Belgisch Forum voor Duurzaam en Maatschappelijk Verantwoord Investeren vzw

1. The European trends in SRI-assets. Does Belgium keep its leading position?October 18th 2010 - SRI Week 2010 Belgisch Forum voor Duurzaam en Maatschappelijk Verantwoord Investeren vzw Forum Belge pour l’Investissement Durable et Socialement Responsable asbl Belgian Sustainable and Socially Responsible Investment Forum asbl/vzw

2. Agenda • Introduction by Hugo De Moor (President – Belsif) • European Trends in SRI-assets • Eurosif SRI 2010 study presentation by Matt Christensen (Executive Director - Eurosif) • Green, social and ethical funds in Europe 2010 Review by Davide Dal Maso (Head of the SRI department in Italy - Vigeo) • Progress, developments & achievements on the level of SRI transparency and quality by Herwig Peeters (Director - Forum Ethibel, President - AI CSRR) • What makes Belgium a leader? • The specificities of the Belgian SRI market by Stefaan Decraene (President - FEBELFIN, Chairman - Management Board Dexia Bank Belgium) • The legal & political initiatives: Controversial weapons exclusions & Minimal Norm by Philippe Mahoux (Senator - PS) • Questions & Answers • Reception

3. Agenda • Introduction by Hugo De Moor (President – Belsif) • European Trends in SRI-assets • Eurosif SRI 2010 study presentation by Matt Christensen (Executive Director - Eurosif) • Green, social and ethical funds in Europe 2010 Review by Davide Dal Maso (Head of the SRI department in Italy - Vigeo) • Progress, developments & achievements on the level of SRI transparency and quality by Herwig Peeters (Director - Forum Ethibel, President - AI CSRR) • What makes Belgium a leader? • The specificities of the Belgian SRI market by Stefaan Decraene (President - FEBELFIN, Chairman - Management Board Dexia Bank Belgium) • The legal & political initiatives: Controversial weapons exclusions & Minimal Norm by Philippe Mahoux (Senator - PS) • Questions & Answers • Reception

5. Governance • Governed by 8 National SIFs from European countries:UK, FR, DE, NL, IT, BE, SW, ES Funding Sources • Institutional Member Affiliates (85) Mission / Benefits • Develop Sustainability through European Financial Markets • Networking and Promotion for Member Affiliates • Research • EU Lobbying • Events and Communications • Initiatives and Partnerships Activities

7. Leverage and Reach through SIFs National SIFs in Europe: Belgium Denmark Finland France The Netherlands Austria, Germany, Switzerland Italy Norway Spain Sweden U.K. SIFs outside of Europe Asia Australia Canada United States

8. Eurosif Activities in 2010 Lobbying Research Initiatives & Partnerships Events/ Comm’s • EU Public Policy Position Papers • Transparency Guidelines • HNWI Survey • Workshops on Selected Topics • SRI Market Study • Media Partnerships • Public presence at EU meetings, investor forums • Responses to EC Consultations • Sector/ Thematic Studies Core Activities • Newsletter, Social Media • Coordination of EU SRI information, Regional SIF quarterly updates • Video streaming, website, Member Affiliate Servicing

9. European SRI Study 2010 19 countries covered Belgium Austria Germany Baltic States Poland Cyprus Denmark Greece Spain Finland France Sweden United Kingdom Norway Italy Switzerland 2 Market Segments CORE BROAD Created with the support of:

10. Global SRI Market is Growing and Regional Influence is Shifting 2010 2006 2008 Source: Eurosif Research

11. Size of the European SRI Market Total EU SRI assets under management have reached €4.986 trillion as of 31/12/09 Source: Eurosif Research * Re-calculated according to the 2010 Core SRI definition

12. Growth of European SRI Market SRI monetary, bond and equity funds significantly outgrew mainstream funds in 2009 Source: Eurosif European SRI Survey, EFAMA Factbook 2009

