P1: TIX/XYZ P2: ABC JWBT558-IND JWBT558-Krosinsky October 3, 2011 18:51 Printer: Yet to Come

Index

A animal testing, 13 Abberley, Paul, 251 anticorruption measures, 309–10 Aberdeen Trust, 316 antisweatshop movement, 307 ABN AMRO India, 362 anti-trust Sherman Act, 193 Access to Medicine Index, 377 Apple, 42 ACGA. See Asian Corporate Governance aqua. See water Association (ACGA) Arctic National Wildlife Refuge, 142 Acuity Brands, 109 Ardour Global Alternative Energy Index, 99 ADM Capital Foundation (Hong Kong), Arisaig Partners, 313, 320 313, 316, 318 Asiainvestor, 154 AFL-CIO, 50 Asian Association of Independent Research Africa Providers, 318–19 future tends, 352–53 Asian Corporate Governance Association, indexes, role of, 350 318 international exposure, 350–52 Asian countries investing case, 346–48 about, 301–2 markets, 346 corruption and human rights, 309 sustainability issues, 348–50 CSR alignment, 305–6 sustainable investing, 345 CSR reports, 302–5, 310 Africa Green Fund, 350 disclosure, lack of, 314–15 African Development Bank, 350, 352, 406 environmental laws, 309 Agarwal, Mr., 250 ESG research, funding, 317–18 agriculture climate change risk, 225 ESG risk and integration, 315–17 agrochemicals, 22 exchanges, 314 Agua Caliente project, 110 hours of work, maximizing, 308 AkzoNobel, 72–73 http://www.pbookshop.comindicies, benchmarking, 319–20 alcohol production, 86, 135, 319 industrial action, 308 All Pension Group, 318 institutional capacity, 318–19 alternative labor and environment, 306–8 energy targets, 283 labor practices, 307–8 energy technologies, 118 shareholder value, 309 fuels, 266 COPYRIGHTEDAsian Sustainability MATERIAL Rating, 314, 320 Amazon, 31 asset allocation, 385 American Funds, 102 asset class, 386 American Water Works, 151–52 As You Sow, 121, 141 Amgen, 143 at-the-money options, 207 Anglo-Australian mining, 330 Australia, 304 Anglo-Iranian, 82 Australian Council for Overseas Aid, 331, Anglo-Persian, 81–82 335 animal cruelty, 31 automotive fuel standards, 361

455 P1: TIX/XYZ P2: ABC JWBT558-IND JWBT558-Krosinsky October 3, 2011 18:51 Printer: Yet to Come

456 INDEX

aviation, 264, 266 Data, 196 Aviva New Energy Finance, 14, 238 asset classes, 249–51 World Water Index, 146 Corporate Governance and Responsibility Bloomberg, Michael, 235 policy, 242 Blue Wolf Capital Management Engagement Management System, 250 challenges and opportunities, 419 Green Tires case study, 246–48 labor relations CODA, 421–22 history and investment philosophy, 242 result generating, 420–21 investment process, 242–43 board dynamics, 212 SRI portfolio, 243, 246 Bombay Stock Exchange, 359 supply chain, responsible, 248–49 Boston Common Asset Management, 316 sustainability matrix, 243–44 BOVESPA, 367, 378 Sustainable Future funds, 242 BP. See British Petroleum (BP) Sustainable Stock Exchange initiative, 251 BPA. See bisphenol-A (BPA) thematic analysis, 244–45 BQ-MQ rating, 257 valuation, 245 brand management, 236 British Petroleum (BP) B about, 53, 71–73, 81–84, 87–89, 101 Baldinger, Michael, 56 “Beyond Petroleum” strategy, 83, 89 Baldwin, Michael, 36–39, 44–45 Brown, Farnum, 238 Baldwin Brothers Inc., 35–39, 42–44 Brown, Neil, 247–48 banking sector in Canada, 324 Brundtland Commission, 12, 48 Bank of Ayudhya, 315 Buffett, Warren, 211–12, 435 basic needs of workers, 308 Bugg-Levine, Antony, 436, 438, 440 Baue, Bill, 92 building materials companies, 266 bauxite mine (Niyamgiri), 251 Bursa Malaysia exchange, 314 benchmarking performance, 5 Burt’s Bees, 8 Berkwits, Ethan, 112 business model, 31 best-performing companies, 366 butterfly effect, 211 best practices, 8 buyout, 404 big-box retailers, 31 biobreeding, 293 C biodiversity, 16, 58, 229 California Public Interest Research Group, BioExx Specialty Proteins, 109 134 biofuels, 264, 268–69 CalPERS, 411 Biofuels Corp., 269 http://www.pbookshop.comCalvert Foundation, 92–93 biomass energy, 293 Calvert Investments biomedicines, 293 Alternative Energy Solution Fund, 95, biomimetic production, 29 98–100 Bioneers Conference, 36 “Ambassador Program,” 94 biotechnology company, 143 “Calvert Letter,” 94 bisphenol-A (BPA), 141 ESG criteria, 95 Black Economic Empowerment, 348 Global Water Fund, 99–100 BlackRock, 102–3 High Social Impact Investments, 92 Mid Cap Growth Equity fund, 104 history, 91–93 Black-Scholes model, 207 large-cap growth fund market, 100–101, black swan, 205, 212 103–4 Blood, David, 433, 439 Large Cap Value Fund, 101, 103–4 Bloomberg Large Cap Value SAGE Fund, 101 about, 235–38, 352 methodologies, 96–102 P1: TIX/XYZ P2: ABC JWBT558-IND JWBT558-Krosinsky October 3, 2011 18:51 Printer: Yet to Come

