 Methodology & benefits of UNGSII rankings: Creating transparency on the SDG-related disclosures of companies
SDG/ESG Media Impact Analysts Impact Performance • UNGSII analysts read • Analysis of business and categorize the media and how they • Analysis of analyst • Stock prices annual reports of report on these quotations in key • Bond prices companies and central companies financial publications • Sales banks according to • Direct/indirect references (WSJ, FT, etc.). • Net Pro Score ™ direct and indirect • Compare • Perception of financial • Employer rankings references to the journalists/other and non-financial value SDGs stakeholders vs. analysts drivers
Creating UNGSII Enhancing Helping transparency Supporting the businesses Accelerating for investors, informed relevance of to manage the financial customers, decisions corporate their impact of and reporting reputation the SDGs civil society
3 Evidence for a large-scale shift in what is understood as value creation
The United Nations’ 17 Sustainable Development Goals (SDGs) provide a unique framework to map investment risks and opportunities on a global scale beyond culture, language, and political boundaries through 2030. It is the first time in history that targets and needs have been agreed on by a global community of more than 190 countries.
More than 85 percent of the largest global listed corporates on different continents have referred to sustainability issues in their recent annual financial reports, addressing one or more of the SDGs or its content. Mapping these strategic commitments in the financial reports provides investors and clients with a unique, additional layer to make better informed buying decisions, and investment allocations while gaining a “patience premium.”*
Why does it make sense to align with the SDGs? • Companies with better ESG scores on average have lower refinancing costs, higher product price margins, lower HR talent turnover, and more loyal customers. • Asset managers that embrace the SDGs are increasingly seen as the better managers, especially with a younger and well-educated customer generation. Using the SDG agenda to promote change at clients and investments can help the financial industry become a catalyst of change. 4
Source: UNGSII SCR500 report 1/2019; * see Trust Meltdown X, 1/2019 UNGSII & OEKOM (ISS) rankings and indices help move markets by empowering profits
The Problem until 2017: Trend 1: Performance of Only 30-60% of a company’s value is the ESG-based OEKOM (ISS) Prime Portfolio disclosed in their annual report according to Professor Eccles of Harvard Business School and PWC. On top of this, the inability to also compare non-financial performance as part of a consistent analysis framework is also missing for global investors. Over time, this has led to poor investment decisions that have equally weighted repeatedly resulted in financial crises. The last one, in 2008, caused a major trust meltdown due to poor governance and a lack of standards. Trend 2: Visibility of quoted financial analyst The Solution: statements on ESG 193 heads of state signed the SDGs on behalf of all stakeholders in September 2015. The UNGSII Foundation creates unique transparency on the progress of both countries and companies. Leading rating agencies like OEKOM (ISS) prove that investing in companies with a track record in sustainable behavior (ESG) creates added value (see Trend 1). Combining UNGSII’s curated analysis of the global corporate commitments to the Trend 3: Share of fired CEOs SDGs with due diligence on their ESG that lost their jobs because of performance executed by OEKOM (ISS) ethical issues helps investors make better informed decisions about the financial and social impact of their investments. Trend 2 indicates that financial markets embrace this concept. Trend 3's review of today's management being fired for lack of ethical commitment could transition to a review of tomorrow's CEOs being fired for their lack of commitment to the SDGs. 5
Source: Oekom research 2017, Media Tenor 2017, Strategy &, manager magazin 2019 results show ongoing increase in visibility of the SDGs
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0% SDG 1 SDG 2 SDG 3 SDG 4 SDG 5 SDG 6 SDG 7 SDG 8 SDG 9 SDG SDG SDG SDG SDG SDG SDG SDG 10 11 12 13 14 15 16 17
2017 2018 2019
Over 85% of the largest 500 global response to stakeholder interest in corporations now disclose non-financial corporate responsibility and socially information on the United Nations positive behavior. Sustainable Development Goals as part of their legally-binding annual financial This increase in visibility for the SDGs report. Thus, it seems fair to conclude was not, however, consistent across all that the SDGs will become the globally companies examined or all of the SDGs. accepted strategic roadmap by listed In some areas the increase in SDG companies.A curated analysis of these visibility was greater than others. This data allows for specific, high-scale SDG reflected both the individual impact investment. circumstances of companies as well as trends related to how each of the SDGs The trend seems clear: Companies are (and its urgency) has been framed by increasingly vocal on the SDGs in their society at large (including media and annual reports due to the positive benefits academics). This helps us further to company performance and in understand CSR choices.
6 UNGSII SCR300 continues with solid 2020 performance, outweighing bearish 2018 challenges
The UNGSII SCR300 has thus far while making an investment profit. shown a rate of return of 13% over Because responsibility and three years. This is after a return of sustainability improvements are 27.63% in 2017, weathering the always possible for all companies, storms of 2018 with only -1%, and the multiple data sources and now back again with +28% for regularly updated nature of the 2019. This performance highlights UNSGII SCR500 means its that responsible, socially conscious companies are always at the business is also profitable business, forefront of the business and providing unique opportunities to investing advantage offered by support progress on the SDGs supporting the SDGs.
UNGSII SCR300 Global Sustainability Funds After performing in first place in bullish 2017, the SCR300 remained solid in 2019, finishing second 60% 50% 40% 30% 20% 10% 0% Invesco Global Touchstone MSCI ACWI UNGSII Fund Total Returns ESG Etf Global ESG Eq Dow Jones Fund Sustainability World Index TR 1 Year Annualized Return % - 3 Year 3 Year Culmulative Return
7 Quoted financial analysts increasingly argue for ESG/CSR
Quoted financial analysts have also a clear agenda about a company’s been increasingly visible on ESG / stock and whether investors should CSR issues. This reflects both buy, hold, or sell it, they are more analyst commentary and the prone to focusing only on the selection of quotations from them by journalists. This increase sends extremes of CSR news – very a clear message, however. How a positive activities or very negative company performs on CSR actions. The opinion of quoted activities is an appropriate financial analysts is a key part of investment criteria for the market to the picture. The record level of consider. Because financial statements on ESG / CSR issues in analysts are usually speaking with 2019 indicates changing priorities.
Share of visibility on ESG/CSR-related topics from financial analysts (companies/industries) 30%
25%
20%
15%
10%
5%
0% 2002 2003 2004 … … 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Share of ESG-related coverage on companies and industries
Basis: 445,924 statements on different companies and industries by financial experts/analysts in opinion- leading international business media 8 CEOs need to understand the writing on the wall to stay in business
For decades, the financial markets Governance (ESG) issues has haven’t exactly been the place to more than doubled for a number of find long-term thinking and a focus industries. Nearly 35 percent of all on sustainability. But investors’ analyst comments on the focus is about to change automotive industry have dramatically as a comparison of addressed ESG issues in 2019. financial analyst comments on large CEOs of automotive companies caps in 2002 and 2019 shows. The have seen their stock price trends share of statements by quoted driven by investor (un)belief that experts that centers on they can master the change Environmental, Social and towards sustainable mobility.
Share of ESG-related statements in analyst quotations on industries 2002 vs. 2019 40% 35% 30% 25% 20% 15% 10% 2002 5% 2019 0%
Basis: 33,355 / 32,768 statements on different industries by financial experts/analysts in opinion-leading international business media 9 TV and business media increase focus on environment
TV and business media have been environmental performance is increasing their share of coverage strong in its annual report or other on environmental issues. This communications, corporations must showcases the importance of realize that the media will seek to corporate environmental verify their claims. False statements performance to a company’s overall can lead to extreme negativity such image and also emphasizes the as in what happened to VW and its crucial role the media plays in experience with greenwashing. The detecting and discussing increase in positivity in 2020 shows greenwashing. While a company that companies are trying to may choose to say its emphasize solutions.
Share of coverage on Environmental Tone of coverage on Environmental Policy / DAX30 Policy / DAX30 3% 100%
90%
2% 80%
70%
2% 60%
50%
1% 40%
30%
1% 20%
10%
0% 0% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Share of coverage on environmental policy Negative No clear tone Positive 10 Levels of SDG visibility vary by country
Average number of statements on the SDGs per analyzed annual report
India South Africa U.K. Switzerland Austria Chile Germany Japan Sweden Brazil Australia China Canada U.S.
0 50 100 150 200 250
Number of statements
The average visibility for the SDGs their national origin or the specific in annual reports of leading SDG themes that they emphasize. companies differs by country. These There are many options of this differences are caused by a range nature and several example fund of issues, including the preferred concepts – Austria, China, style of annual reports in a country, Germany, and an SDG 3 Good national regulations, and cultural Health concept – follow. It is interests. This diversity of SDG worthwhile to note the rapid rise of visibility creates opportunities for statements from China, a clear sign investors who may prefer to invest the country is shifting towards more in baskets of companies based on SDG-based disclosure.
