360 Report $CompanySectorName$ $StoryName$$ReportType$ Inequality: An investor guide Social & Business Ethics 7 April 2016 Inequality What’s it all about? From the Occupy movement to Piketty’s bestseller, Capital, inequality has become a pervasive economic theme since the financial crisis. In this report, we launch the Kepler Cheuvreux Inequality Footprint to highlight the risks to business and their influence on factors of socio-economic Main author inequality. Our focus covers not just wealth inequality but also the material Sudip Hazra Head of Sustainability Research impacts from corporate misconduct, the facilitation of social mobility, & Responsible Investment sustainable supply chains, underserved product areas and emissions
[email protected] reduction which affect both shareholder value and levels of social and +33 1 70 81 57 61 income disparity significantly. The cross-sector framework includes the consumer, banking, capital goods, telco, extractives and pharma sectors. ESG research team Biographies at the end of the report IMPORTANT. Please refer to the last page of this report for keplercheuvreux.com “Important disclosures” and analyst(s) certifications. This research is the product of Kepler Cheuvreux, which is authorised and regulated by the Autorité des Marché Financiers in France. Social & Business Ethics 360 in 1 minute Key findings of the report Wage inequality already a shareholder issue The CEO Pay Ratio could be hailed as the inequality metric of our time. Through the SEC’s disclosure requirement on a median wage to CEO pay multiple, inequality of income is being established as an indicator for investors. Sectors with large low-wage contingents are responding to numerous forms of wage pressure, whether regulatory (UK “Living Wage” law), or as responses to business pressures (e.g.