Index 457

mid-cap growth fund market, 103 Centrica Renewables, 24 Mid-Cap Growth Funds, 103–4 CEO Water Mandate, 75 people, 93–96 CERES, 121 performance, 102–5 Investor Network on Climate Risk, 238 SAGE funds, 95–96, 100–102 principles, 172 Signature funds, 95–98 Chaoda Modern Agriculture (CMA), 42 small-cap growth fund market, 104 chemical industry supply and demand, 197 Small-Cap Growth Funds, 104 Chevron, 143 Social Investment Fund, 92 Chicago Board Options Exchange, 185 Solution funds, 95–96, 98–100 child labor, 219, 307–8, 318–19 Women’s Principles, 94 China World Values International Equity Fund, alternative energy targets, 283 92 carbon dioxide emissions, 278–79 Canada CSR, 303 banking sector, 324 emission reduction, 296 industry, sustainable investment, 325 energy breakdown by source, 287 investment scene, 324 energy consumption, 282 natural resources, 325–26 energy-efficiency norms, 288–90 oil sands of Alberta, 123, 127–30, 143 energy reserves, 284 tar sands, 89, 101, 143 energy trade balance, 285 US trade relationship, 326 environmental policies, 292–96 Canon, 31 environmental targets, 282 cap-and-trade, 185–87, 190 industries, new and emerging, 293 capital allocation, 235 policy setting, 290–92 carbon power generation, 281–82 capture and storage, 110, 266 rapid industrialization, 14 credits, 187 resource scarcity, 280–88 exposure, 236 solar companies, 43 footprint, 89, 178, 194, 397 suicides in factories, 307 pricing, 387 China-Africa Development Fund, 351 risk, 191–93 China Securities Index, 318 carbon dioxide Chipotle Mexican Grill, 43 abatement, 267 Christian Science organizations, 432 emission cuts and caps, 224 Churchill, Winston, 82 emissions, 2, 7, 89, 183, 185–86, 191–92 Ciba-Geigy, 148 emissions, China, 278–79http://www.pbookshop.comCisco, 39, 120 emissions, energy-related, 281 Citigroup, 126 Carbon Disclosure Project Citigroup Global Markets, 237 about, 75, 176, 238, 316, 325, 353, 371, Citizen Lobby of New Jersey, 134 408 City Developments (Singapore), 315 Leadership Index, 174, 376 City of London, 178 Carbon Leaders Index, 377 Clayton Act, 193 Carlyle Group, 405, 408 clean Carmax, 98 air, 134 cars, plug-in hybrid, 293 coal, 293 Cathay Pacific Airways, 302, 311 drinking water, 148, 152–53 CDC/Oxfam study, 407 energy, 14, 108, 139, 146, 186 Celtel/Zain, 409 fuels, 16 Center for Responsible Business, 429 technologies, 139, 279 Centre for Environmental Rights, 351, 370 water, 134, 146–47, 156 P1: TIX/XYZ P2: ABC JWBT558-IND JWBT558-Krosinsky October 3, 2011 18:51 Printer: Yet to Come

458 INDEX

Clean Air Act, 82 “Corporate Environmental Management and “clean-tech” investment, 324 Credit Risk,” 396 Clean Water Act, 82 Corporate Governance Watch, 309 climate change corruption, 31, 309, 329, 335, 338 about, 2, 17–18, 28, 32, 145, 169, 235, Corruption Perceptions Index, 350 264, 387 Corston-Smith Asset Management, 313 adaptation, 224–25, 227, 230, 270 cost accounting, 5 mitigation, 224, 349 cost green index, 5 policy, 88 cost per watt economics, 292 politics, 281 Coulson, Jennifer, 126, 129 risks, 266 Cranswick plc, 11, 22–23 Climate Counts’ Company Score Cards, Crawford Chemicals, 181–83 174 Crawford’s carbon risk, 194 Clorox’s Greenworks, 8 credit default swaps, 106 CME Group Inc., 55 credit ratings, 396 coal crop damage, 286 burning utilities, 87 CSRHUB’s Company Ratings, 174 consumption, 285 customer satisfaction, 30 fired power plants, 268, 278 cycle power plants, 266 mining industry, 318 reserves, 284 D Coca-Cola, 141, 208 Danone, 153 Code for Desirable Corporate Governance D’Arcy, William, 81 (India), 363 DAXglobal Alternative Energy Index, 369 Colorado Public Interest Research Group, Deane, Michael, 149 134 debt obligations, collateralized, 212 Columbia, 102 decarbonizing economies, 291 Commission Guidance Regarding Disclosure de Cordova, Michelle, 128 Relating to Climate Change, 176 Deepwater Horizon oil spill, 53, 71, 81, 320, commodity pricing shocks, 286 429 complementary medicines, 16 Deere and Company, 120 ConAgra, 141 Del Monte, 141 Confederation of Indian Industry, 363 demographic change, 277 ConnPIRG Citizen Lobby, 134 “Demystifying Responsible Investment ConocoPhillips, 143 Performance” (Mercer/UNEP), 394 consumer consumptionhttp://www.pbookshop.com patterns, 16 Denbury Resources, 110 consumer goods, throw-away, 29 depreciation of principal, 207 Cookie Crunch, 32 de Roett, Chris, 35, 42–43 Cooperative Asset Management, 316 desalination, 145 core business transformation, 4 Desjardins Group (Quebec), 131, 324 corporate development finance institutions, 352 governance, 262–63, 265, 274 DeWine, Mike, 435, 440 governance screening, 315 diabetes, type 2, 32 governance standards, 361 discrimination against women, 219 liability and risk, 15 distressed capital, 404 performance, 21, 217 DJSI. See Dow Jones World Sustainability responsibility, 263, 265, 274 Index (DJSI) risk, 270, 273, 275 dMASS, 424–28 social responsibility, 159 Dodge and Cox, 102 transparency, 142 Domini 400 Social Index, 83, 368 P1: TIX/XYZ P2: ABC JWBT558-IND JWBT558-Krosinsky October 3, 2011 18:51 Printer: Yet to Come

