……………………………………………...... SRI & SUSTAINABILITY SURVEY 2018

JUNE 2018 ……………………………………………...... CONTENTS

1 MARKET TRENDS 3

2 RESULTS 5

3 METHODOLOGY 9

4 CONTACTS 13

2 1. MARKET TRENDS We capture a range of views from across asset managers on the important elements of SRI/ESG; both as provided by the sell-side or other research providers; and their views on the corporate community. The tables show the overall findings for service, offering an extensive range of the last three years. All this data comes customization and functionality. from the Extel Market Trends online

ALL BUYSIDE What do you value in SRI/ESG Research/Analysis?

All Buyside All Buyside All Buyside All numbers in % 2018 2017 2016 Thematic Pieces 29.2 24.9 25.9 Stock specific analysis 20.6 20.2 24.9 Integrated into all research and advisory services 16.9 20.2 18.2 Depth of coverage 15.2 12.7 15.3 Climate change/green issues 18.1 22 15.7 Number of responses 119 8 146

To what degree do you agree with the following statements?

All Buyside All Buyside All Buyside All numbers in % 2018 2017 2016 CSR reports are valuable 34.4 28.8 33.7 Companies take sustainability seriously 29.2 35.2 30.3 Sustainability issues impact stock values 36.4 36 36 Number of responses 84 7 127

HEDGE FUND COMMUNITY What do you value in SRI/ESG Research/Analysis?

Hedge Funds All numbers in % 2018 Thematic Pieces 37.7 Stock specific analysis 17.1 Integrated into all research and advisory services 16.2 Depth of coverage 12.8 Climate change/green issues 16.2

3 To what degree do you agree with the following statements?

Hedge Funds All numbers in % 2018 CSR reports are valuable 37.5 Companies take sustainability seriously 30 Sustainability issues impact stock values 32.5

SRI & Sustainability - The Numbers of Firms & Individuals

Buyside Average Average Buyside Firms Broker Firms Total SRI & SUSTAINABILITY Individuals Individuals Team Size Team Size voting Nominated Analysts voting Nominated (top 10 firms) (all firms)

Corporate Governance 52 76 28 50 142 4.0 5.9 Integrated Climate Change 58 83 27 48 140 3.5 5.8 SRI Research 106 161 31 99 949 13.8 19.9

4 2. RESULTS

BROKERAGE

Leading Pan-European Brokerage Firm - SRI & Sustainability (Based on Commissions Paid) by Key FMs Position PrevPos Firm Name % Momentum* 1 6 Exane BNP Paribas 15.3 p 2 1 HSBC 13.4 q 3 3 Kepler Cheuvreux 12.5 - 4 4 Société Générale 11.7 - 5 5 10.3 - 6 8 Oddo BHF / 8.7 p 7 7 UBS 5.4 - 8 9 of America Lynch 3.3 p 9 26 Credit Agricole CIB 2.3 p 10 10 CLSA 2.3 - 11 11 MSCI ESG Research 2.1 - 12 24 Proxinvest 1.8 p 13 14 Citi 1.6 p 14 28 EthiFinance 1.6 p 15 15 1.2 - 16 19 Mirabaud Securities 1.1 p 17 17 1.0 - 18 13 Sustainalytics 0.7 q 19 29 ISS (Institutional Shareholder Services) 0.6 p 20 21 Vigeo Eiris 0.5 p 21 30 BNP Paribas 0.5 p 21 36 Macquarie Securities Group 0.5 p 23 19 Oekom Research 0.3 q 24 16 0.3 q 25 25 Trucost 0.3 -

SRI RESEARCH

Brokerage Firms - SRI & Sustainability (Commissions Paid) by Key FMs - SRI Research Position PrevPos Firm Name % Momentum* 1 6 Exane BNP Paribas 16.1 p 2 2 Kepler Cheuvreux 13.9 - 3 1 Morgan Stanley 12.4 q 4 3 Societe Generale 12.1 q 5 5 HSBC 10.3 -

Investment Individuals - SRI & Sustainability (Based on Commissions Paid) by Key FMs - SRI Research Position PrevPos First Name Last Name Firm Name % Momentum* 1 6 Carole Crozat Exane BNP Paribas 8.5 p 2 1 Jessica Alsford Morgan Stanley 5.3 q 3 9 Jean-Xavier Hecker Exane BNP Paribas 5.1 p 4 27 Hugo Dubourg Exane BNP Paribas 4.9 p 5 5 Samuel Mary Kepler Cheuvreux 4.7 -

