Appendix B – Portfolios: developments in 2016

Companies added to the portfolios

Atlas Copco

Best in class – Capital Goods, Sweden

Atlas Copco is an industrial machinery company based in Sweden. With compressors, generators, construction and mining equipment and a wide range of industrial tools, it serves the manufacturing (including automotive), construction and mining industries. Improved energy efficiency is one of Atlas Copco’s most important drivers in product development, especially in relation to compressed air equipment, where substantial reductions in both costs and carbon dioxide emissions can be achieved. Atlas has a focus on social issues and a strong human rights policy.

Becton, Dickinson and Company

Pioneer – Healthy People, United States

Becton, Dickinson and Company (BD) produces a broad range of medical supplies, laboratory equipment and diagnostic products. The company recognizes that the healthcare system in developed countries is focused reactively on fixing health problems instead of working proactively to prevent them and aims to help shift the dynamic toward wellness. BD commits to the access to health care and works with agencies and non-profit organisations to build and strengthen healthcare infrastructures, to improve clinical practice and to support local communities. The company exceeded its environmental targets with almost 50% hazardous waste reduction and by powering more than 30% of worldwide operations with renewable energy.

Brambles

Best in class – Commercial & Professional Services, Australia

Brambles provides supply-chain logistics services, focusing on the management of reusable pallets, crates and containers. Brambles is committed to zero environmental harm including eliminating deforestation, emissions and product waste to landfills. Its circular business model is centered on reuse and active recovery of materials from damaged wooden pallets and plastic containers for product repair or recycling. The company aims to purchase only certified timber for new wooden pallets, and uses recycled plastics for the production of crates and containers.

Cisco Systems

Best in class – Technology hardware and Equipment, United States

Cisco Systems’ IT products connect networks and people. The company recognises data security and privacy as one of its key CSR issues, together with – among others – digital inclusion and energy efficiency of products. The Cisco Trust and Transparency Center on the company’s website provides customers with information about cybersecurity to help them manage risk. In addition, the company publishes an annual Security Report. Through its Accessibility Initiative, Networking Academy and Get Connected course, Cisco helps people with disabilities, trains students for careers in ICT and introduces people to basic computer and internet skills. The company designs new products for longevity and with end of life in mind.

Deutsche Börse

Best in class – Diversified Financials, Germany

Deutsche Börse provides stock exchange services to institutions and private investors. In its Corporate Citizenship initiatives, the company focuses on education and research. It provides free learning material for teachers and shares know-how with business and economics students. Deutsche Börse promotes the use of ESG data in investment decisions by offering sustainability information free of charge on its website. The Equinix data centre is the motor of the company’s business and since 2012 all servers at the centre have been supplied with hydroelectric power. In 2013, the company’s headquarters received the “Green Building Award”.

Evonik Industries

Best in class – Materials, Germany

Evonik provides chemical elements that are used in a broad range of products, including animal nutrition, healthcare and consumer products. Evonik’s commitment to sustainability is reflected in its CR Steering Committee which is responsible for developing and implementing the corporate responsibility strategy as well as in the coupling of executive compensation with ESG performance targets. Health and safety is a top priority at Evonik and the company implemented strong programmes including extensive guiding principles on occupational and transportation safety for its employees. The company aims to reduce the environmental impacts of its manufacturing processes and sets targets to reduce its greenhouse gas emissions and water consumption by 12% until 2020 (based on 2012 levels).

Ford Motor

Best in class – Automobiles & Components, United States

Ford manufactures vehicles, auto parts, and accessories worldwide. In its multi-decade strategy Blueprint for Mobility, the company outlines its vision of the car as part of a broader transportation network based on vehicles that can communicate with one another to avert accidents and to warn of traffic and infrastructure delays. In 2014, Ford started 25 mobility experiments around the globe to test new mobility concepts and evaluate their impact on the environment and society. Furthermore, Ford works on further implementing sustainability into its operations. For example, the company has a network of more than 11,000 suppliers and has comprehensive programmes for managing social and environmental supply chain risks including measures such as systematically considering suppliers’ environmental performance during procurement or integrating compliance with environmental standards into legally binding agreements with suppliers.

KPN

Best in class – Telecommunication Services, the Netherlands

Royal KPN offers wireline and wireless telephony, Internet and TV to consumers and end-to-end telecom and ICT services to business customers. KPN operates climate-neutral since 2015 and also helps its customers to use less energy with its energy efficient products and services. Its new cradle-to-cradle data center in Eindhoven received the Dutch ICT Environment Award. The company recognises the importance of privacy and security in online communication and based its security model on the security lifecycle approach that includes prevent, detect, respond and verify. Through its Foundation, KPN enables vulnerable groups in society to maintain social contact. For instance, keeping chronically ill children connected to their classrooms and friends.