Index 459

Domini Asset Management, 37 Edmans, Alex, 433, 439 Domini Social Investments efficient-market hypothesis, 204 about, 81, 83 EIRIS, 373 BP assessment, 88–90 EISAL, 313 integrated business model alignment, electricity prices, 267 87–90 electricity sector, 268, 270 investment philosophy, 84–85 Electronic Industry Citizenship Coalition, key performance indicator, 85–87 307 stakeholder relations, 85 Emerging Market Disclosure Project, 316 “Dow 30” index, 366 emerging markets, global, 411 Dow Chemical, 101 Emerging Markets Private Equity Sustainability Goals, 4, 6 Association, 411 Dow Jones emissions about, 55, 206 allocations under EU ETS, 267 Dividend companies, 136 inventories, 267 Global Total Stock Market Index, 67, 69 management strategies, 267 Indexes, 54, 56 reduction, 14 Industrial Average, 366 Emissions Trading Scheme, 177–78, 188–89, Industrials, 37 263 World 80 Index, 70 employee engagement, 4 World Index, 67, 69–72 Employee Retirement Income Security Act, World Sustainability Index (DJSI), 43, 53, 438 55, 66–67, 367, 374 employee whistleblowers, 310 World Sustainability Leaders, 69 Encana, 130 Duke Energy, 96 Endangered Wildlife Trust, 351, 370 DuPont’s “zero waste” commitment, 4 end-of-life product disposal, 6 “Dying for Coal” report, 318 energy consumption, world, 280 E consumption per unit of GDP, 288 earnings before interest, taxes, depreciation, efficiency, 14 and amortization (EBITDA), 190, 246 efficiency control systems, 16 earnings before interest and taxes (EBIT), efficiency enforcement measures, 288 249 efficient products, 293 Earth Summit, 17 food chain, global, 286 Ease of Doing Business Index, 376 management software, 293 eBay, 31 http://www.pbookshop.comnon–fossil fuel, 282, 284, 286 ecofootprint, 4 resource security, 14 ecofriendly cleaning products, 8 security concerns, domestic, 292 ecological degradation, 116 technologies, alternative, 118 Ecological Footprint, 117, 121 energy-saving devices, 120 ecological footprints of mining, oil, and gas environment, social, and governance (ESG) industries, 118 about, 174, 212–14, 217, 236, 241, 261, ecological risks, 119 430 ecology, 11–12 indexes, country-level, 375–76 ecomagination marketing, 8 integration, 271, 273 “The Economics of Ecosystems and investment performance, 395–96 Biodiversity,” 226 performance, 273 ecopremium, 8 performance reports, 396–97 ecosystem services, 226–27 research, 272 EcoValuScreen, 408 risk, 49, 315, 320 P1: TIX/XYZ P2: ABC JWBT558-IND JWBT558-Krosinsky October 3, 2011 18:51 Printer: Yet to Come

460 INDEX

environment, social, and governance (ESG) Environmental Protection Agency, 2 (continued) Envisager Ltd., 149 screening, investor-lead, 319 EOG Resources, Inc., 142 SRI techniques, 394–95 equity beta, 386–87 environmental equity funds, socially directed, 28 control systems, 13 equity movements prediction, 208 cost of pollution, 187 Ertsberg mine (West Papua), 334 damage, 286 Esty, Dan, 1 degradation, 309 Esty Environmental Partners, 380 design and engineering, 30 ethical criteria, 13 dilemma, 182–83 ethical investor, 21 factors, 58, 68 ethical or socially responsible funds, 241 footprint, 408 European electricity utilities, 266 impacts and risks, 49 European Union legislation, progressive, 119 about, 188–89 management systems, 88 Emissions Trading Scheme, 177–78 performance, 424 water infrastructure, 148 performance, monetization of, 172 EV/EBITDA, 246 performance metrics, 169–70, 172, 174, expert group, 228 178–79 externalities, 211 protection, 293 extraction-related stocks, 432 regulation, 261 Extractive Industries Transparency Initiative, risk, 119, 182, 192 250, 352 risks and liabilities, 119 extrafinancial mission, 392 services, 15 extrajudicial killings, 338 stakeholders, 8 Exxon Mobil, 96, 143 strategies, 6 technologies, 101 F Environmental Defense Fund, 408, 410, FBOVESPA Corporate Sustainability Index, 417 369 Environmental Financial Products, 67 feed-in-tariff regimes, 292 environmentalists, 431 fertilizers and pesticides, synthetic, 16 environmentally-sustainable returns, 144 Fidelity, 102 environmental metrics fiduciary duty, 212–13, 314, 433–35 accounting standards, 176–77 finance innovation, 228 adaptability and innovation,http://www.pbookshop.comfinancial organizational, 171 accounting, traditional, 236 assets, performance of, 170 criteria, traditional, 50 branding and reputation, 171 performance, 432–33 data and metrics, 172 risk, 430, 434 drivers of value, 171 Financial Crisis Inquiry Commission, 206 investment performance, 171–72 Finch Paper, 419–22 operational efficiency, 171 First Solar, 32, 109 public disclosure, 173–74 First State Investments, 316 research/databases, third-party, 174–75 First Variable Rate Fund for Government risks and opportunities, indirect, 177–78 Income, 91 role of companies, 175 fishing industries, commercial, 125 sustainable investment, 170–72 fixed-income investment, 263, 265 Environmental Monitoring Group, 351, fleet logistics, 6 370 Flowserve, 154 P1: TIX/XYZ P2: ABC JWBT558-IND JWBT558-Krosinsky October 3, 2011 18:51 Printer: Yet to Come