13. European Core and Broad SRI Core SRI - €1.2 trillion Broad SRI - €3.8 trillion Core strategies consist of norms- and values-based exclusions as well as different types of positive screens (Best-in-Class, thematic funds and others). Norms- and values-based exclusions are the most popular Core strategies in Europe, driven by the Netherlands and Nordic countries. Broad strategies consist of simple exclusion, engagement and integration, often in combination with one another. Integration, the inclusion of ESG risk into traditional financial analysis, is gaining ground with some European investors, encouragd by the PRI Initiative. Source: Eurosif Research

14. European Core and Broad SRI (2) Core vs Broad SRI Across Europe • Core SRI • Nordics and German speaking countries remain popular Core SRI markets • Broad SRI • Integration approach leads to large Broad SRI markets in France, UK and Spain

15. Core SRI Core SRI makes up to 10% of the total European asset management market Note: Bubble size represents the size of Core SRI domestic market Source: Eurosif

16. Broad SRI: Spotlight on Integration Strategy Integration is in the early stages according to the respondents • Investment process • 29% of respondents work directly and on a regular basis with their mainstream analysts • Practices • 36% practice integration on a case-by-case approach • Training • Only 11% provide to a large extent ESG training to the organisation’s non-ESG specialist investment management staff Source: Eurosif Research

17. Who are the Main Institutional Investors? Public pension and reserve funds lead the way, followed by universities and insurance companies. Corporate and occupational pension funds still hold a modest position amongst SRI investors. Source: Eurosif

18. Asset Class Diversification Bonds have replaced Equities as the preferred asset class for SRI investors. ‘Other’ is a growth area that encompasses private equity, commodities, real estate Source: Eurosif

19. Market Drivers in the Next Three Years Demand from institutional investors remains a key driver, along with international initiatives, external pressure and demand from retail investors. Source: Eurosif Research

20. Contact Details

21. Agenda • Introduction by Hugo De Moor (President – Belsif) • European Trends in SRI-assets • Eurosif SRI 2010 study presentation by Matt Christensen (Executive Director - Eurosif) • Green, social and ethical funds in Europe 2010 Review by Davide Dal Maso (Head of the SRI department in Italy - Vigeo) • Progress, developments & achievements on the level of SRI transparency and quality by Herwig Peeters (Director - Forum Ethibel, President - AI CSRR) • What makes Belgium a leader? • The specificities of the Belgian SRI market by Stefaan Decraene (President - FEBELFIN, Chairman - Management Board Dexia Bank Belgium) • The legal & political initiatives: Controversial weapons exclusions & Minimal Norm by Philippe Mahoux (Senator - PS) • Questions & Answers • Reception

22. Green, Social and Ethical Funds in Europe.2010 Review October 2010

23. Number of SRI funds Source: Vigeo (2010) +29% +27%

24. Number of SRI funds per country Source: Vigeo (2010)

25. Assets in the SRI funds industry +41% Source: Vigeo (2010)

26. SRI funds’ assets per country +92% Source: Vigeo (2010)

27. SRI funds’ assets: Country/Total (%) Source: Vigeo (2010)

28. SRI assets increase vs. MSCI World Index annual growth rate Source: Vigeo (2010)

29. Assets managed by European SRI funds over total UCITS Source: Vigeo (2010)

30. Assets managed by SRI funds over total UCITS in selected countries Source: Vigeo (2010)

31. Focus on Belgium (1/2) Since 2005, Belgium has gradually become one of the prominent markets for SRI in Europe, ensuring a stable and solid growth in terms of number of funds. On the other hand, assets saw notable increases, in particular between 2004 and 2007: Source: Vigeo (2010) +78% +76% +55%

32. The growth is notable also in comparison with the total Belgian AUM, making up 9.86% of the whole market, the highest percentage among the European countries. Mean and median trends confirm that the Belgian market is dominated by a few leading major players, as is the whole European stage: Focus on Belgium (2/2) Source: Vigeo (2010) Source: Vigeo (2010)

33. The size of green, social and ethical funds: mean Funds’ asset mean has increased from €78 mln to €86 mln per fund, showing a slight increase (10%), following two years of decreases (€112 mln in 2007 and €91 mln in 2008): The mean size has increased in all countries, except for Belgium (-28%) and Germany (-18%), The highest mean is that of Italian funds (€141 mln), followed by Dutch, French and UK funds (€126 mln, €123 mln and €116 mln respectively). Average assets for equity (€83 mln) continues to be lower than that for fixed income – bonds and money market – funds (€211 mln), even if higher than for balanced funds (€63 mln).