Note that the data for some countries are based on a small sample of companies so far. 11 Fund concepts by Anis Asghar
1. SCR100 China (onshore + offshore) 2. SCR300 Asia 3. SCR100 Germany 4. SCR100 Austria 5. SDG 3 Health Project Fund
UNGSII mandate is to adhere to the mission of Fund to allow the asset financing of assets the foundation by investing in sustainability via such as the need to replace diesel busses with our flexible funds. Sustainable investing is a zero emission busses, build affordable houses concept of screening in via our metrics rather and assisted living, or finance solutions than screening out. We believe it is about around health and wellbeing in the 25+5 front doing good rather than avoiding investments runner cities. The basic principle of these that do not meet our criteria. Our primary aim project funds is to invest in a blended is to meet or exceed the global rates of return. debt/equity SPV. These can include green bonds from global corporations that have UNGSII’s SCR500 Investment Fund (SCR500) selected the SDG500. This allows the specific is designed to give investors a way to support Project Fund to invest in SMEs providing the Sustainable Development Goals (SDGs) cutting edge solutions within the specific and to provide an alternative to an investor’s project. At the end of the typical 10yr term, the global equity allocation. While SCR500 is a returns are based on early stage investment. portfolio of large-cap companies that have committed to implementing one or more of the UNGSII’s focus on investing via the SDGs has SDGs, partners of the UNGSII 25+5 SDG led to the creation of investor led products that Cities Leadership Platform have requested serve both our 25+5 cities (including additional options for the SCR500, as it has Hangzhou, China and Tokyo, Japan in Asia) outperformed comparable offerings over the and the wider investment community last three years. dedicated to upholding the commitment made by 193 countries in September 2015. Forward- As part of the requests for regional offerings, looking approach to an investment requires an UNGSII has developed the SCR into products understanding of the companies ethos, social for China, Austria, Germany, rest of Asia and and environmental policies, how it manages its others. In particular, for China, the fund will be workforce as well as a full analysis of the managed out of either the Shanghai or numbers. The SCR500 does not just tick Shenzhen Free Zones. These regional funds boxes, we analyze each aspect of a company can be allocated to by any manager, but are in line with the SDGs to ensure that any focused on the regional performance of investment meets our criteria before we selected equities. analyze the numbers. This unique approach provides comfort to investors on rates of return both financially and for society as a whole. UNGSII has also developed the SDG Project
12 SCR100 China (onshore + offshore) Top SDGs
SDG distribution for analyzed companies in China
SDG13 Climate Action SDG3 Good Health And Well-Being SDG7 Affordable And Clean Energy SDG4 Quality Education SDG12 Responsible Consumption And Production SDG6 Clean Water And Sanitation SDG16 Peace, Justice And Strong Institutions SDG1 No Poverty SDG8 Decent Work And Economic Growth Volume of SDG statements in annual reports SDG9 Industry, Innovation And Infrastructure SDG17 Partnersip for Goals 1000 SDG15 Life On Land 500 SDG2 Zero Hunger SDG10 Reduced Inequalities 0 2017 2018 SDG5 Gender Equality SDG11 Sustainable Cities And Communities Number of statements SDG in general 0 50 100 150 200 250
Chinese companies collectively The Chinese government has taken represent a compelling SDG story. concrete and meaningful steps to The volume of SDG statements in reduce the impact of economic the annual reports of analyzed growth on the environment. The ban companies has grown significantly on plastic waste imports effective from 2017 to 2018. Additionally, January 2018 is one example, SDG visibility from Chinese promotion of photovoltaic producers companies both follows the global another. Investors need to carefully trend of focus on Climate Action assess related risks and while also prioritizing SDGs like opportunities to identify those Clean Energy (7) and Quality companies that can help to foster Education (4) at higher levels than the SDGs domestically and abroad companies elsewhere. on a large scale.
Source flag image: www.nationalflaggen.de 13 SCR100 China (onshore + offshore) Top companies on the SDGs
SDG visibility in annual reports of analyzed leading Chinese companies
CITIC Group Swire Pacific AIA Group Sinopec Group Jardine Matheson China Mobile Communications Alibaba WH Group Xiaomi Noble Group Midea Group Dongfeng Motor Group China Vanke China Electronics 0 50 100 150 200 250 300 350 400 450 500
Number of statements
Companies from a wide range of The rising commitment of Chinese industries have shown strong companies to the SDGs serves as a visibility on the SDGs. These particularly powerful global example include purely Chinese companies thanks to the power of the country’s headquartered in China as well as economy, its thought leadership and multinational conglomerates that the size of its population. If China is are partially headquartered in actively supporting the SDGs, the China, often in Hong Kong. Visibility rest of the world will have even on the SDGs for Chinese more incentive to get on board with companies is likely to continue to the Goals to benefit their own expand in line with or even exceed economies and people. global trends.
14 SCR100 Germany Top SDGs
SDG Distribution for Analyzed Companies in Germany
SDG13 Climate Action SDG16 Peace & Justice SDG12 Responsible Consumption SDG9 Industry & Innovation SDG3 Good Health SDG17 Partnership for Goals SDG8 Decent Work SDG5 Gender Equality SDG4 Quality Education SDG6 Clean Water SDG2 Zero Hunger SDG11 Sustainable Cities SDG7 Affordable Energy SDG in general SDG10 Reduced Inequalities SDG15 Life On Land SDG14 Life Below Water SDG1 No Poverty 0 100 200 300 400 500 600 700 800 900 1000
Number of statements
German companies, like those ideals as well as those of regional around the world, also show a firm and global cooperation. Similarly, commitment to SDG 13 – Climate German companies place a high Action. But German companies are priority on decent working also strongly committed to the goals conditions and gender equality. of SDG 16 – Peace, Justice, and These SDG focuses come from a Strong Institutions. This SDG combination of German values and includes subgoals such as opposing regulatory policies which actively corruption and strong support for support workers, promote high equality for all people. An SDG fund environmental standards, and are with a focus on Germany can in turn moving to ensure the presence of serve to support these companies’ women at all levels of a corporation.
Source flag image: www.nationalflaggen.de 15 SCR100 Germany DAX 30 performance in the SCR 500 varies
When each DAX 30 company was unrelated areas allowed them some scored for SCR inclusion based on level of achievement even as 2017 results released in 2018, opportunity for improvement scores varied, with Adidas and remained. Discussion of multiple Deutsche Telekom being rated SDGs was key to companies excellent with a 75 score each out reaching the Good or Excellent of a possible 100 points. Eight score category. The Excellent other companies were rated good, category could not be reached and ten others were rated fair. without positive media support the Some companies in the SCR500 SDGs. Market share of some faced risks around specific areas companies like Deutsche Post/DHL (e.g., VW and the emissions can help to leverage the SDG scandal), but performance on other, investment.
SCR500 Scores for DAX 30 Companies (max. 100 points)
Fair Good Excellent Linde 10 Deutsche Lufthansa 40 Adidas 75 RWE 10 Deutsche Post 45 Deutsche Telekom 75 Allianz 20 E.ON 50 Beiersforf 20 Henkel 50 Siemens 20 BMW 55 Deutsche Bank 25 SAP 55 Daimler 30 VW 60 Deutsche Boerse 30 BASF 70 Bayer 35 Infineon 35
16 SCR100 Austria Top companies on the SDGs
Visibility of SDGs for Austrian Companies
SDG13 Climate Action SDG16 Peace, Justice And Strong Institutions SDG5 Gender Equality SDG8 Decent Work And Economic Growth SDG12 Responsible Consumption And Production SDG4 Quality Education SDG7 Affordable And Clean Energy SDG3 Good Health And Well-Being SDG9 Industry, Innovation And Infrastructure SDG in general SDG1 No Poverty SDG11 Sustainable Cities And Communities SDG2 Zero Hunger SDG6 Clean Water And Sanitation SDG10 Reduced Inequalities SDG17 Partnersip for Goals SDG14 Life Below Water SDG15 Life On Land 0 50 100 150 200 250 300 350 400 450
Number of statements
Austrian companies show extensive corruption scandals in recent years. commitment to the SDGs. As a Austrian companies have put a country that is directly affected by significant emphasis on SDG 5 climate change (e.g., glacial ice (Gender Equality) in recent years. melts and landslides happening This can be seen as a response to more frequently) its citizens and low scores in country-by-country businesses are very aware of the comparisons until 2016 (e.g., PWC consequences of unsustainable study on gender-equality in OECD behavior. SDG 16 has also gained countries) or the Global Gender importance in recent years – as Gap Score by the WEF. Decent some large Austrian companies Work and Economic Growth have have been affected by governance / been focused on as well.
Source flag image: www.nationalflaggen.de 17 SCR100 Austria Top companies on SDGs
Visibility of SDGs by Percentage of SDGs Austrian Company referenced in annual report
Erste Bank Verbund Verbund Erste Bank OMV Telekom Austria Strabag Strabag OMV Telekom Austria Wienerberger Voestalpine Andritz Wienerberger Voestalpine Andritz Raiffeisen Raiffeisen Porr Porr 0% 20% 40% 60% 80% 100% 0 100 200 300 400 500 Percentage of SDGs referenced in annual Number of statements report
The analysis of a sample of leading Verbund and OMV, leading players Austrian firms’ financial annual in the energy and oil/gas business, reports indicate varying levels of is notable. Verbund has provided SDG commitment. In terms of the information on all of the 17 SDGs.A financial sector, Erste Bank has year-on-year increase in the taken most advantage of the SDGs number of statements signals a so far. The strong commitment of growing interest in the SDGs.
18 SDG3 Health Project Fund More companies addressing SDG 3 Good Health
Percentage of analyzed companies addressing SDG 3 Good Health 80%
70%
60%
50%
40%
30%
20%
10%
0% 2017 2018 2019
Percentage of analyzed companies addressing SDG 3 Good Health
The share of companies addressing related charities that benefit those Good Health as an SDG increased who are not directly associated with to just over 70% in annual reports the company or where it operates. released in 2019 regarding performance in 2018. Health initiatives from companies include preventive care services, Coverage on Good Health includes exercise and other well-being a range of considerations, including activities, charity efforts regarding the health of employees, the health cancer, diabetes, and other serious of communities in which a company diseases, and concern for mental operates, and the support of health- health wellness as well.
19 SDG3 Health Project Fund A strong cross-section of industries focus on SDG 3
Companies most visible on SDG 3 - Good Health
Pfizer Roche Group Cemex Industria de Diseno Textil Total AbbVie Deutsche Telekom Bayer BNP Paribas Astra Zeneca Access Bank Rio Tinto Group Denso SAP Volvo 0 200 400 600 800 1000 1200 1400 1600
Number of statements
The companies that are the most highlighting the importance of visible on SDG 3 Good Health caring about the health of represent a range of industries. employees, customers, and While the expected leaders in communities for all companies. pharmaceuticals and healthcare are Over 70% of companies offer some present. Companies in other comment on SDG 3, but these industries such as banking, companies represent the strongest technology, and clothing performance. Most of them also producers/retailers are also address other SDGs as part of a amongst the leaders, well-balanced SDG commitment.