Index 461

food chain, 277 global equities investment philosophy, food-related crises, 16 254–55 footprint Global Equity fund, 254, 258 carbon, 89, 178, 194, 397 investment decision, 257–58 environmental, 408 investment process, 255–57 water, 130 pay, making long term, 253–54 Ford Motor Company, 8, 32, 39, 42 portfolio construction, 258 forestry, 316, 318 Genworth Financial, 98 Forest Stewardship Council, 418 geographic risk, 219 Fortune 100 Best Companies, 395–96, 433 GLG Partners, 277 Forzani Group Ltd., 129–30 Global 100 Most Sustainable Corporations, fossil fuel energy, traditional, 139 174 fossil fuels, carbon-intensive, 28, 327 Global Climate 100, 367 401(k), 94 Global Compact (UN), 172, 250, 371 four principles, 29–30 Global Footprint Network, 115 fracking (natural gas), 142 Global Reporting Initiative, 82, 173, 237, fractals, 206 310, 362, 371 Franklin Templeton, 102 Global Venture Capital and Private Equity free cash flow, 246 Country Attractiveness Index, 347 Freeman, Bennett, 92 global warming, 224 Freeport-Indonesia, 334–37, 339 Global Water Fund, 99–100 Freeport-McMoRan Copper and Gold, Global Witness, 338 333–34 Goldman Sachs, 45, 396–97 fresh water, 145–47, 149–50, 152 gold mining, 139 FTSE4Good Index Series, 374–75 Goldstein, John, 436, 438, 440 FTSE Group/Financial Times, 369 good employer reputation, 218 FTSE KLD Select Social Index, 431 Goodguide’s product ratings, 175 FTSE US 500 Index, 431 Google, 31, 116, 136 Fukushima Daiichi nuclear plant (Japan), Gore, Al, 253 283 governance Fund for the Public Interest, 134 good, 16–17 fund managers, 30 social and corporate, 135, 144 fund performance, 24–25 governance risk, 50 Future Fund (Australia), 342 governance risk, true, 50 government intervention, 183 G http://www.pbookshop.comgrain production, 283 gambling, 31, 86, 119, 135, 319, 432 Grasberg mine (West Papua), 334–36 Gap, 98 Gray, Erin, 137 gap between rich and poor, 306 green gas-fired power generation, 278 agriculture, 293 gender equality, 350 buildings, 128 General Electric, 101 companies, great, 21–24 Ecomagination campaign, 21 consumers, 19 financial services, 8 investing, 107 generalized auto-regressive conditional investment themes, 108 heteroskedasticity, 203 marketing, 83 General Mills, 130, 141 solutions, 107–8 General Motors, 7, 50 transport, 15–16 Generation Investment Management transportation, 108 about, 316, 318, 433 GreenBiz, 175 P1: TIX/XYZ P2: ABC JWBT558-IND JWBT558-Krosinsky October 3, 2011 18:51 Printer: Yet to Come

462 INDEX

Green Century Capital Management Hong Kong, 304 background, 134 Horsehead Holdings, 108–9 Green Century Balanced Fund, 133–40 hours worked, maximum, 307–8 Green Century Equity Fund, 133–36 housing bubble, 213 shareholder advocacy, 141–42 housing prices, 205 greenhouse gas emissions HSBC, 47, 49 about, 2, 6, 15, 127, 152, 176–78, 183, HSBC climate change index, 49 267, 272–73 human capital, 236 China, 279 human capital management, 270 in U.S., 191 human rights Greenhouse Gas Protocol, 176, 178 about, 309, 314, 334 Greenpeace, 72 abuse, 308 Green Thinking, 23 record, 88, 123, 129, 212 greenwashing, 8 standards, 119 growth capital, 404 violations, 31, 337–38 GS SUSTAIN, 397 Hundred Group, 21 Guardian Capital, 130 Husky Energy, 130 Guffey Jr., John G., 91 HWR. See Highwater Research (HWR) hybrid batteries, 4 H hydro power, 283 Hain Celestial, 141 Halliburton, 53, 72, 74, 77 I halo effect, 365 Iberdrola Renovables, 99 Hang Seng Corporate Sustainability Indices, IBM, 6, 111, 136 319 Idex Technologies, 153 Hanwha Corp., 320 IFC-SinCo Sustainable Investment, 353 Hawken, Paul, 27, 36–41, 45 Ile de France, 228 Hawken’s principles, 39 illegal subcontracting, 219 Hawley, James P., 434, 439 impact, 435–36 hazardous waste generation, 31 indexes health and safety standards, 307, 318 architecture, 369–72 healthcare, 350, 360 company reactions to, 378–79 allopathic, 28 construction, 379–80 hedge fund, sustainability-focused, 277 criteria, right, 370 Henningsen, Carsten, 116, 118–20 ESG, country-level, 375–76 herd mentality, 215 http://www.pbookshop.comlessons form sustainability, 373–78 Hewlett Packard, 98 ranking as an, 369 high-carbon companies, 134 research quality and independence, high-efficiency appliances, 8 372–73 high-voltage inverters, 293 stakeholders, securing, 370–72 Highwater Global Fund, 27, 32–33, 35, thematic, 376–78 37–38, 44–45 what and why of, 366–68 Highwater Research, 27, 37 India assessment, qualification, 40–41 ESG factors and extrafinancial disclosures, assessment, scoring, 41–42 361–63 investment process, 42–43 rapid industrialization, 14 methodology, 40–42 sustainability issues, 359–61 portfolio profile, 43–44 sustainable investing market HIV/AIDS, 128, 161, 335, 350 opportunities, 361–62 H.J. Heinz, 141 Indian Companies Act, 361 P1: TIX/XYZ P2: ABC JWBT558-IND JWBT558-Krosinsky October 3, 2011 18:51 Printer: Yet to Come