34. The size of green, social and ethical funds: median The median (€29 mln) has also slightly increased in comparison to 2009 (€28 mln) and remains still much lower than the average in every country, showing that all domestic markets are concentrated around a few leading funds. This datum is particularly evident in France (mean asset €123 mln, median €28 mln), in Austria (€88 mln, €27 mln) and in Germany (€59 mln, €23 mln).

35. The size of green, social and ethical funds: the largest funds in Europe Source: Vigeo (2010)

36. SRI funds: Breakdown by typology (AUM) Source: Vigeo (2010)

37. Top performing SRI funds in Europe (1 year returns, end of August 2010) Source: Vigeo (2010), elaboration on Morningstar data; returns calculated using Euro as base currency.

38. Best and worst SRI 1 Yr performing categories* Source: Vigeo (2010), elaboration on Morningstar data

39. Top holdings in SRI fund portfolios (as of June, 30 2010) Source: Vigeo (2010), elaboration on Morningstar data

40. Conclusions SRI AUM grew in absolute and relative terms. SRI remains a niche but its relevance has been increasing year by year, showing in some cases to be more dynamic than the rest of the industry. The crisis that affected the asset management industry in the last years seems to have pushed further sustainable investing, at least in certain countries where SRI is already affirmed. The general interest showed by market players, institutions and stakeholders enlarged investors’ focus to new frontiers, including new subjects (HNWIs) and new asset classes (private equity, commodities), favouring in the end the recovery of the market and contributing to the definitive affirmation of SRI.

41. BRUSSELS Rue du Progrès 333 / B7 1030 Brussels – Belgium T : +32 2 206 67 91 F : +32 2 206 67 90 contact@vigeo-belgium.com CASABLANCA Technopark - Nouacer Road PB 16435 - Casablanca - Morocco T : +212 5 29 00 38 83 F : +212 5 22 87 47 27 contact@vigeo.com MILAN Via d’Ovidio, 3 20131 Milan - Italy T : +39 02 36 51 81 10 F : +39 02 36 51 81 17 contact@vigeo-italia.com PARIS Les Mercuriales, 40 rue Jean Jaurès 93170 Bagnolet - France T : +33 1 55 82 32 40 F : +33 1 55 82 32 50 contact@vigeo.com Davide Dal MasoHead of Vigeo Rating - Italy T: +39 02 36518116davide.dalmaso@vigeo.com Federico PezzolatoCSR Auditor & ConsultantT: +39 02 36518113federico.pezzolato@vigeo.com

42. Agenda • Introduction by Hugo De Moor (President – Belsif) • European Trends in SRI-assets • Eurosif SRI 2010 study presentation by Matt Christensen (Executive Director - Eurosif) • Green, social and ethical funds in Europe 2010 Review by Davide Dal Maso (Head of the SRI department in Italy - Vigeo) • Progress, developments & achievements on the level of SRI transparency and quality by Herwig Peeters (Director - Forum Ethibel, President - AI CSRR) • What makes Belgium a leader? • The specificities of the Belgian SRI market by Stefaan Decraene (President - FEBELFIN, Chairman - Management Board Dexia Bank Belgium) • The legal & political initiatives: Controversial weapons exclusions & Minimal Norm by Philippe Mahoux (Senator - PS) • Questions & Answers • Reception