20 Many companies are already driven by the SDGs
Over 300 of the top companies analyzed Overall share of visibility of the SDGs already talk about their commitment to the SDGs in their annual reports. This
21% presents multiple opportunities. Impact Excellent visibility (over 501 statements) investors have the opportunity to make solid profits while also helping the best performers in the categories they are most committed to stay best in class.
39% 21% of companies are demonstrating Good visibility (101 - 40% 500 statements)exceptional commitment. Not only are Fair visibility (1 - 100 they committed to the SDGs, they refer to statements) them by name and address all of most of them in their annual reports. This helps to spread awareness and enlist others in helping to improve the planet. Focus on Excellent Good Fair the SDGs and companies that contribute positively to the world will only continue to Overall share of visibility of the SDGs by origin of company grow.
African companies perform the best in 100% regard to the visibility of the SDGs in the 90% annual reports. All of the African 80% companies analyzed refer to the SDGs at 70% a level considered good or excellent. 60% Performance in Europe and Asia is also 50% strong. This is markedly different than in the U.S. where the majority of companies 40% do not reference the SDGs at a significant 30% level. This is due to a number of factors, 20% including a trend towards only productng 10% a 10-K and not a magazine-style annual 0% report in the U.S., as well as public Africa Americas Asia-Pacific Europe sentiment about both the U.N. and some Fair Good Excellent of the key SDGs (e.g., Climate Action).
21 Climate action dominates mention of the SDGs
Visibility of the SDGs
SDG13 Climate Action SDG3 Good Health SDG12 Responsible Consumption SDG16 Peace & Justice SDG8 Decent Work SDG9 Industry & Innovation SDG4 Quality Education SDG5 Gender Equality SDG7 Affordable Energy SDG11 Sustainable Cities SDG17 Partnerships SDG15 Life On Land SDG6 Clean Water SDGs in general SDG10 Reduced Inequalities SDG2 Zero Hunger SDG14 Life Below Water SDG1 No Poverty 0 1000 2000 3000 4000 5000 6000 7000 8000
Number of statements
Climate action was by far the most crisis were, however, a factor. While visible of the SDGs. This was due some industries necessarily to a combination of factors, addressed this topic more than including legal requirements in others – i.e., automakers, energy some regions to report on producers, and oil, and gas greenhouse gas production and companies – concern on this topic control. The visibility of climate was visible across all industries. action also showcased the urgency Good Health and Responsible of this topic and reflected consumer Consumption are ranked second expectations that companies and third, closely followed by Peace behave responsibly when it comes & Justice and Decent Work.A few to their impact on the environment. SDGs have extremely limited Regional differences related to the visibility, showcasing opportunity for acceptance of climate change as a companies that step forward.
22 European companies lead on the most visible SDGs – Climate Action, Responsible Consumption, and Good Health
Overall visibility of SDG-related coverage As previously noted, the SDGs focusing on Climate Action (13),
Schneider Electric Responsible Consumption (12), and Inditex Good Health (3) were most visible Total across all annual reports. Iberdrola BNP Paribas Cemex Danone dominated on Climate General Motors Action, but was also strongly visible SAP on Responsible Consumption. BASF BBVA 0 200 400 600 800 Meanwhile, Inditex focused on responsible consumption in the
Inditex textile industry, focusing on Schneider Electric reducing waste at in their supply Mondi and consumption chain. The Tesco company was also strongly focused Banorte on Good Health for its employees Volvo Akzo Nobel and the communities it operates in. BASF Cemex Adidas North America companies were largely absent from the top ten on 0 200 400 600 800 1000 all three of these topics due to lower Pfizer overall visibility on the SDGs. Roche Group Cemex Inditex This was due to a range of issues, Total including a growing trend in the AbbVie U.S. to only file a Form 10-K and Deutsche Telekom Bayer not a magazine-style annual report BNP Paribas and political controversy about the Astra Zeneca reality of climate change. 0 500 1000 1500 23 Yes, 2019 was a good year for climate action. Here’s why. by Mafalda Duarte
Doomsday climate stories make headlines but The UN reported that global investments in new obscure the bigger picture. As head of one of the renewable energy capacity are on track to exceed world’s largest and most experienced climate $2.5 trillion by the end of this year, capping a funds, I follow these developments closely, and I’m record-breaking decade in renewable energy convinced that 2019 was not only a good year for investment. climate action—on balance, it was one of our best yet. The same investors are eyeing the industrialized world as well as emerging economies on the This isn’t a mere hunch, this is a conclusion drawn frontlines of this crisis. The world’s largest from data. For starters, global consensus on the multilateral development banks indicated in June urgency of climate solutions has never been so that financing for climate-vulnerable developing widespread. In a 2019 survey conducted in 26 countries had hit an all-time high of over $43 countries, a majority of respondents identified the billion. This includes funding channeled through climate crisis as a major threat to their nation. the fund that I lead, the Climate Investment Funds, These results are consistent with other polls and other climate financing bodies. administered this year, including a World Economic Forum study that found decisionmakers Finally, despite appearances, many governments across sectors agree a changing climate is the are tackling the climate emergency with ever- biggest risk facing humanity. Other signs of a bolder legislation. There has been a twenty-fold climate awakening abound. In September, more increase in the number of global climate change Americans typed “climate change” into laws since 1997, and in a first for Europe and the Google than “Game of Thrones.” That same world, the European Union announced it would month, we saw what may have been the largest become the first carbon-neutral continent by 2050. climate change protest in history, the Over 65 countries around the world have made approximately 4-million-strong Global Climate similar pledges, many of which were unveiled this Strikes, inspired by Swedish climate activist and year. this year’s TIME Magazine Person of the Year, Greta Thunberg. By all accounts, another win for These are some of the headlines from 2019 that 2019. keep me going. They serve as a reminder of what we have already achieved, and what we could still Secondly, analyses revealed this year that accomplish with more ambition and through sheer renewable sources of energy like wind and solar force of will. are increasingly becoming the norm. According to a BloombergNEF forecast released this summer, This is not a time for defeatism or passivity. We because of falling costs, renewables are expected cannot afford to give up on the climate-smarter to satisfy almost half of the world’s energy needs world that future generations so richly deserve. by 2050. Not to be outdone, Costa How else will we drive this all-important agenda Rica announced that over 99% of its energy forward, if not by knowing in our bones that wider demand is being met with renewables—for the fifth change is possible? year in a row. So enough with the doom and gloom: climate Sustainable investments, too, are pouring in. action is already happening in a big way, it just These are accelerating our transition to a clean needs to happen much faster. But we have shown energy future. what it takes to get the job done. Now let’s get to it.
24 The relationship between visibility of the SDGs and media tone
Most visible companies on Share of positivity on TV news the SDGs in annual reports and in business print media
Inditex Inditex
Cemex Cemex
Schneider Electric Schneider Electric
BNP Paribas BNP Paribas
Valeo Valeo
Sanofi Sanofi
Legrand Legrand
Danone Danone
Banco Bilbao… Banco Bilbao…
Vivendi Vivendi
0 1000 2000 3000 4000 5000 0% 50% 100%
Number of statements Share of positivity in the media
Media Tenor’s media sentiment data can stakeholders such as investors dropping serve as a control system. It allows the share and consumers walking away. investors to see if companies are Visibility and tonality – in general and accurately representing their associated with the SDGs specifically – commitments to the SDGs. Additionally, can help drive share prices up and down. media sentiment data can help identify This can be an important tool in predicting companies that are deeply committed to price fluctuations over a range of time the SDGs but are not yet able to convey intervals. Companies with a consistent this information effectively to the media. high reputation on social development Companies that are strongly visible on the issues tend to benefit from lower SDGs in their annual reports tend to borrowing costs and better scores in receive high shares of positivity in the employee rankings. We have given each media. If companies stress SDGs in their analyzed company a core from 1 – 100, annual reports and the media sees a gap which showcases not just the visibility of between promise and reality, companies the SDGs, but the diversity of SDGs are likely to attract adverse publicity with mentioned and the media image of subsequent negative reaction from companies related to these topics. 25 The relationship between visibility of the SDGs and tone in quoted analyst statements
Most visible companies on Share of positivity from the SDG quoted financial analysts
Inditex Inditex
Cemex Cemex
Schneider Electric Schneider Electric no positive statements
BNP Paribas BNP Paribas
Valeo Valeo
Sanofi Sanofi no positive statements
Legrand Legrand no positive statements
Danone Danone Banco Bilbao Vizcaya Banco Bilbao Vizcaya no positive statements Argenaria Argenarta no positive statements Vivendi Vivendi
0 1000 2000 3000 4000 5000 0% 20% 40% 60% 80%100%120%
Number of statements Share of positivity from quoted financial analysts
Similar to the impact of overall the media. This expert opinion also media tone, Media Tenor media has the ability to move the market sentiment data can also look and thus allows investors to exclusively at the tone of anticipate stock market activity. statements from financial analysts Additionally, this data can help quoted by the media. This does not companies ascertain which analysts capture overall analyst sentiment, can help them achieve media but it does capture the overall visibility based on quotation analyst sentiment as portrayed in frequency and themes.
26 21 SCR500 companies are strongly recognized on the SDGs/CSR by quoted financial analysts
The 21 companies below are members of The mix of regional focus shows that the SCR500 that received only positive and companies that excel can overcome neutral coverage on their SDGs/CSR regional biases that make visibility on activities. CSR topics challenging in some markets. Responsible, sustainable corporate These companies have been effective in activities aren’t just better for society, but spreading their message on the SDGs are ultimately the most profitable. beyond their annual reports and are capable of reaching new audiences The U.S., for example, lags behind regarding their sustainability commitment. because of skepticism on widely accepted These companies represent a range of issues like climate change. This has locations and industries; those in Europe resulted in lower attention from U.S. were the most successful in this regard. analysts on for SDGs and CSR topics.