Index 463

Indian Responsible Investment Research irrigation for agriculture, 153 Association, 319 Istanbul Stock Exchange, 371 Indice de Sustentabilidade Empresarial, 376 IT megatrends, 5, 8 Indonesia, 304 Ivy League endowments, 410 industrial agriculture, 31 Industrial Classification Benchmark, 67 J Inflection Point Capital Management, 179 The James Capel Green Book,22 corporate sustainability model, 162–63 Jantzi-Sustainalytics, 325 five-factor model, 163 Janus, 102 investment process, 164–67 Japan, 303 portfolio construction, 163–64 Johannesburg Securities Exchange, 348, 350, strategically aware investing, 161–62 367 information technology (IT) revolution, 3 Johnson, Neil, 57 information technology sector, 58 Johnson & Johnson, 136 innovation capacity, 236 JSE SRI Index, 370–71, 373, 375–76 Innovest, 159 Jupiter Ecology Fund, 11–25 Insight Investment about, 262–63 K biofuels, 268–69 Kehati Biodiversity Index (Indonesia), 318 case study reflections, 270–74 Kellogg, 32, 130 climate change case study, 266 key decision makers, 214 ESG issues, investment research on, key performance indicators, 87 263–66 Kiernan, Matthew, 159 European electricity utilities, 267–68 Kimberly Clark, 72 institutional investors, 241 Kinder, Peter, 83, 430 integrated gasification combined cycle power King III Code of Corporate Governance, 350 plants, 266 KLD 400 Social Index, 49, 135, 373–74 Intel, 136 Kleiner Perkins, 403 Inter-American Development Bank, 226 Kodak, 7 Inter-American Institute for Cooperation, Korea, 304 226 Korean Social Investment Forum, 319 Interface carpet company, 30 Kraft, 141 Intergovernmental Panel on Climate Change, Kroger, 141 183 Krumsiek, Barbara, 93–94, 106 internal rates of return, 292 Kurtz, Lloyd, 429, 438 International Energy Agency,http://www.pbookshop.com 14 Kyoto Protocol, 184, 187, 280, 291 International Finance Corporation, 352, targets, 268 362, 406 International Limited Partners Association, L 410 labor International Monetary Fund, 347 practices, 307–8 International Research Institute for Climate rights risk, 217 and Society, 225 standards, 119, 130 investment Langbein, John, 433–34, 439 about, 27–28 large-cap companies, 31 opportunities, finding, 38–43 Le Chateau, 130 portfolio risk, 169 LED televisions, 110 theme weighting, 39 LEED-certified green building, 121 investor, high-net-worth, 46 Legg Mason, 102–3 investor insight, 236 leveraged buyout, 404 P1: TIX/XYZ P2: ABC JWBT558-IND JWBT558-Krosinsky October 3, 2011 18:51 Printer: Yet to Come

464 INDEX

Levy` distribution, 206 mobile phones, 354 life-cycle, 120, 226–27 modern portfolio theory, 204–5 life of the investment, 227 Montgomery, John, 98 Lipper, 154 MOPIRG Citizen Organization, 134 Lipper Balanced Index, 139 Morgan Stanley Capital International living standards, 284 Indexes, 369 Lloyds Banking Group, 262 Morningstar, 154 London Stock Exchange, 7–8 Moskowitz Prize, 395 low-emission production technology, 107 motivation, mapping techniques to, Lydenberg, Steve, 83 436–37 motor vehicles, 266 M MSCI All Country World Frontier Market MacKinnon, Lisa, 137 index, 347 macro drivers, 38 MSCI All Country World Index, 165, 397 macroeconomic forces, 38 MSCI Emerging Markets Index, 367 Madras Aluminium Co. Ltd., 319 MSCI ESG Research, 13 Maersk (Danish shipping), 7 MSCI South Africa Index, 348 malaria, 161 MSCI USA ESG Select Social Index, 431 Malaysia, 303 MSCI World Developed index, 69 management quality, 50 MSCI World Equity Index, 121 mandate allocation, 385 MSCI World Index, 35, 66, 70, 154–55, Mandelbrot, Benoit, 206 254 Man Group, 277 Myanmar Oil and Gas, 316 Mao, Chairman, 167 myth of underperformance, 213 marine ecology, 318 marine energy, 266 N Marketplace (CBC), 124 Nabisco, 402 Massachusetts Public Interest Research Naisbitt, John, 1–2 Group, 134 Nalco Holdings, 109 mass transit transportation, 293 Nasdaq OMX Clean Edge Global Wind McDonalds, 136 Energy Index, 369 McKesson, 98 National Action Plan on Climate Change MCSI World Index, 43 (India), 360–61 Median Peer Group, 397 National Association of Water Companies, megatrends, 1–3 149 Menzli, Pierin, 56 http://www.pbookshop.comNational Environmental Protection Act, 82 Merck, 136 National Stock Exchange, 359–60 Merlin Ecology fund, 17 Natural Capital Institute, 27, 30, 37 metros, 283 Natural Capitalism: Creating the Next miasmic pollution, 286 Industrial Revolution, 27–28, 32, 36 Michelin, 247–48 natural food, 16 micro-loan fund, 125 natural gas extraction, 142 Microsoft, 136 natural resource military material, 319 depletion, 2, 36 military weapons, 135 shortage, 44 Millennium Development Goals, 346 Natural Step, 36, 117, 1145 Mineral Leasing Act, 82 nature, reinvestment in, 29 minimum wages, 307–8 Neste Oil (Finland), 269 mining sector, 58 Nestle,´ 141, 153 Mitsubishi UFG, 302 Newmont Mining, 102 P1: TIX/XYZ P2: ABC JWBT558-IND JWBT558-Krosinsky October 3, 2011 18:51 Printer: Yet to Come

