Sasja Beslik Head of SRI Banco/ABN AMRO Asset Management Investment x Responsibility = Profit 2 INSTEAD OF JUST THE NEXT QUARTER, HOW ABOUT THE NEXT QUARTER OF A CENTURY…

- Asset Manager specialist - Unique SRI concept - Charity/NGO supporting and SRI-funds customers - AUM: SEK 14 billion. THE LEADING SRI MANAGER IN SWEDEN

Investment policy setting… Human Rights:  UN Universal Declaration of Human Rights  UN Convention on the rights of the child Labour issues:  ILO Core Conventions  OECD guidelines for multinational corporations Corruption  UN Corruption Convention  OECD guidelines for multinational corporationsEnvironment:  UN Convention on biological diversity: Cartagena protocol on biosafety  UN Montreal Protocol on substances that deplete the ozone layer  UN Framework Convention on Climate Change: Kyoto protocol Seeking for opportunities…by managing risks

Coctail Molotov…trends Corporate Governance in international focus Increasing European legislation Increasing demand from institutional investors SRI is becoming more mainstream From passive exclusions to active engagement PRINCIPLES FOR RESPONSIBLE INVESTMENTS (PRI)PRINCIPLES FOR RESPONSIBLE INVESTMENTS (PRI)

SRI AuM and SRI Revenue are expected to grow rapidly in Europe €173 BN €93 BN European SRI AUM (€BN) CAGR 1 : 17% European SRI revenue (€MM) 42% retail 58% institutional 20% retail 80% institutional €420 MM €240 MM CAGR: 15% 1 CAGR = compound annual growth rate 41% 59% 20% 80% In the US from 1995 to 2003, SRI AuM grew 40% faster than all professionally managed assets in the US.

Estimates suggest that retail SRI assets will double by 2008 Est. 04-’08 CAGR SRI AUM (€BN) Austria Denmark Switzerland Germany Italy Netherlands France Sweden UK CAGR 16% €18 BN €35 BN 16% 24% 8% 22% 21% 24% 11% 13% 8% 20% Brazil Norway7% Spain Belgium 10% 9% Source: Feri FMI market data as of September 2004 Mercer Oliver Wyman analysis

Institutional AUM invested in SRI are expected to approach €140 BN by 2008 SRI AUM (€BN) Germany UK Sweden Belgium Brazil Finland 15% 12% 11% 13% 6% €75BN €139BN CAGR: 13% Netherlands Denmark Norway 17% 19% 17% Switzerland Spain 20% 22% France 27% Italy Austria 29% 20% 38% Source: Feri FMI market data as of September 2004, Mercer Oliver Wyman analysis Est. ’03-’08 CAGR

Piano in the Dark… Fact that social & environmental responsibilities pay good dividend in the short and long-term. Assessment of future risks and long-term profitability Customer demand Media NGO’s

Unforgettable…integration SRI Movement of SRI specialists e.g. Banco Movement of mainstream into SRI Responsible investments

Nothin’ Else… concept  Social and environmental risk & opportunities perspective…”upside”  Pro-active approach  Engagement  Knowledge transfer  Active ownership HOW and HOW GOOD?

 Social and environmental risks  Internal policies and monitoring procedure  CSR awareness and top management’s engagement  Inclination to change Talk is……cheap

SRI investment process… SRI investment process… Fundamental analysis Follow up and Control (compliance) Ongoing monitoring Drafting model portfolio Screening/Applying the SRI criteria Individual evaluation of companies Selection of replacement stocks Active engagement Classification of companies

Better by the Pound… Type of business operations Geographies Risk exposure & link to product and service opportunities Risk of biased information Complex evaluations Media’s attitude

What is reasonable… Integration of social,environmental and ethical issues in daily business operations Risk/problem management & “upside” story Humble – open – sensitive outlook Top down process External reporting

Sustainability performance Financial performance Ideal Spot Before…

Sustainability performance Financial performance Ideal Spot Now…