Coverage tone for SCR500 companies with positivity on SDGs/CSR from quoted financial analysts
Renault Fedex Intuit Audi SAP Sony JP Morgan Nintendo Facebook Allianz Daimler Goldman Sachs NVIDIA Costco Amazon Walt Disney Adobe adidas Best Buy Johnson & Johnson 0% 10% 20% 30% 40% 50% 60% 70% 80%
Tone of coverage
2017 / 2018
27 Fund Concept: SDG 1 best performers - No Poverty
Overall
BNP Paribas
BBVA
Cemex
Inditex
AXA
0 5 10 15 20 25 30 35
Americas Europe
Cemex BNP Paribas
Banorte BBVA
Cisco Systems Inditex
Bank of Montreal AXA
JP Morgan Chase Roche Group
0 10 20 30 0 10 20 30 40
Asia-Pacific Africa
Barloworld AIA Group Grindrod Limited
Remgro Sinopec Group Access Bank
0 2 4 6 8 10 0 2 4 6 8
28 Fund concept: SDG 2 best performers - Zero Hunger
Overall
Bayer
Sainsbury
Inditex
Diageo
Shoprite
0 50 100 150 200
Americas Europe
Ecolab Bayer Cemex Sainsbury Banorte Inditex AIG Diageo Citigroup Jet Blue Tesco 0 5 10 15 0 50 100 150 200
Asia-Pacific Africa
Infosys
Sojitz Shoprite
Denso
0 2 4 6 0 10 20 30 40
29 Fund concept: SDG 3 best performers – Good Health
Overall
Pfizer
Roche Group
Cemex
Inditex
Total
0 200 400 600 800 1000 1200 1400 1600
Americas Europe
Pfizer Roche Group
Cemex Inditex
AbbVie Total
Biogen Bayer
General Electric Deutsche Telekom
0 500 1000 1500 0 200 400 600 800 1000
Asia-Pacific Africa
Denso Access Bank
AIA Group Grindrod Limited
Infosys Mondi
Banpu Remgro
Toyota Motor Barloworld
0 20 40 60 80 100 0 50 100 150
30 Fund concept: SDG 4 best performers – Quality Education
Overall
Inditex
Banorte
Banpu
Grindrod Limited
Cemex
0 50 100 150 200 250 300 350
Americas Europe
Banorte Inditex
Cemex Roche Group
JP Morgan Chase Deutsche Telekom
IBM Schneider Electric
Biogen BBVA
0 50 100 150 200 0 100 200 300 400
Asia-Pacific Africa
Banpu Grindrod Limited
Infosys Access Bank
SoftBank Group Barloworld
AIA Group Mondi
Sojitz Remgro
0 50 100 150 200 0 50 100 150
31 Fund concept: SDG 5 best performers – Gender Equality
Overall
Inditex
BNP Paribas
Schneider Electric
Total
Banorte
0 50 100 150 200 250 300
Americas Europe
Banorte Inditex
Cemex BNP Paribas Schneider Electric Bank of America Total Bank of Montreal Rio Tinto Group Gildan AXA
0 50 100 150 0 50 100 150 200 250 300
Asia-Pacific Africa
Sojitz Access Bank Denso Grindrod Limited Infosys Barloworld AIA Group
Toyota Motor Shoprite
0 10 20 30 0 25 50 75 100 32 SCR500 companies vary widely on gender equality by region
The majority of European and Since women are half the African companies address gender population, they also represent half equality in their annual reports. This the potential work force and half of is, in part, due to regulations that any company’s potential customers. require active gender equality Working towards gender equality efforts vs. more passive non- therefore has clear benefits to all discrimination regulations. 40% of stakeholders. As such, equality can companies in Asia Pacific show improve efficiency, the corporate active comment on gender equality. environment, demand for products, In the Americas, however, the and society at large. Many visibility of gender equality lags companies still have room to make behind in both North and South progress on this issue. America.
Share of companies addressing SDG5 Gender Equality in most recent annual report
Europe
Africa
Asia-Pacific
Americas
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
33 Technology companies conspicuously absent on gender equality
There has been wide-spread commitment to the SDGs have an publicity on sexism in tech opportunity to differentiate themselves companies. Media coverage has from the pack by making it clear to all included accounts of pay stakeholders that they are committed disparities, lack of promotions, and to being able to select from a large sexual harassment at specific and diverse talent pool. However, only companies, as well as industry-wide SAP was visible on gender equality at concern that women are not all. While SAP increased visibility on interested in working in technology this issue compared to last year, environments because of workplace overall the industry discussed gender culture. In addition, the ongoing equality less in its annual reports in “GamerGate” controversy has 2018 than in 2017. Those companies served to drive women out of video that have not yet addressed gender game-related spaces as both equality in their annual reports, may employees and hobbyists. In light of wish to prioritize this in order to these problems, technology acknowledge concerns and boost companies with a strong investor confidence.
Technology company visibility on gender equality
SAP
Intel
Google statements No
Microsoft
Cisco
Apple
0 5 10 15 20 25 30 35
Number of statements 34 Lack of gender equality marks a key reputational threat to tech sector
The analysis of opinion-leading communicating on and addressing the global media in 2017 and 2018 issue. Looking at individual media tone demonstrates the level of scores of some of the largest reputational risks linked with the technology companies underpins the technology sector when it comes to problem: Google had a rating of -43 gender equality. Electronics and IT (balance of positive/negative coverage companies account for a significant tone in per cent), Amazon of -67, share of stories on gender equality Apple of -50 to name just a few. Twitter with strongly negative coverage as and Uber had similar negative scores. concern about sexual harassment The significant decline in company in the workplace and equality for value following the controversy about employees continues across Uber’s founding CEO Kalanick and his multiple industries. Currently the subsequent ousting in 2017 might act tech industry is behind in as a warning to all investors.
Reports regarding gender Reports regarding gender equality and discrimination by equality and discrimination by industry 2017/18 industry 2017/18
Media Banks
Entertainment Electric engineering/IT
Electric engineering/IT Airlines/railways
Banks Media
Airlines/railways Entertainment
0% 10%20%30%40%50% -100 -50 0
Share of coverage; 100% = all reports on Positive Negative equality/discrimination
35 Not many role models on gender equality identified yet
Drilling deeper into the global media efforts in companies to create equal coverage data on gender equality opportunities for men and women to regarding 2017 and 2018, we find a reach top positions and to reduce the number of companies that were pay gap which still exists in many negatively framed on a variety of organizations. The media analysis issues. The Weinstein scandal that also revealed some companies and created widespread visibility for the organizations that achieved favorable #metoo movement on Twitter in late acknowledgement of their activities 2017 remained a highly visible on gender equality, like Siemens, issue. However, rape and sexual Adidas, B H P, Erste Bank, Deutsche harassment are maybe extreme Telekom and Facebook. However, results of inequality, especially the issue seems to be still an when it comes to power and emerging one as the number of influence. Important discussions positive reports has been rather low. comprised a lack of
Companies with primarily negative (red) / positive (green) international media coverage on gender equality, (non) discrimination, promotion of women, sexual harassment
Weinstein, Google/Alphabet, Siemens, Adidas, CBS, BBC, NBC, Deutsche Telekom, Uber, Amazon, Volkswagen, Wynn, Bank of Citigroup, Erste America, easy yet, Bank, BHP, SAP, Coutts, Credit Facebook Suisse, Nike, Trump
36 Fund concept: SDG 6 best performers – Clean Water
Overall
Diageo
Shoprite
Total
BASF
Cemex
0 20 40 60 80 100 120 140
Americas Europe
Cemex Diageo
Ecolab Total
Home Depot BASF
Bank of America Adidas
Grupo Financiero Banorte Akzo Nobel
0 20 40 60 80 0 50 100 150 Asia Africa
Toyota Motor Shoprite
Denso Mondi
Infosys Grindrod Limited
Sojitz Barloworld
Banpu Access Bank
0 10 20 30 40 50 0 20 40 60 80 100 120
37 Fund concept: SDG 7 best performers – Affordable Energy
Overall
Schneider Electric
Total
BNP Paribas
Cemex
BBVA
0 100 200 300 400 500 600 700
Americas Europe
Cemex Schneider Electric
Grupo Financiero Banorte Total
General Electric BNP Paribas
Bank of America BBVA
Home Depot Swatch Group
0 50 100 150 0 200 400 600 800
Asia-Pacific Africa
Toyota Motor Mondi
Denso Barloworld
Infosys Grindrod Limited Sojitz Shoprite Cebu Air Access Bank 0 20 40 60 80 100 0 10 20 30 40 38 Fund concept: SDG 8 best performers – Decent Work
Overall
Inditex
Julius Bär
Schneider Electric
Banorte
Deutsche Telekom
0 100 200 300 400 500 600
Americas Europe
Banorte Inditex Cemex Julius Bär Bank of America Schneider Electric Pfizer Deutsche Telekom JP Morgan Chase BNP Paribas 0 50 100 150 200 250 0 100 200 300 400 500 600
Africa Asia-Pacific
Shoprite Sojitz Mondi
Infosys Grindrod Limited
Barloworld Denso Access Bank 0 20 40 60 80 100 0 20 40 60 39 Fund concept: SDG 9 best performers – Industry and Innovation
Overall
Banorte
Deutsche Telekom
Schneider Electric
Cemex
Bayer
0 100 200 300 400 500 600
Americas Europe
Banorte Deutsche Telekom
Cemex Schneider Electric