Index 465

Newsweek Green Rankings, 174, 377, P 395–96 palm oil, 316, 318 nicotine products, 67 Pan-Africa Infrastructure Development nitrogen oxides, 283 Fund, 347 ‘No Dirty Gold’ initiative, 139 paperless settlement system, 7 normal distribution, 203, 205 Parnassus Workplace Fund, 395 Northwest and Ethical Investments LP, 123 passenger trains, 283 Acuity Funds, 130 peak oil, 14 corporate engagement program, 128–30 Peers, Jens, 99–100 Corporate Sustainability Scorecard, 126 pension funds, 215, 217 Ethical Balanced Fund, 130–31 pension plans, employer-sponsored, 324 Ethical Canadian Index, 130 PepsiCo, 136 Ethical Special Equity, 131 pesticide residues on food, 16 history, 124 Petro-Canada, 127 investment approach, 126–28 philanthropic models, 436 key products and performance, 130–31 philanthropy, 436 merger with Northwest Funds, 131–32 Philippines, 304 new direction, 124–26 Philips, 72 Norwegian Ministry of Finance, 430 Pictet Asset Management Norwegian Pension Fund, 319 companies not invested in, 153–55 Novartis, 116 decision makers, 148–49 Novo Nordisk, 33, 116 investments, 151–53 Novozymes, 269 methodology, 149–50 NRG Energy, 109 metrics, 150–51 nuclear energy, 119 Pictet Water Fund, 146, 152, 154–55 nuclear power, 31, 86–87, 126, 135, 266, Pigouvian tax, 187 283 PIRGIM Public Interest Lobby, 134 pollution control technology, 15 O pollution-linked deaths, 286 Occupational Safety and Health Pollution Prevention Pays, 3–4 Administration, 89 polychlorinated biphenyls, 101 Oekom Corporate Ratings, 174 Popper, Karl, 205 oil pork business, 22 drilling in Arctic, 142 portfolio and gas sector, 73 environmental groups’, 436 production decline,http://www.pbookshop.com 28 liquidity costs and risking market sands of Alberta, 123, 127–30, 143 disruption, 434 Ok Tedi environmental disaster, 332 risk, 169, 434 Ontario’s Feed-In-Tariff, 327 screening, 430, 434 open-pit mining, 334 values-based investing reduce problems organic foods, 13, 22 with, 431 organic market (U.K.), 22 Portfolio 21 Investments, 115 organic sales (U.K.), 23 forward-looking companies, 119–20 Organization for Economic Cooperation and history, 116 Development, 326 results, 120–21 out-of-the-money put options, 207 theory of sustainability and change, Overseas Private Investment Commission, 117–19 331 Portner, Hans Peter, 147–48, 151–52, 155 overtime remuneration laws, 307 Posner, Richard A., 433–34, 439 Owen, Dave, 149 The Poverty of Historicism (Popper), 205 P1: TIX/XYZ P2: ABC JWBT558-IND JWBT558-Krosinsky October 3, 2011 18:51 Printer: Yet to Come

466 INDEX

power generation, renewable, 281 renewable energy, 13, 100–101, 152, 224, precious metals, 44 268, 278 PRI, 316, 371 renewable portfolio standard, 291 PRI Academic Network, 47 RepRisk, 60, 317, 319 PricewaterhouseCoopers, 185 reputational risks, 302 private equity research and development, 228–29 about, 401 resource allocation increase, 410–11 depletion, 387 asset class, new SI activity in, 410 scarcity, 212, 277, 288, 296 best practices and case studies, 408–9 sector, 123 development finance institutions and, responsible investing, 313, 383 405–6 responsible investment, holistic, 274 emerging markets focus, 411–12 Responsible Investment Academy ESG methods, specific, 406–708 (Australia), 238, 319 firms, 50 Responsible Research, 313, 316–18, 320 future sustainability themes, 412–13 Reto Ringger, 75–76 listed equity investors vs., 409 return maximization, 213 as niche of general asset management, revenue transparency provision, 101 402–4 Review on the Economics of Climate Change sustainability investing, 404–5 (Stern), 172 Procter & Gamble, 136 Reynolds, George, 81 Proglio, Henri, 149, 152 Reynolds American Inc., 67 prospective methodologies, 213 Ringger, Reto, 54–55, 75–77 Prosperity Without Growth (Jackson), Rio Tinto ( West Papua) 423 about, 329–30 Provincial Credit Unions Centrals, 131 background, 331–32 proxy voting guidelines, 126 black listed, 330–31 Prudhoe Bay oil disaster, 88 business operations, 336–42 psychological barriers, 214 Ok Tedi environmental disaster, 332 PT Freeport Indonesia, 334 ramifications, 334–36 Public Interest Network, 134 “severe environmental damage,” 330 pyrite, 330 West Papua, 332–33 The Rise of Fiduciary Capitalism (Hawley Q and Williams), 434 Qualcomm, 136 risk http://www.pbookshop.comadjusted returns, 366 R factor, 386 radical resource productivity, 28–29 indicators, 263 Ramsey, Laurent, 154 management, 218–20 rare earth metals, 120 modeling, 5 raw materials, 219 riverine methods of waste disposal, 335, real estate, energy efficiency in, 318 337, 340 recycled materials, 107 Robins, Nick, 47 recycling, 13, 18, 29, 293, 361 Robinson, Jack, 107 Rees, William, 117 Roche, 116 Registration, Evaluation and Authorization RockPort Capital, 403 of Chemicals Regulation, 263 Royal Dutch Shell, 72–73, 102 regulatory bodies, 88, 267 Rubicon Technologies, 110 regulatory compliance, 185, 195 Rubin, Robert, 212 Reliance Industries, 302, 311 rule of law, 307 P1: TIX/XYZ P2: ABC JWBT558-IND JWBT558-Krosinsky October 3, 2011 18:51 Printer: Yet to Come