5 INTEGRATED CLIMATE CHANGE

Brokerage Firms - SRI & Sustainability (Commissions Paid) by Key FMs - Integrated Climate Change Position PrevPos Firm Name % Momentum* 1 1 HSBC 20.5 - 2 7 Exane BNP Paribas 12.4 p 3 3 Kepler Cheuvreux 12.2 - 4 11 Oddo BHF / Natixis 10.0 p 5 21 Credit Agricole CIB 9.0 p

Investment Individuals - SRI & Sustainability (Based on Commissions Paid) by Key FMs - Integrated Climate Change Position PrevPos First Name Last Name Firm Name % Momentum* 1 2 Ashim Paun HSBC 10.2 p 2 3 Wai-Shin Chan HSBC 7.8 p 3 7 Samuel Mary Kepler Cheuvreux 6.0 p 4 N/A Erwan Créhalet Credit Agricole CIB 6.0 - 5 9 Yannick Ouaknine Société Générale 5.7 p

CORPORATE GOVERNANCE

Brokerage Firms - SRI & Sustainability (Commissions Paid) by Key FMs - Corporate Governance Position PrevPos Firm Name % Momentum* 1 7 Exane BNP Paribas 16.5 p 2 2 Société Générale 13.6 - 3 1 HSBC 12.4 q 4 5 Morgan Stanley 11.1 p 5 3 Kepler Cheuvreux 10.1 q

Investment Individuals - SRI & Sustainability (Based on Commissions Paid) by Key FMs - Corporate Governance Position PrevPos First Name Last Name Firm Name % Momentum* 1 10 Carole Crozat Exane BNP Paribas 9.5 p 2 2 Yannick Ouaknine Société Générale 8.6 - 3 19 Hugo Dubourg Exane BNP Paribas 7.6 p 4 14 Jessica Alsford Morgan Stanley 4.8 p 5 6 Jean-Xavier Hecker Exane BNP Paribas 4.5 p

6 ASSET MANAGERS Asset Management firms best for SRI/ESG

Position Company Name Percentage 1 Amundi Asset Management 9.68 2 Allianz Global Investors 4.23 3 Union Investment 4.07 4 BNP Paribas Investment Partners 3.99 5 Norges Bank 3.80 6 Sycomore Asset Management 3.34 7 Mirova 2.92 8 APG Asset Management 2.32 9 Hermes Investment Management 1.97 9 Legal & General Investment Management 1.97 11 Standard Life Aberdeen 1.84 12 Financière de l’Echiquier 1.83 13 Investment Management 1.81 14 AXA Investment Managers 1.71 15 NN Investment Partners 1.61 16 Baillie Gifford 1.31 16 Robeco 1.31 18 Fidelity International 1.26 19 EFG - Hermes Asset Management 1.17 20 Kempen Capital Management 1.10 20 PGGM Vermogensbeheer 1.10 119 asset management firms received qualifying nominations

CORPORATES

Corporates best for overall ESG & Sustainability

Position Firm Name Percentage 1 HSBC Holdings plc 15.76 2 UBS Group AG 11.60 3 Morgan Stanley 9.29 4 BNP Paribas 8.64 5 Société Générale 7.02 6 Ørsted 5.57 7 Natixis 5.25 8 Robeco NV 4.46 9 Iberdrola SA 4.09 10 Enel 2.60 52 corporates received qualifying nominations

7 Corporates best for Corporate Governance

Position Firm Name Percentage 1 HSBC Holdings plc 14.98 2 UBS Group AG 11.12 3 Morgan Stanley 10.72 4 BNP Paribas 7.34 5 Société Générale 6.37 6 Amundi SA 5.27 6 Ørsted 5.27 8 Iberdrola SA 4.22 8 Robeco NV 4.22 10 Natixis 3.82 48 corporates received qualifying nominations

Corporates best for Sustainability

Position Firm Name Percentage 1 HSBC Holdings plc 15.71 2 UBS Group AG 11.65 3 BNP Paribas 11.47 4 Morgan Stanley 8.66 5 Société Générale 7.74 6 Natixis 6.50 7 Ørsted 5.53 8 Danone 5.44 9 Robeco NV 4.42 10 Iberdrola SA 3.32 42 corporates received qualifying nominations

* Momentum indicates change in percentage of total weighted vote received in Extel 2018 compared with Extel 2017. As such, a firm/individual may have an increase in momentum, whilst the ranking position remains static or declines; or a decrease in momentum, whilst the ranking position remains static or improves.