JP Morgan Chase Bayer
Bank of America BNP Paribas
Citigroup Roche Group
0 100 200 300 400 500 600 0 100 200 300 400 500 Asia-Pacific Africa
Infosys Grindrod Limited
Sojitz Shoprite Denso Access Bank AIA Group
SoftBank Group Mondi
0 20 40 60 80 0 10 20 30 40 50
40 Fund concept: SDG 10 best performers – Reduced Inequalities
Overall
Inditex
Deutsche Telekom
Total
BNP Paribas
Denso
0 20 40 60 80 100 120 140 160
Americas Europe
Inditex JP Morgan Chase
Cemex Deutsche Telekom
IBM Total
Salesforce BNP Paribas
Bank of America Sainsbury
0 10 20 30 40 0 50 100 150 Asia-Pacific Africa
Denso
Grindrod Limited
Sojitz
0 10 20 30 40 0 5 10 15
41 Fund concept: SDG 11 best performers – Sustainable Communities
Overall
Banorte
Cemex
Bank of America
Iberdrola
BASF
0 50 100 150 200 250 300 350
Americas Europe
Banorte Iberdrola
Cemex BASF
Bank of America Volvo
Citigroup Deutsche Telekom
Pfizer Barclays
0 100 200 300 400 0 50 100 150
Asia-Pacific Africa
Denso Remgro
Infosys Shoprite
Sojitz Barloworld
Banpu Access Bank
Toyota Motor Mondi 0 5 10 15 20 0 10 20 30 40
42 Fund concept: SDG 12 best performers – Responsible Consumption
Overall
Inditex
Schneider Electric
Mondi
Tesco
Banorte
0 200 400 600 800 1000
Americas Europe
Banorte Inditex
Cemex Schneider Electric
Ecolab Tesco
General Motors Volvo
Pfizer Akzo Nobel
0 50 100 150 200 250 0 200 400 600 800 1000
Asia-Pacific Africa
Sojitz Mondi
Denso Shoprite
Toyota Motor Grindrod Limited
Cebu Air Barloworld
Infosys Access Bank
0 20 40 60 80 0 50 100 150 200 250
43 Fund concept: SDG 13 best performers – Climate Action
Overall
Schneider Electric
Inditex
Total
Iberdrola
BNP Paribas
0 100 200 300 400 500 600 700
Americas Europe
Cemex Schneider Electric
General Motors Inditex
Banorte Total
General Electric Iberdrola
Citigroup BNP Paribas 0 100 200 300 400 0 200 400 600 800
Asia-Pacific Africa
Toyota Motor Mondi
Denso Grindrod Limited
Banpu Access Bank
Sojitz Barloworld
Infosys Remgro
0 20 40 60 80 100 0 50 100 150 200 250
44 Fund concept: SDG 14 best performers – Life Below Water
Overall
Swatch Group
Total
Akzo Nobel
Grindrod Limited
Sainsbury
0 10 20 30 40 50 60
Americas Europe
CMPC Empresas Swatch Group
Itau Unibanco Holding Total
Empresas Copec Akzo Nobel
Ecolab Sainsbury
Cargill BBVA
0 1 2 3 4 5 6 0 10 20 30 40 50 60
Asia-Pacific Africa
Sojitz
Grindrod Limited
Denso
0 1 2 3 4 5 6 0 10 20 30 40 45 Fund concept: SDG 15 best performers – Life on Land
Overall
BNP Paribas
Total
Bayer
Sainsbury
Vinci
0 20 40 60 80 100 120
Americas Europe
Cemex BNP Paribas
Banorte Total
Home Depot Bayer
Verizon Sainsbury
Jet Blue Vinci
0 100 200 300 400 0 20 40 60 80 100 120
Asia-Pacific Africa
Banpu Mondi
Toyota Motor Remgro Sojitz
Grindrod Limited Denso
0 10 20 30 40 50 60 0 50 100 150
46 Fund concept: SDG 16 best performers – Peace and Justice
Overall
Julius Bär
Total
Volkswagen
Deutsche Telekom
Inditex
0 200 400 600 800 1000
Americas Europe
Banorte Julius Bär
Cemex Total
IBM Volkswagen
Intel Deutsche Telekom
Cisco Systems Inditex
0 20 40 60 80 100 120 0 200 400 600 800 1000 Asia-Pacific Africa
Remgro Sojitz Access Bank Banpu Mondi
Grindrod Limited Denso Barloworld Toyota Motor Shoprite
0 50 100 150 0 20 40 60 80
47 European focus on peace & justice is more than three times that of the Americas
While concerns about peace, As is true throughout the SCR500, justice, and the rule of law are a lack of visibility for an SDG does global, SCR500 companies not mean a company is not working evidence different levels of on addressing it. However, without commitment on this topic in their communications, those efforts do annual report communications. not benefit the company and do not While over 60% of the European encourage other companies to join companies in the SCR500 discuss in. Companies in the Americas need this issue, less than 20% of the to look to their global peers on this companies in the Americas do, issue and also be willing to take suggesting very different attitudes leadership in their own region. about global crises in general and Current anti-regulatory sentiment in the most common global corporate the U.S., may make addressing crisis – corruption – in particular. these topics challenging.
Share of SCR500 Companies that address SDG 16 Peace & Justice
Africa
Europe
Asia-Pacific
Americas
0% 20% 40% 60% 80% 100% 120%
48 Few companies in the industries most impacted by corruption address peace & justice (16)
Some companies in the industries Car companies, which have most impacted by charges of fraud suffered recently on emissions- and corruption were extremely related scandals, also avoided active in communicating on SDG discussing justice issues. Of the car 16, Peace & Justice. Julius Bär and companies in the SCR500, only VW Banorte were standouts in the and Toyota addressed this SDG at banking industry. However, many of all, and only VW at a significant their peers only offered limited level. This was not enough to visibility on this SDG, if they offered counter the over 100 reports on any at all. Most U.S. and Australian fraud issues in the industry. banks, in particular, were disinclined Opportunities remain for car to discuss the issue, offering only a companies to address stakeholder handful of statements on the concerns and seek leadership on subject and leaving a significant these issues both within the positive image opportunity on the industry and compared to other table. industries that also face risk.
Banking statements on Car industry statements on Peace & Justice Peace & Justice
Julius Bär Banorte Volkswagen BNP Paribas BBVA Access Bank Barclays Toyota Motor Bank of Montreal Bank of America
0 200 400 600 800 1000 0 50 100 150 200 250 300
Number of statements in annual report Number of statements
49 Global media coverage shows that corruption impacts all industries
Over the last five years, coverage of opportunity to frame themselves as fraud and corruption has been responsible members of their strongly visible across multiple industry. This image can help them industries. The banking industry boost their position with both was strongly affected as the trust investors and customers and can meltdown was ongoing and sales scandals were strongly visible in the also help redeem the overall media. The car industry also attitude towards their industry. For suffered amid the emissions investors, the SCR500 data on scandal. But no industry was truly SDG16 can offer a way to avoid immune. Companies in the SCR500 investing in companies prone to have the corruption scandals and fraud.
Volume and tone of coverage fraud/corruption, 2013-2017 international TV News, Industries Top 20
Banks Car industry Media Pharmaceutical industry Airlines/railways Mineral oil Insurance Building/construction Entertainment Financial services Retail Savings banks Electric engineering/IT Aerospace/defence Healthcare Advertising Hotels/restaurants Consulting/accounting Security Industry Lawyers 0 20 40 60 80 100 120 140 160 180 200
Negative No clear tone Positive 50 Petrobras and Volkswagen have been most exposed to negative news on fraud and corruption
The media multiplies information report: “Our management has and structures awareness of identified material weaknesses in stakeholder groups. The company our internal control over financial most mentioned with regard to fraud reporting, and has concluded that and corruption in international our internal control over financial business media in recent years has reporting was not effective at been Petrobras from Brazil. In light December 31, 2016, which may of the stark consequences of the have a material adverse result on corruption scandal, the company our results of operation and wrote in its 2016 20-F financial financial condition.”
Volume and tone of coverage fraud/corruption, 2013-2017 Business media / international TV News, companies Top 20
Petrobras VW 1MDB BBI Airport Siemens VW Petrobras Deutsche Bank BayernLB Samsung Weinstein Glaxo Smithkline Schlecker UBS News Corporation JBS SA Glaxo Smithkline JP Morgan Chase Deutsche Bank Thyssen Krupp AG Adidas Odebrecht Aizoon SL HSBC Construtora Odebrecht Unicredit BTG Pactual Samsung Barclays Vatican Bank Airbus Group Daimler Adidas Willy Selten Citigroup Renault Nissan Fosun Group HSBC 0 50 100 150 200 250 0 20 40 60 80
Negative No clear tone Positive Negative No clear tone Positive 51 Senior management exposed to massive reputational risks on fraud / corruption claims
Sustainable institutions making in recent years. For example the peace and justice a key priority on content of the “Panama Papers” their agendas not only safeguards and “Paradise Papers” was shared the reputation of companies but globally, exposing senior executives also the image of senior and owners of businesses to management. The global media negative news on tax avoidance, play a pivotal role when it comes to fraud, money laundering, and other unveiling fraud and corruption forms of misconduct. Executives cases. Awareness for investigative are well advised to promote journalism linked to tax withdrawal sustainable institutions and related has been on the rise ethics.