Index 467

Ruoff, Larisa, 142 small growing businesses, 403 Rural Planning Services Ltd., 23–24 smart-grid systems, 118, 293 Russell 1000 Index, 85 S-Network Global Water Price Index, 99 Russell 2000 Index, 102 social and environmental Russell 3000 Index, 395 commitment, 32 Russell Mid Cap Growth Index, 102 profiles, 126 values, 40 S social housing construction, 283 Sabesp, 153 Social Index, risk-managed, 431 safety, workplace and community, 88 social inequity, 28 safety legislation, 15 social investment funds, 35 Safeway, 141 Social Investment Organization, 124 SAM. See Sustainable Asset Management social investors, Kinder’s taxonomy, 430 (SAM) socially responsible investment (SRI), 12, Sandor, Richard, 67 19–20, 37, 45, 73, 108, 262, 393, 429 sanitation, 360 social metrics, assessing, 218 Sarbanes-Oxley Act, 435 social performance, 217–18, 220 Saskatchewan’s Potash Inc., 326 social responsibility reports, corporate, 315 Satyam Computers episode, 361 social risks and opportunities, 49–50 scenario planning, 5 Social Stock Exchange, 50 Schmidli, Denis, 148–49, 156 solar Schneider Electric, 120 electricity, 32 Schnitzer Steel, 109 power, 279, 282, 292–93 Scott, Lee, 5 roof shingles, 4 Scottish Power, 24 subsidies, 110 Securities and Exchange Commission, 2, technologies, 264 143, 176, 339 voltaic panel manufacturer, 317 Commission Guidance Regarding solutions economy, 29 Disclosure Relating to Climate Change, South Africa, 346–53 176 South Africa Government Employees Seeking Safer Packaging, 141 Pension Fund, 349 self-fulfilling cycles, 208 S&P IFCI Carbon Efficient Index, 377–78 Self Help Credit Union, 137 SRI. See socially responsible investment (SRI) Severn Trent PLC, 96 SSL International, 42 shareholder value, long-term, 21 stakeholder groups, 85 Shenhua Energy, 311 http://www.pbookshop.comStandard & Poor’s 500, 85, 121, 136, 140, Sherman, Robert, 72 395, 397 Shoppers Drug Mart, 121 Standard & Poor’s Indexes, 369 Shorebank Pacific’s EcoDeposits, 137 Star Trek cereals, 32 Siam City Bank, 315 Stephenson, Christie, 126 Siemens, 73 Sterlite Industries, 319 Siemens Sustainability Office, 72 Stern. Lord, 172, 235 Silby, D. Wayne, 91–92 subprime mortgage-backed securities, 106 SinCo/RisCura 2011 study, 410 sub-Saharan Africa, 346, 406–7 Singapore, 304–5 sub-Saharan Africa PEGP, 407 Singapore Technologies Engineering, 320 Suez Environment, 152 SingTel, 315 suicides in factories, 307 “sin” stocks, 57 sulfur dioxide, 186, 283 Six Sigma methodologies, 5 Suncor, 127 slavery, modern-day, 219 Suntech (China), 317 P1: TIX/XYZ P2: ABC JWBT558-IND JWBT558-Krosinsky October 3, 2011 18:51 Printer: Yet to Come

468 INDEX

Supervalu, 141 investing practice, sustainable, 56–57 supplier choice, 219–20 investment universe, 63–64 supply and demand balances, 277 media and stakeholder analysis, 60 supply chains, 171, 178, 218, 248–49 origins and evolution, 54–56 sustainability performance, 63 competitiveness of companies, 2 portfolio construction and risk execution, getting it right, 4–8 management, 66 factors, five, 49–50 portfolio management, 62–64 indexes, 365–67, 373, 375, 379, 381 research methodology, 57–58 innovation, 222, 226, 228–30 roles of analysts and portfolio managers, innovation investment, 229 62–63 mandates, 389, 391 scoring and valuation, 60–61 measuring, starting point for, 48–49 strategy, global active, 61 megatrend, as emerging, 1–3 sustainability advocacy and company performance system, 6–8 engagement, 74–76 as risk factor, 48 Sustainability Assessment Score, 72 scorecards, 8 sustainability scores and systemic risk, value, methods to assess, 5 73–74 vision, getting it right, 3–4 Sustainable European Equities Fund, 55 sustainability performance system Sustainable Healthy Living Fund, 377 defenders, 7 Sustainable Forestry Initiative, 418 dreamers, 7–8 sustainable investment framework losers, 6–7 allocations, integrated vs. targeted, 385–86 winners, 8 monitoring framework, 389–91 Sustainability Research and Engagement, risk and return, quantitative methods, 241 388–89 sustainable risk factors and ESF Beta, 386–88 capitalism, 258 values and beliefs, 384–85 economic development, 226 Sustainable Stock Exchanges, 132, 313–14 investing, 159, 211-215, 391 SUV fuel economy, 8 investment, 154, 170, 175 Swedish DFI Swedfund, 406 investment flows and pricing, 387 Swedish national pension funds, 131 investment rent capture, 387 Swiss Re, 54–55 living, 16 practices, 45 T Sustainable Asset Managementhttp://www.pbookshop.com (SAM) Talisman, 130 about, 53–54 “tar sands” oil exploration, 101, 143 “Alpha from Sustainability,” 63 Taseko Mines, 130 assessment questionnaire, 58–60 Tata Power (India), 317 companies, monitoring, 71–73 taxonomy of social investors, 430 Corporate Sustainability Assessment, 56, tax regimes, 306 60, 62, 65, 67–68, 74 Tedlow, Richard, 215 Dow Jones Sustainability World Index, Telefonica, 116 66–67 Tesla, 403 Equities Fund, 55 testing, bioanalytical and safety, 16 evaluation metrics, 59 Texaco, 148 Fair Value Model, 65 Texas City Refinery disaster, 89, 266 Global Active Portfolio, 64 Thailand, 305 global active strategy, 61, 63 thermal plant closures, 286 index construction/performance, 67–71 3M, 5 P1: TIX/XYZ P2: ABC JWBT558-IND JWBT558-Krosinsky October 3, 2011 18:51 Printer: Yet to Come