8 3. METHODOLOGY The Extel Survey 2018 took place between March 14 and April 27, 2018

Responses were sought from buy-side firms across , involved in the SRI and broader extra-financial market. In total we received responses from 211 individuals at 120 buy-side firms. In the questionnaire, respondents were either asked to rate firms/individuals 1-5; or score attributes/concerns on a 1-5 scale. In both cases 5 equated to 5 points, down to a rating of 1 equalling 1 point. When voting for firms, voters could score a maximum of two firms with the same rating, and give the same rating value to up to a maximum of four individual team members at any broker firm. All points received were then aggregated, and % based tables constructed. In the case of rating on attributes, using a 1-5 comparative scale, an average rating (mathematically obliged to be between 1- 5) was calculated. This enables comparative benchmarks to be provided. Across the SRI survey, we also received participation from IR teams at corporates. Following Fund Management firms took part in the Survey.

9 PARICIPATING BUYSIDE FIRMS

Buyside Firm Addenda Capital AEGON Asset Management (Europe) AG2R-AGICAM Aktia Asset Management Allianz Global Investors Amundi Asset Management Anima SGR Aviva Investors AXA Investment Managers Bank Degroof Petercam Bank J. Safra Sarasin AG Fondos Banque Privee Edmond de Rothschild (Switzerland) Wealth Basellandschaftliche Kantonalbank (BLKB) BCEE Asset Management BDF Gestion BlackRock Investment Management (US) BMO Global Asset Management BNP Paribas Investment Partners Boston Common Asset Management Caisse des Dépôts et Consignations CaixaBank Asset Management CalPERS Candriam Capfi Delen Asset Management Capital International ClearBridge Advisors Close Brothers Asset Management Comgest CPR Asset Management Credit Mutuel CIC Asset Management DEKA Investment Deutsche Asset & Wealth Management Deutsche Oppenheim Family Office DuPont Capital Management East Capital Asset Management Edmond de Rothschild Asset Management Egamo Electron Capital Partners Erste Sparinvest Kapitalanlage Eurizon Capital Exane Asset Management Federal Finance Fidelity International Financière de l’Echiquier Finvex Investment Management (India) -TRUST Franklin Templeton Investments Fukoku Life International (UK)

10 Buyside Firm Generali Investments Groupama Asset Management Gryphon International Investment Hermes Investment Management HSBC Global Asset Management (France) HSBC Global Asset Management (UK) Ibercaja Inflection Point Investments LLP Inocap J.P.Morgan Asset Management JS Asset Management Jupiter Asset Management Kornitzer Capital Management Asset Management La Francaise Asset Management Landolt & Cie Asset Management Le Conservateur Legal & General Investment Management Legg Mason International Equities () Lyxor Asset Management Mandarine Gestion Mellon Capital Management MFS Investment Management Migdal Group Mirova Mn Services MV Holding New Zealand Superannuation Fund Newton Investment Management NN Investment Partners Norges Bank Investment Management Northern Trust Global Investments Oddo BHF Asset Management OFI Asset Management Ostrum Asset Management PGGM Vermogensbeheer PIMCO PRO BTP Finance PROMEPAR Asset Management Putnam Investment Management R+V Versicherung International Raphael Street Raymond James Asset Management Robeco Rothschild Bank Saemor Capital Santander Schroder Investment Management SG Private Banking Sierra Global Management Sompo Japan Asset Management Standard Life Aberdeen State Street Global Advisors Sycomore Asset Management Talanx Asset Management Talence Gestion

11 Buyside Firm Trusteam Finance UBS Global AM UBS Wealth Management Union Investment United Nations Joint Staff Pension Fund Universal Investments Universities Superannuation Scheme Wellington Management WHEB Asset Management Zürcher Kantonalbank Asset Management

BUYSIDE VOTING BREAKOUT

Market Domicile % Of Vote Italian 5.44 Swiss 3.32 German 15.17 English 18.3 French 36.89 Nordic 4.44 Iberia 0.64 Benelux 4.73 USA (East Coast) 9.89 USA (West Coast) 1.06 USA (Central) 0.13

12 4. CONTACTS

Amani Korayeim Director, All-EMEA Sales and Product Development – II and Extel Research [email protected] Tel: +44 (0) 207 779 8535

GENERAL CONTACT [email protected] T. +44 (0)20 7779 8823 www.extelsurveys.com

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