Volume and tone of coverage fraud/corruption/taxes, 2013-2017 Business media / international TV News, managers Top 20
Dreyfus, Robert-Louis Lee, Jae-yong (Jay) Hayes, Thomas Batista, Joesley Winterkorn, Martin Odebrecht, Marcelo Grossmann, Jochen Brady, Tom Esteves, Andre Brown, Arthur J. Ecclestone, Bernie Reilly, Mark Guo, Guangchang Tshabalala, Ellen Shkreli, Martin Schettino, Francesco Motsoeneng, Hlaudi Middelhoff, Thomas Low, Jho Blesa, Miguel 0 2 4 6 8 10 12 14 16 18
Negative No clear tone Positive 52 Fund concept: SDG 17 best performers – Partnerships for the Goals
Overall
Cemex
Deutsche Telekom
Roche Group
Bayer
Inditex
0 50 100 150 200 250
Americas Europe
Cemex Deutsche Telekom
Roche Group Banorte Bayer Bank of America Inditex AbbVie BNP Paribas
0 50 100 150 200 250 0 50 100 150 200
Asia-Pacific Africa
SoftBank Group Mondi Infosys
Sojitz Grindrod Limited Cebu Air
0 10 20 30 0 5 10 15 53 Content from C-level executives not yet the main source of SDG mentions
Section of Annual Report Featuring SDG Content
Chairman CEO CEO & Chairman combined Management CSR Finnacials
The bulk of content on the SDGs Despite this, it is important for C- does not appear in letters and level executives to weigh in on the other content from CEO-level SDGs. Showing that the C-suite is executives in the annual report, but directly, personally committed to as part of the overall financial report, management report, of corporate SDG focus in a key specialized CSR section. indicator of a company’s desire to This is partly because the number actively contribute to their of pages allotted to these community and demonstrates an communications from C-level awareness of how all stakeholders executives tends to be more – including investors – benefit from limited. SDG engagement.
54 Creating a Methodology for Investing in a Portfolio of Socially Responsible Assets by Alfred R. Berkeley, Joseph A. Cajigal, and Conor Platt
Overview There are numerous philanthropic The SCR brings accountability and financial initiatives. Many fail or become transparency to the United Nations’ slowly ineffective. So why is this one ambitious Sustainable Development worth your participation? Goals for 2030. Understanding the This initiative began with the signing of complexities of operating within the United the Sustainable Development Goals Nations bureaucracy, senior United (SDGs) in September 2015 at the United Nations officers and advisors established Nations. The SDGs are ambitious a non- profit foundation outside the United successors to the Millennium Nations. It is designing a Global Development Goals (MDGs) established Sustainability Index, and its charter is to in the year 2000. The Millennium bring positive attention to companies and Development Goals were an initial set of countries that are moving toward goals that in some part have succeeded, genuinely more sustainable businesses but in many other areas were inadequate and to create financial instruments that or poorly defined. Some of the goals were enable investors to support these greatly affected by the financial recession companies. It is known as UNGSII. Here of 2008, but the recession is not the only is our approach: reason that the MDGs were unsuccessful. The Millennium Development Goals failed because there was little to no accountability. Furthermore, there was close to no transparency into what was accomplished and what was not accomplished. Additionally, companies were able to claim compliance by purchasing the use of a United Nations logo without effectively moving toward sustainability. The SDGs are the result of serious soul searching by senior United Nations officials, heads of states and their advisers. There was plenty of blame to go around. Specifically, this new initiative is designed to fix those roots of failure. 55 Creating a Methodology for Investing in a Portfolio of Socially Responsible Assets by Alfred R. Berkeley, Joseph A. Cajigal, and Conor Platt
Socially Responsible Investing Analysis governance as well as the environmental We analyze a global universe of stocks performance of a company as part of the looking for high quality sustainable investment decision is carried out with the companies across all sectors and aid of over 100 social and environmental industries. The global universe that we criteria, selected specifically for each use covers about 2500 issuers, and is industry. We adjust the criteria to keep up updated on a quarterly basis. We use with the latest developments and findings. third-party sources as well as our own As a leader in this type of analysis we proprietary analysis to make investment work hard to apply quantitative measures decisions. The assessment of social and of what are essentially qualitative topics.
56 Creating a Methodology for Investing in a Portfolio of Socially Responsible Assets by Alfred R. Berkeley, Joseph A. Cajigal, and Conor Platt
Proactive Industry Metrics We take a “best in practice” approach to ensure that all sectors and industries are represented, with higher thresholds for high carbon and controversial industries. On an annual basis, we examine the key sustainability & governance metrics by industry. We want to ensure that a current constituent is worthy of further inclusion. For prospects, we are looking for the leaders within an industry. We exclude any companies with severe violations against the UN Global Compact Principles or a low score regarding SDG compatibility of their product portfolio. The resulting buying universe is a broadly diversified, global universe against which to apply our deeper SDG investment SDGs in their annual reports tend to methodology. receive high shares of support in the media. If companies stress SDGs in their annual reports and the media sees a gap Corporate Commitment Analysis in reality, companies are likely to attract The corporate commitment factor is adverse publicity and subsequent provided by UNGSII using leading media negative reactions from stakeholders analyst Media Tenor's media sentiment such as investors selling and consumers data as a control system. It allows walking away. investors to see if companies are UNGSII conducts a detailed analysis of accurately representing their legally binding statements by the commitments to the SDGs. Additionally, company incorporating SDG goals into media sentiment data can help identify their business practices and holds them to companies that are committed to the account year over year. UNGSII analysts SDGs but not yet able to convey this read and categorize the annual reports of information effectively to the media. companies and central banks according to Companies that are strongly visible on the direct and indirect references to the
57 Creating a Methodology for Investing in a Portfolio of Socially Responsible Assets by Alfred R. Berkeley, Joseph A. Cajigal, and Conor Platt
SDGs.A media Impact study is conducted We specifically look at the following: analyzing the business media and how 1) Fundamental prospects for growth - they report on these companies. (e.g., returns on invested capital, Journalists and other corporate sales, and earnings) stakeholders’ views are compared to the 2) Incremental changes in earnings - views of financial analysts and their (e.g., earnings revisions) perception of financial and non-financial value drivers.A corporate assessment 3) Valuation -(e.g., measuring earnings, ranking is made. sales, enterprise value, book value and free cash flow) 4) Price momentum - (e.g., focusing on Financial and Investment Analysis fundamentally driven price changes) Financials represent the largest volume of data, combining publicly available 5) Relative Strength - (e.g., evaluating financial forecast and historical data. We each stock relative to its peers) break financials down into the following 6) Technical trend - (e.g., evaluating Fundamental components: Growth, price, liquidity and volatility) Earnings Revisions and Valuation. We also employ technical analysis focusing Portfolio Construction on Relative Strength, Trend and Using a proprietary factor weighted Momentum analysis. approach, we rank each company against the overall universe by Environmental, Social, and by Governance strengths and by Financials. In constructing the portfolio, we are guided by the work of Henry Markowitz’s thesis “Portfolio Solution” (1952), by William Sharpe’s Capital Asset Pricing Model (1964), by A.G. Becker and by Gary Brinson et. al. “Determinant of Portfolio Performance” (1986). We employ current versions of Modern Portfolio Theory which provide a framework for seeking to maximize returns at a given level of volatility. 58 Creating a Methodology for Investing in a Portfolio of Socially Responsible Assets by Alfred R. Berkeley, Joseph A. Cajigal, and Conor Platt
When constructing the portfolio, the • Tracking Error - measuring of the following key Modern Portfolio Theory standard deviation of the difference statistics are used: between a selected market index and a portfolio’s quarterly returns • Diversification - considering the number of holdings, security and sector • Information Ratio - measuring of the weightings and country weightings risk adjusted return of the portfolio
• Standard Deviation - measuring Our portfolio will usually be comprised of volatility or risk between 100 - 150 constituents with a broad exposure to companies classified • Upside and the Downside Capture by varying style and market capitalization. Ratios - measuring portfolio- performance relative to a market index during specific periods
• Beta - measuring an asset’s risk in relation to the market
• Alpha - predicting incremental return from the portfolio when the market is stationary
• R-Squared - calculating the statistical measure representing the percentage of the portfolio’s or security’s movements
59 Creating a Methodology for Investing in a Portfolio of Socially Responsible Assets by Alfred R. Berkeley, Joseph A. Cajigal, and Conor Platt
Final Thoughts Sustainability and implement their In summary, we are seeking your commitment in their business. By pooling participation in this new UNGSII initiative the resources of many investors, we because it is designed to incentivize mean to send a clear message to companies to commit to Sustainable companies and governments that major Development while it should earn you a corporations and world leaders must solid return on your investment. There commit to sustainable activities and that are, of course no guarantees of good the institutional investment community will financial performance. Our approach is invest in companies that commit to doing straightforward: we apply traditional the right thing. Sustainable development investment rules to a select universe of is on the cusp of taking off. We need your companies that have committed to help in sending a clear, loud message. Join us.
60 Contributors
ANIS ASGHAR Anis is the CEO of Clan Capital a family office based in London. Following a career in M&A for a US telecoms business, He was a pioneer in founding a business in China in the late eighties. Following the sale of this business, he spent time with the family foundation, investing in emerging technology including cyber security, real estate, and hospitality. Having spent over 30 years in the City of London, Anis brings a wealth of experience in managing capital and investment structures. As part of the family office he has been a director of companies in the US, Australia, India, France, Sweden, and the UK. As CFO of UNGSII, he is responsible for the acquisition, deployment, and management of the foundations capital.
ALFRED R. BERKELEY, III Al resumed the Chairmanship of the Firm in January 2013, a position previously held from 1996 to 2006. Al was President of NASDAQ Stock Market, Inc. from 1996 until 2000 and was Vice-Chairman until 2003. Prior to returning to Princeton Capital Management, Al was Chairman of Pipeline Financial Group, Inc. Earlier in his career, as a General Partner of Alex. Brown & Sons, Al served as a software analyst where he was designated a First Team All American analyst. He has served as a Director of a number of companies, institutions and non-profit organizations including Safeguard Scientifics, Comshare, Cognos, Webex Communications, ACI Worldwide, Realpage, Edgar Online, The Nature Conservancy, The World Economic Forum USA and Johns Hopkins University among others.