43. The European trends in SRI Does Belgium keep its leading position? BELSIF SRI week 2010 Progress, developments and achievements on the level of SRI transparency and quality in the sector 18th October 2010 Brussels, Febelfin Herwig Peeters, Forum ETHIBEL, AI CSRR

44. Belgium, a hub for SRI intelligence Title presentation • Under the Belgian presidency of the EU Council in 2001: • Green Paper “Promoting a European framework for corporate social responsibility”. Set out the principles underlying CSR and introduces some of the sustainability tools. • Inaugural conference on SRI, quality and transparency • Belgium: 19 years of (pro)activity in SRI • Belgium: pro capita the largest SRI investor in Europe • Belgium: leading the ranking of the relative share of SRI AUM vis-à-vis total UCITS since many years • 9,42% (Vigeo Milano) | 6,3% (Beama) | 8,9% (Mira-T) • Belgium: pioneer on a number of SRI issues • Is Belgium able to keep its catalysing role in terms of SRI innovation and quality management promotion? | 44

45. SRI biodiversity: strengths and weaknesses Title presentation • SRI concepts have been developed and diversified throughout the years in order to attract new kind of investors and to provide new product groups • Some areas of tension between ‘core SRI’ and ‘broad SRI’ (Eurosif terminology): • A value driven or “ethical” approach to SRI, with limited potential in terms of market share • A more “materiality” driven approach to SRI, with a more limited profundity, however with strong transition opportunities and bigger market potential • Passive and active strategies • Pluriformity creates fit and surviving products, but has its boundaries on the level of transparency and understanding | 45

46. Evolution Mira-T Index Publiek Duurzaam Beleggen (%) 1995-2009 Title presentation

47. Changing regulatory environment Title presentation • Regulation: the need to clarify/tighten the transparency and disclosure laws (Belgium, Europe). • Not even a “comply or explain” requirement • Self-regulation: ongoing discussions to enlarge the fiduciary duties to ESG risk management issues • UNEP FI AMWG • Self-regulation: upcoming codes of conduct regarding the incorporation of ESG considerations: • UN PRI, South Africa Code, … • Self-regulation: SRI Research Quality Standard • The 11 commitments (AI CSRR) + CSRR-QS • Regulation should not be the (only) driver, drivers should be: • Superior risk-adjustments • Ownership of the active or passive investment policies • Transparency and stakeholder dialogue | 47

48. The SRI supply chain, the actors, the players Title presentation Various production processes Multiple supply chains Different value chains However one identifiable process flow chart for all … This is the backbone for implementation of quality management systems This is the basis for driving audit and verification processes Expectations vis-à-vis transparency and supervision largely dependent on the nature of the player or the stakeholder | 48

49. Two systems are operational on the level of transparency and external supervision Title presentation • Eurosif SRI Transparency Code, version 2, 02/2010 • Eurosif (the European Sustainable Investment Forum) is a pan-European group whose mission is to address sustainability through financial markets • The code was created due to two key drivers: 1. The opportunity for funds to proactively clarify their approach to SRI and therefore, positively reflect their transparency to investors and other stakeholders. 2. Strengthen a proactive auto-regulation which contributes to the development and promotion of SRI funds by setting up a common framework around good transparency practices. • Type: comply AND explain • Guidance notes for fund managers; logo; disclaimer; one pager • Belgian signatories • External verification process under development: reality check www.eurosif.org/publications/european_sri_transparency_code | 49

50. Eurosif SRI Tranparency Code Title presentation • Section 1. Basic Details • Signatories should be clear about who they are and provide background information on the fund management company, and the fund(s) • Section 2. ESG Investment • Signatories should be clear about the fund(s) purpose and its (their) ESG investment criteria • Section 3. ESG • Signatories should provide clear information on the ESG research process of their investments. • Section 4. Evaluation and Implementation • Signatories should provide information on how the ESG research is used to build and maintain their portfolio • Section 5. Engagement Approach • Signatories should explain their approach to engagement if the fund has such a policy • Section 6. Voting Policy • Signatories should make clear their policies on voting | 50