Index 469

timber, 146 Department of Labor, 94 tipping points, 221 energy consumption, 291 TNS, 121 nonfossil energy mix, 291 tobacco Private Equity Council, 410 about, 86, 119, 126, 135, 431 renewable portfolio standard, 291 litigation, 272 Securities and Exchange Commission, 2, stocks, 437 101, 143, 176, 337, 339 Toronto Stock Exchange, 326 Social Investment Forum, 432 torture, 338 United Steelworkers, 419 Trans-Alaska Pipeline Authorization Act, 82 Universal Declaration of Human Rights, 308 Transparency International Corruption Universal Ownership: Why Environmental Perceptions Index, 376 Externalities Matter to Institutional trend spotting, 5 Investors (UN), 172, 434 Trillium Asset Management Corporation, urbanization, 277, 284, 360 137–39, 238 urban waste management, 361 T. Rowe Price about, 102, 104 V Blue Chip Growth fund, 104–5 Valmont Technologies, 153 Small Cap Stock fund, 104 value(s) Trucost about, 430–32 about, 140, 172, 192, 194, 397 based indexes, 431 Carbon Intensity by sector, 195 based investors, 431 Trunow, Natalie, 105 creation activities, 8 driver, 214, 272 U long-term, 31 unethical conduct, 31 VanCity, 124, 324 Unilever, 4, 141 VantagePoint, 403 United Kingdom (UK) Vedanta, 249–51 Companies Act, 302–3 vehicle emissions, 16 Social Investment Forum, 17 vehicles, new energy, 293 United Nations (UN), 16, 146, 160 venture capital, 402–3, 405 Academic Network Conference, 398 venture capitalists, 437 Climate Change Conference Veolia Environment, 149, 152 Communication on Progress (COP), 349 Verite,´ 217–19 Climate Change Summit, 280, 290–91 Vestas Wind Systems, 11 Committee against Torture,http://www.pbookshop.com 331 Vivo Participacoes (Brazil), 43 Environmental Programme’s Finance volatility of a security, 203 Initiative, 394, 434 volatility smile, 207 Environment Programme, 214, 438 Global Compact, 172, 238, 250, 371 W International Labour Organization Walker, Robert, 124–26, 128–29, 131 conventions, 308 Wal-Mart Stores Inc., 51, 96, 101, 178 Principles for Responsible Investing, 160, Sustainability 360, 5–6 237–38, 251, 263, 313, 325, 390, Washington State Public Interest Research 434–35 Group, 134 staff pension funds, 160 waste management, 14–15 United States (U.S.) wastewater, 152 Chamber of Commerce, 142 disposal, 151 children’s health crisis, 32 management, 152, 229 debt levels, 208 treatment, 150, 152 P1: TIX/XYZ P2: ABC JWBT558-IND JWBT558-Krosinsky October 3, 2011 18:51 Printer: Yet to Come

470 INDEX

water Wiener Borse¨ VONIX¨ Sustainability Index, about, 145–55 369 clean, 146–47, 156 willful blindness, 214 degradation, 16 Williams, Andrew, 434, 439 drinking, 360 Williams Companies Inc., 143 footprints, 130 wind farm, 99 fresh, 145–47, 149–50, 152 wind power, 279, 283, 292–93 investments, 148 Winslow Management Company, 107–13 management, 14, 145, 148, 150 Green Growth Fund, 108–10, 112 market, 146, 148–49, 151, 154 Green Large Cap strategy, 108, 110–12 pollution, 318 investment process, 108–9 privatization, 150 performance considerations, 112 purification processes, 152 selection criteria, 111 quality, 327 Wipro, 315 scarcity, 318 World Bank, 160 shortage, 28 Green Bonds, 137 sustainability, 147 staff pension funds, 160 systems, municipal, 149–50 World Business Council for Sustainable toxic, 29 Development, 371 treatment systems, 153 World Summit on Sustainable Development, treatment technologies, 13 352 utility company, 151 World Wildlife Fund, 187, 371 wealth, 424–28 weapons, 86, 119, 126, 135, 319–20, 432 Z weather-related risks, 266 zero “White Paper on Corporate Governance in alpha, 431 Taiwan” (ACGA ), 318 volatility, 436 Whole Earth Discipline (Brand), 423 waste, 4 Whole Foods, 121 Zevin, Robert, 9

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