JOSEPH A. CAJIGAL Joe is the Chief Executive Officer of Princeton Capital Management’ and is responsible for managing equity and balanced portfolios for clients. Previously, Joe was founder of Hudson Canyon Investment Counselors. Previously he was the Executive Officer responsible for the management of Fiduciary Trust Company International’s ("Fiduciary") domestic mutual fund company, its non- U.S. mutual fund company and its registered broker dealer. During his tenure, he served as a member of Fiduciary’s Management committee, Fiduciary’s Executive committee, Division Executive for the Investors Services Division, President of its tax planning and compliance subsidiary and President of its New York Stock Exchange registered broker-dealer. Joe holds a BA degree in Mathematical Economics from St. Peter’s College.
MAFALDA DUARTE Mafalda Duarte is CEO of the Climate Investment Funds (CIF), an $8.5 billion multilateral fund accelerating climate action in 72 developing countries for over a decade. Since assuming her position in 2014, Mafalda has implemented with more than 300 investments a pioneering vision centered on blazing new paths in leadership and learning in scaled climate action. Mafalda is harnessing CIF’s unique business model to achieve the triple win of market creation, investment returns, and social inclusion. Prior to CIF, Mafalda served in a variety of high- level positions at the intersection of climate action and international development in over 30 developing countries, working within governments and organizations such as the African Development Bank and the World Bank.
61 Contributors
RACHELINE MALTESE Racheline Maltese works as a researcher at Media Tenor International focusing on the media portrayal of economic and political issues; she has been with the company since 2002. Her academic and professional background includes a journalism degree from The George Washington University and a stint in the Computer Assisted Reporting unit of the Associated Press. In addition to her work with MTI, she is widely published on pop-culture topics, and her work has appeared in media outlets like Salon as well as in academic texts from McFarland. She is based in New York City.
ROLAND SCHATZ Roland Schatz founded InnoVatio Publishing in 1985 and its research institute Media Tenor International in 1993. For the last 30 years he has been devoted to implementing social change. In 2008 he launched, together with Prince Ghazi of Jordan, the C1 One World Dialogue foundation to improve Inter-Faith-Dialogue. Since 2013 he serves as Senior Advisor to the Director General at the United Nations in Geneva. He is the founder of the UNGSII foundation in 2014 to support the implementation of the SDGs by creating transparent indices such as the SCR500 and providing data and know how to leaders from all sectors of life. Schatz teaches Constructive Disruption and Perception Change. He hosts masterclasses on ‘Unlearning Intolerance’ together with UN Academic Impact.
MATTHIAS VOLLBRACHT Matthias Vollbracht is the Director of Business Research at Media Tenor International in Vienna/Austria, Managing Director of Awareness Metrics, a platform for reputation risk and investment signal solutions and Chief Information Officer of UNGSII foundation. His research focuses on the impact of media on public opinion, stakeholder groups and the reputation of institutions and individuals. Furthermore, he explores the influence of media on asset prices and economic behavior, like investor and consumer confidence. Matthias Vollbracht has been working for major international clients with focus on reputation management, agenda-setting, target systems, crisis communication, management reputation, financial communication, and CSR. He has developed reputation insurance solutions based on empirical risk assessment. He holds degree in economics from the University of Mainz and has worked as a business journalist.
62 Companies Analyzed for the SCR500
Asia UltraTech Hindustan Petroleum Pegatron Hindustan Unilever PLDT Aditya Birla Group Hitachi Quanta Computer Advanced Card Genting Malaysia Berhad Reliance Industries Systems Hankook Tire Samsung Aeon Haseko Shandong Weiqiao Pioneering Group AIA Group HCL Singapore Telecommunications Air India HDFC Sinopec Group Alibaba Hindustan Petroleum Sojitz Asahi Glass Hindustan Unilever Sompo Holdings Bank Mandiri Hitachi Sompo Japan Nipponkoa Banpu Honda Motor Sony BHP Billiton Hyflux State Bank of India Canon Infosys Swire Pacific Innolux Taiwan Semicondctor Manufacturing Cebu Air Inpex Takeda Pharmaceutical Central Pattana ITC Tata Motors China Electronics Itochu Tata Steel China Mobile Japan Post Holdings Teijin Communications Japan Tobacco Telstra China Vanke Jardine Matheson Tenaga Nasional Chunghwa Telecom Jollibee Foods Terumo Ciputra Development Kao Tokai Carbon CITIC Group KDDI Top Glove Compal Electronics Kikkoman Toyota Motor CPC Kirin Vietnam Dairy Products Daikin Macquarie Vingroup Mahindra and Mahindra WH Group Delta Corporation (India) Marubeni Wilmar International Midea Group Xiaomi Denso Mitsubishi Electric Dongfeng Motor Group Mizuho Financial Group East Japan Railway MTR Corp Flextronics International Nan Ya Plastics Formosa NEC Genting Malaysia Nichirei Berhad Nintendo Hankook Tire Nissan Motor Haseko Noble Group HCL NTT DoCoMo HDFC Panasonic
63 Companies Analyzed for the SCR500
Africa Oceana South America Access Bank Air New Zealand Asenav Aspen Pharmacare Australia & New Avnet Astral Foods Zealand Banking Banco Bradesco Group Attacq Banco Security Billabong Barloworld Capricorn Bidvest Commonwealth Investment Group Bank of Australia BMCI CCR National Australia Botswana Insurance Cemex Bank Brait Cencosud Qantas Capevin Holdings Cielo Wesfarmers Cashbuild CMPC Empresas Westpac Bank Dangote Compañía de Woolworths Delta Corporation (Zumbabwe) Minas Distell Buenaventura Ecobank Ghana Middle East Credicoop Eskom Emirates Airlines Credicorp Foschini Empresas Copec Greenbay Properties Enel Americas Grindrod Limited Gerdau Liberty Two Degrees Itau Unibanco Holding Mondi LATAM Airlines MTN Group Petrobras Naspers Ultrapar Remgro Participacoes Safaricom Vale Sasol Stanbic Standard Bank Group Steinhoff International Tanzania Breweries Tsogo Sun Vodacom Zeder Investments Shoprite 64 Companies Analyzed for the SCR500
Europe Compass Group Ab Inbev Continental LafargeHolcim ABB Credit Suisse Group Legrand ABN Amro CRH Linde Accenture Daimler Lloyds Banking Group Adidas Danone LM Ericsson Aegon Deutsche Bank London Stock Exchange Air France Deutsche Boerse Lufthansa Group Air Liquide Deutsche Post LvOreal Airbus Group Deutsche Telekom Maersk Group Akzo Nobel Diageo Medtronic Allianz DNB Merck Andritz AG E.ON Metro ArcelorMittal Electricite de France Michelin ASML Electrolux Munich Re Group Assicurazioni Generali Enel National Grid Associated British Foods ENI Nestle Astra Zeneca Erste Group Bank Nokia Atlas Copco Evonik Industries Nordea Audi AG First Group (Greyhound) Novartis Aviva Fresenius Novo Nordisk Avon Products Geberit Novozymes AXA GlaxoSmithKline NXP Semiconductors Banco Bilbao Vizcaya Argenaria Glencore OMV AG Banco Santander H&M Hennes & Mauritz Orascom Barclays Hannover Re Otto Group BASF Heineken Holding Parmalat Bayer Henkel Pernod Ricard Beiersdorf AG Hermes Peugeot Berkeley Group Holdings HSBC Holdings Porr AG Bilfinger Iberdrola Prudential BMW Iceland Air Raiffeisen BNP Paribas Ikea Randstad Holding British Airways Imperial Brands RBS British American Tobacco Inditex Reckitt Benckiser British Land Infineon RELX Group BT Group ING Group Roche Group Caixa Bank Ingersoll Rand Royal Dutch Shell Carlsberg Intesa Sanpaolo Royal Philips Chiristian Dior KBC Group RWE Coloplast Kering Sainsbury Saint-Gobain 65 Companies Analyzed for the SCR500
Europe (cont.) North America Carnival Sampo 3M Centene Sanofi Abbott Laboratories Chipotle SAP AbbVie CIBC Sberbank Adobe Cigna Scania Aetna Cisco Systems Schneider Electric Agilent Technologies Citigroup Shire AIG Clorox Siemens Air Canada Coach Sonova Akamai Coca-Cola Standard Chartered Alcoa Cognizant Standard Life Allstate Colgate-Palmolive Statoil Alphabet (Google) Comcast STMicroelectronics Amazon Conagra Strabag SE AMD Costco Svenska America Movil CSL Swatch Group American Airlines Group CVS Health Swedbank American Express Danaher Swiss Re AmerisourceBergen Deere Talanx Amgen Dell Telefonica Apple Delta Air Lines Telekom Austria AG Applied Materials Disney Telenor Arconic Dole Food Tenaris Arrow Electronics Ebay Tesco AT&T Ecolab Total Bank of America Electronic Arts Trafigura Group Bank of Montreal Emerson Electric UBS Group Bank of Nova Scotia Enbridge UniCredit Group Baxter Energizer Holdings Unilever BB&T Equinix Valeo BCE Expedia Verbund AG Beckton Dickinson Express Scripts Holding Vinci Berkshire Hathaway Facebook Vivendi Best Buy Fannie Mae Vodafone Group Biogen FedEx Voestalpine AG Blackrock Femsa Volkswagen Blackstone Fifth Third Volvo Boeing Ford Motor Wacker Chemie Bristol-Myers Squibb Freddie Mac Wienerberger AG Canadian National Railway Fuel Tech Wolseley Capital One Financial General Electric WPP Cardinal Health General Mills Zurich Insurance Group Cargill 66 Companies Analyzed for the SCR500
North America (cont) Nationwide General Motors Netflix VMWare George Weston Nike Walgreens Boots Alliance Gildan Norfolk & Southern Walmart Goldman Sachs Northrop Gruman Walmex Green Mountain Nvidia Corp. Wells Fargo Grupo Bimbo Oracle Whirlpool Grupo Financiero Banorte PepsiCo Williams Grupo Televisa Pfizer Yum!Brands Herbalife Philip Morris Hershey PNC Financial Home Depot Praxair Honeywell International Procter& Gamble Hormel Prologis HP Publix Super Markets Humana Ralph Lauren IBM Restaurant Brands Intel Royal Bank of Canada Intercontinental Exchange Salesforce International Paper Sands Intuit Sprint JBS Staples Jet Blue Starbucks JM Smucker State Street Johnson & Johnson Symantec JP Morgan Chase Sysco Keurig Target Kimberly-Clark Tesla Kraft-Heinz Texas Instruments Kroger Time Warner Liberty Mutual Insurance Group TJX Live Nation Toronto-Dominion Bank Lockheed Martin Twenty-First Century Fox Macy's Tyson Foods Mattel United Continental Holdings McKesson United Technologies Microsoft UnitedHealth Group Molina Healthcare UPS Mondelez International US Bancorp Monsanto US Foods Holing NASDAQ Verizon Visa
67 Disclosure Statement
