@GRIAusConf_The stakeholder View: How reports are read and used - Amanda Dobbie
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The Stakeholder View –
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How reports are read
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and used
.
Chair: Lena Geraghty, Network Manager, Focal Point Australia,
Global Reporting Initiative
Dr Leeora Black, Managing Director, Australian Centre for Corporate Social
Responsibility
Peter Colley, National Research Director, Construction, Forestry, Mining and
Energy Union
Amanda Dobbie, General Manager, Bloomberg Australia and New Zealand
Nicola Hayhoe, Executive Leader of Policy, Research and Communications,
Ability Options
Bastien Mignonneau, Consultant, Banarra
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TABLE OF CONTENTS
1. How Bloomberg collects and analyses ESG data
2. What information do investors require?
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3. How Bloomberg presents this information
4. How investors use this information in their decision making
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process
4. HOW DOES
BLOOMBERG
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COLLECT DATA
>>>>>>>>>>>>>>
5. ESG GEOGRAPHIC COVERAGE 5
Coverage increased 3,500 to 5,000 from 2009 to 2012
ESG data for 319 companies are available in Australia
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All rights reserved, Bloomberg Professional Service
6. DATA COLLECTION OVERVIEW 6
Bloomberg collects ESG data from publicly available information, such as CSR
reports, Sustainability reports and Annual reports
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Look for CSR reports
on company website
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Upload reports on
Bloomberg terminal
Take relevant ESG
data and display it on
Bloomberg terminal
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ESG USER & DATA ANALYSIS
Consistent growth in unique users and ESG data in the last 3 quarters
NO. OF UNIQUE USERS INCREASED NO. OF FIELDS USED INCREASED
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BY 48% SINCE 09-2010 BY 150% SINCE 09-2010
NO. of ESG Users No. of Fields Used
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30,000,000
3000
2500 25,000,000
2000
20,000,000
1500
15,000,000
1000
10,000,000
500
No. of Field Used
0 5,000,000
0
Sep-Oct 2010 Nov-Dec 2010 Jan-Feb 2011 Mar-Apr 2011
Source: Bloomberg Professional Service
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ESG USERS
Australia is the 7th largest ESG population in the world.
United States 30%
England 11% Global ESG data HITs
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Switzerland 4%
Italy, 1.4%
Japan 4% Lithuania, 1.2
Austria, 1.7%
Canada 4% %
Australia, 1.7 Other, 6.7%
France 4% %
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Australia 3%
Germany, 22.
Hong Kong 3% Japan, 2.2%
France, 2.3% 1%
Germany 3% Russia, 3.0%
China, 3.0%
Denmark, 3.8
Singapore 3%
%
Switzerland, United
China 2% 4.2% States, 17.6
Canada, 5.1
India 2% % %
Netherlands,
Italy 2% 7.8% England, 16.
South Korea 1% 4%
Netherlands 1%
Taiwan 1%
Brazil 1%
Spain 1%
South Africa 1%
Denmark 1%
Others 15%
Source: Bloomberg Professional Service
10. USERS BY ASSET 10
CLASS, INDUSTRY, POSITION
In Australia, largest ESG users are Equity Analyst in Investment Advisors/Money
Managers. It is the same trend as Global ESG Users.
GLOBAL AUSTRALIA
Equity
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Fixed Income
Other
Over The Counter
Foreign Exchange
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Commodity
Other
Analyst
PM
Other
Trader
Risk
Salesperson
Treasury
Executive Officer
Other
Investment Advisors/Money Mgrs
Universities
Broker Dealers - Regional
Broker Dealers - Global
Corporations
Hedge Funds
Banks - Regional
Insurance Companies
Pension Funds
other
Source: Bloomberg Professional Service
11. MOST USED ESG DATA 11
Most widely used fields are Governance
Fields both globally and in Australia. CDP
Top Global - Most Used ESG Data data is second largest use in Australia.
1 Size of the Board
2 % Women on Board
3
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ESG Disclosure Score
4 100%
Board Average Age 4%
1%
5 % Women in Management 90% 8% 20% CDP
6 Governance Disclosure Score
80% 15% 0%
7 Social Disclosure Score
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4% Industry Specific
8 Environmental Disclosure Score 70%
17%
9 % Independent Directors Ratio
60%
10 UN Global Compact Signatory 32%
*As of 12/02/2011 50% Disclosure
25%
40%
Top Australia - Most Used ESG Data Governance
30% 18%
1 ESG Disclosure Score 17%
Social
2 Size of the Board 20%
3 % Independent Directors
10% 22% Environmental
4 17%
Number of Board Meetings for the Year
5 Fair Remuneration Policy 0%
6 Business Ethics Policy Global Australia
7 Board Meeting Attendance %
8 CEO Duality
9 Number of Independent Directors
10 UN Global Compact Signatory
Source: Bloomberg Professional Service
*As of 12/02/2011
14. °°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°°
ESG DATA TRANSPARENCY
14
Data Transparency to company sourced documents provides consistent presentation of new data
sets, thus creating comfort and acceptance of those unfamiliar with ESG factors.
ESG on Bloomberg
ESG on Bloomberg
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ESG PEER ANALYSIS
Investors can compare a company against its peers on “Efficiency”. For
example, GHG emission per sales rather than absolute emissions.
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18. ESG INVESTMENT STRATEGY 18
Bloomberg analytics enable users to screen companies to determine universe. And
then investors can score companies based on criteria as you like and pick stocks
from the top score.
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SCREENING SAMPLE SCORING SAMPLE
» Negative Screening to screen out » Decrease on GHG intensity per sales:
companies in Tobacco industry Lower is better
» Select market/exchange/index » Current Dividend Yield: Higher is
better
» Take companies with good ESG » % Independent Directors: Higher is
Carbon Analysis Tool
disclosure better
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SCREENING RESULTS
Bloomberg analytics allows users to create ESG Rating. The results show the final
rating as well as ESG performance in criteria for selected universe.
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20. PORTFOLIO ANALYSIS 20
After selecting stocks in analytical tools, investors can construct a portfolio to check if it
performs better than benchmark.
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DJ Sustainability World
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21. PORTFOLIO ANALYSIS 21
Additionally, users can check heat map of any indicators including ESG to see which industry
negatively affects performance on greenhouse gas intensity relative to benchmark.
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DJ Sustainability World
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22. ESG VALUATION MODEL 22
Investors can now assess how material ESG factors are on profitability and
how ESG is related to financial profit and loss to the company’s EBIT.
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Source: Bloomberg Professional Service
23. SUPPLY CHAIN RISK 23
Bloomberg can track suppliers and suppliers’ supplier and check how dependent each other.
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24. BLOOMBERG INDUSTRY 24
Bloomberg Industry provides industry insights on ESG. One example below shows the
correlation between long-term share value and corporate governance performance.
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BHP Billiton is performing better on GHG intensity per sales than other competitors such as Rio Tinto, Anglo American or Xtrata.
In this case, Utilities have the largest GHG intensity relative to benchmark. If you click on Utilities, you can see which company contribute the most for the sector.