Warnings Regarding Financial Returns Additionally, we have had one year of strong results in the performance of the index that we constructed during The purpose of this booklet is to solicit your the year. Please do not assume that we will have commitment to and involvement in the United strong results again. Our investment team is very Nations Sustainable Development Goals. We experienced and wise from being humbled by the believe that humanity must create a large market again and again. Past results are no assurance community of interest dedicated to changing of future results. This index is relatively new and human behavior to live in harmony with this unproven. It is therefore risky. small planet. Some of this material has been prepared by Princeton One of the ways you can show your commitment Capital Management, LLC (“PrinCap”). This document is to invest in companies that are themselves is for information and illustrative purposes only and does not purport to show actual results. It is not, and operating in sustainable ways. We believe should not be regarded as investment advice or as a investment is a powerful tool that can send a recommendation regarding any particular security or powerful positive message to the corporations the course of action, nor any attempt to solicit investment shares of which we include in our index and a services in any jurisdiction where such offering has not powerful negative message to the corporations the been registered. shares of which we do not include. The UNGSII strategy performance figures set forth are We have developed a unique approach that guides hypothetical or simulated. As such, such figures do not which shares we include in our index and which represent actual trading, are not necessarily indicative shares we do not include. It is NOT the approach of future results, have certain limitations and may not reflect the impact that material economic and market that investors typically take. Specifically, we factors might have had on UNGSII results if PrinCap require that the company commitments in its were actually managing clients’ money. For example, legally binding regulatory reports to pursuing one such results may have under‐ or over‐compensated for of more of the Sustainable Development Goals. the impact, if any, of material economic and market This limits the universe of available candidates. factors, such as lack of liquidity. For example, in the litigious United States, some In addition, such figures are time‐weighted and good companies, with strong commitments to the annualized, include realized and unrealized gains and SDGs, do not discuss their commitment in their losses and are gross and not net of management fees regulatory filings. They are excluded from our or commission charges. index. No guarantee is made that the UNGSII Strategy will be successful; no representation is made that the UNGSII The conventional wisdom in investing is that Strategy will or is likely to achieve the results set forth restricting the universe of available investments above; and investors should be aware that past will reduce the returns available to investors. That performance, and simulated performance in particular, wisdom may be true, but we believe it is not. We is no guarantee of future results. An investment based are making a bet, with your money, that upon the UNGSII is speculative and involves risk), companies that are committed to sustainable actual performance may be lower or higher than the business practices will produce larger returns than performance data quoted, and investors may lose companies that are not so committed. capital.
68 How to work with UNSGII Foundation
5 options to work with us:
1) Contract the UNGSII Foundation to give access to additional data, or to have your portfolio analyzed with the same standards.
2) Send your asset managers to the Senior Executive Masterclass and become a certified SDG Expert.
3) Become a partner in the Global Youth Poll – see following pages.
4) Join the 25+5 SDG Cities Leadership Platform – see following pages.
5) Maybe you have your own concepts and ideas: lets have a conversation how we can cooperate.
Contact Information
UNGSII Foundation Roland Schatz Phone: +41 79 255 36 36 [email protected]
Visit: http://ungsii.org
69 Interested in your company’s individual SCR report?
If you want to see how your company stacks up, please contact [email protected]
70 Taking the next generation seriously – implementing the first Global Youth Poll Roland Schatz
The September 2015 agreement on The Global Youth Poll, providing Sustainable Development Goals reliable data updated quarterly. In requires all states to implement the the time of the largest migration 17 SDGs by 2030. By then, the next since World War II, it makes sense generation will be starting to take to understand what the next over from today’s leaders – but no generation thinks about the quality one yet knows how the next of their lives in their countries, how generation is thinking about these satisfied they are with their “global goals.” Therefore, the education, their job prospects and General Director of the UN in the ability of their region to deal with Geneva, Michael Moller, has invited environmental challenges. 70 years leaders from the largest youth after the YMCA was awarded the organizations to meet at the Palais Nobel Peace Prize for their global des Nations with the head of the footprint among the next generation, International Parliamentary Union, they are partnering with their 60 the representatives of the United million members with the Foundation Indigenous Nations, experts from for Global Community Health and the World Association of Public their school program “Brain-Breaks” Opinion Scholars and the Global reaching 3 million Children in 72 Sustainability Index Institute countries daily. In support of the UN, Foundation to develop a feasible the IPU and the United Indigenous concept reaching out to the next Nations the Big 6 Youth generation on a regular basis to organizations and the UNGSII are ensure that their opinion and building on the experience of experience become transparent and existing polls among young people are heard by the current leaders of in order to create a scientific the world. database to understand what youth Q. Global Youth Poll: Do you think boys or girls are treated better or the same?
Refused; Boys are 9% South America treated better Don’t Know; 5% North America Girls are Boys are treated better treated Middle East better; Treated the 31% Europe same
Treated Girls are Asia Don’t Know the same; treated 37% better; Africa 18% Refused 0% 50% 100% 71 Taking the next generation seriously – implementing the first Global Youth Poll Roland Schatz
across the world have in common, representativeness of the sample and what differentiates them, across and allowing for over-time comp- boundaries of religion, race and arisons of the same respondents. region. The survey will gauge how • The pollsters will be trained to run satisfied they are already with the the interviews amongst their age- implementation of the SDGs and groups and equipped with tablet where they see room for computers to ensure fast analysis improvement. In order to make sure and aid in the collection of high that the opinion of the next quality data. While the interviews generation is taken serious, UN, IPU will only take 15 minutes, each and UIN offer that representatives of pollster will take another 15 the youth will have the opportunity to minutes in order to explain the present the results together with the purpose of the Global Youth Poll, national experts from academia on show previous results and both national and international educate in a 1:1 situation the platforms. Media Partnerships will value & risks of polling. make sure, that the world is • An academic advisory board permanently informed about the under the leadership of Professor results. Dan Cassino (FDU and AAPOR Board Member) will supervise all The deliverables: stages of the polls, including the interpretations and presentations • A publicly available question- of the results to the national naire, 15 minutes long, with a parliaments and others. sample size of 1,000 split into 4 • UNGSII will ensure that teaching representative age groups: 10-14, material to empower all involved 15-19, 20-24 and 25-29. The to understand the advantages and sample and each sub-sample of shortcomings of polling will 250 young people will be selected become part of the education according to academic standards program ensuring a solid mix of urban- • First results presented Q1 2018 rural, diverse educational, gen- • WAPOR is accompanying the der, religious, and wealth publishing and debate amongst backgrounds. The samples will be the global experts on opinion partially refreshed each quarter, polling. ensuring the continued 72 Supporting 25 Cities and 5 Indigenous Communities already working to implement the SDGs by 2025
OiER and UNGSII partner with world leaders representing best practices in ALL 17 SDGs to create a realistic implementation by working hand-in-hand with the 25+5 City and Indigenous Community leaders to accelerate progress already by 2025.
https://www.ungsii.org/sdg-cities
73 Media Tenor International
MEDIA TENOR was founded in 1993 by eminent scholars within and outside of the area of communication science and public opinion research like Elisabeth Noelle-Neumann, Peter Glotz, Hans Mathias Kepplinger, Wolfgang Donsbach and Hartmut Schiedermair. MEDIA 7(125ZDVHVWDEOLVKHGDVWKH¿UVWPHGLDUHVHDUFKLQVWLWXWHWRIRFXVRQ continuous one hundred percent media analysis of opinion-leading news RXWOHWV7KDQNVWRWKLVXQLTXHDSSURDFKWKHLQVWLWXWHLVDEOHWRGH¿QHWKH awareness threshold. It expanded internationally serving universities, NGOs, governments, the media and the corporate sector.
As a strategic partner, MEDIA TENOR helps organizations understanding and leveraging the media. Through partnership with MEDIA TENOR, organizations are able to tailor messages to reach target audiences effectively, consequently reducing advertising cost and increasing the return on investment from an organization’s external communication.
7RGD\0(',$7(125LVWKHOHDGLQJPHGLDLQVWLWXWHLQWKH¿HOGRIDSSOLHG $JHQGD6HWWLQJUHVHDUFKVHUYLQJSDUWQHUVLQWKHVFLHQWL¿FJRYHUQPHQW and corporate world with strategic media intelligence. Every year experts and practitioners from media, academia, governments and NGOs meet at the International Agenda Setting Conference to exchange latest trends DQGLPSURYHPHQWVLQWKH¿HOGRIDSSOLHGPHGLDLPSDFWDQDO\VLV%HFDXVH MEDIA TENOR analyzes every single report in opinion leading media from print to TV and online media, our partners know whether their media relations activity has been relevant or not. MEDIA TENOR empowers them to create and maintain an active and strategic media presence, strengthening both credibility and reputation. The database open to the public has grown up to 90 million analysed statements – growing every day. These are now open for academia around the World in the Global Media Impact Center in Boston.
www.mediatenor.com | www.agendasetting.com 240 1985 2020
January 21 - 24, 2020 SDG Lab
Davos 2020 Hotel Meierhof