Merck

Best in class – Pharmaceuticals, Biotechnology & Life Sciences, Germany

Merck manufactures medicines, lab materials and specialty chemicals. In realising its corporate responsibility, the company focuses on the areas where it has the greatest impact: health, environment and culture. Merck works with partners to improve access to health care in low- and middle-income countries. The company improves the sustainability footprint of its products through its Design for Sustainability programme, but also aims to help customers achieve their own sustainability goals. Merck supports cultural initiatives and educational programmes that inspire people and broaden their horizons. Merck’s commitment to sustainability is reflected in its group-wide corporate responsibility committee and its strong business ethics standards.

Nordex

Pioneer – Climate Protection, Germany

Nordex produces onshore wind power systems and provides project services for the technical planning of wind park systems. One of the core topics within its responsibility programme is sustainable product development: the company strives to optimise material recyclability and to use sustainable materials, while working to reduce noise emissions from systems in operation. In view of the constant waste increase in decommissioning old wind turbines, Nordex has introduced recycling measures for large components, disposing of used rotor blades thermally and through material recycling. The company implements targeted nature-protection systems to protect bats and birds in ecologically sensitive areas, for instance by shutting down systems at specific times. Furthermore, Nordex has set a target of powering all its locations by 2018 with 100% renewable energy.

Oxford Immunotec

Pioneer – Healthy People, United Kingdom

Oxford Immunotec develops diagnostic tests for the diagnosis and monitoring of diseases related to immunology, like chronic infections and inflammatory disease. The tests are based on the T-SPOT technology that allows measurement of specific immune cells, known as T cells. The company’s T-SPOT TB test is used to identify latent tuberculosis infection and can replace the 100-year old Tuberculin Skin Test. In 2016, Oxford Immunotec became one of the 1,000 Companies to Inspire Britain.

Shimano

Pioneer – Clean Planet, Japan

Shimano produces mainly bicycle components, but also fishing tackle and lifestyle and rowing gear. The company promotes the importance of health among its employees, by means of education in courses and events, and encouraging commuting by bicycle. With the Shimano Cycling World in Singapore, a hands-on exhibition, the company wants to disseminate cycling culture in Southeast Asia and help people achieve a new lifestyle. In the re-modeling of its main factory, Shimano has integrated energy-saving measures. The company works with its suppliers to develop products with reduced environmental impact in line with the Shimano Green Plan guidelines.

Silver Spring Networks

Pioneer – Climate Protection, United States

Silver Spring Networks offers ICT-based ‘smart grid’ solutions including electricity metering and demand control to increase efficiency of power use. This technology can help consumers to use power at times that general power demand is low, or that supply of renewable power is high. The company aims to increase the efficiency of the grid and empower consumers to track and reduce their use of energy, gas and water. For example, the growing number of electric vehicles can strain the power grid if consumers plug in their electric vehicles at the same time and Silver Spring Networks provides tools for incentivising customers to charge their vehicles during non-peak times.

SMA Solar Technology

Pioneer – Climate Protection, Germany

SMA Solar Technology produces inverters and monitoring systems for solar power systems. SMA integrates photovoltaics in its company buildings, but solar trees are also found on the company grounds. Some of these serve as charging stations for electric vehicles. The company’s “Solar Factory 1” is CO2-neutral on account of reduction in energy demand and the use of renewable energy. SMA aids people around the world that still live without electricity with gaining access to a sustainable and inexpensive power supply. The company stimulates its employee to use environmentally friendly ways of commuting to work. It supports its employees in finding a healthy work-life balance. SMA also offers its employees flexible working time models and gives them the freedom to structure their work individually.

Teladoc

Pioneer – Healthy People, United States

Teladoc is a telehealth platform that connects patients with physicians 24 hours a day, 7 days a week, via mobile devices, the Internet, video and telephone. Patients gain access to the platform through their employers, health plans or health systems. The platform improves the accessibility of healthcare by being available whenever and wherever the patient chooses. It also reduces costs of healthcare, as an estimated 1/3 of ambulatory care visits can be treated through telehealth, and helps solve physician shortages in the US through improved efficiency.

Terna

Best in class – Utilities, Italy

Terna owns and operates the electricity grid in Italy, balancing energy demand and supply. It is responsible for the efficiency and maintenance of the electricity infrastructure, but also for the development and construction of the grid. In dialogue with the WWF, Legambiente and Greenpeace the company aims to improve the sustainability of the grid. Terna replaces traditional pylons of power lines by pylons that take up 10 times less space, and places nesting boxes on them. Furthermore, the company places, on stretches of its high voltage lines where birds frequently cross, devices to make the lines more easily perceivable to birds in flight.

Valeo

Best in class – Automobiles & Components, France

Valeo produces components and integrated systems for cars and trucks. It helps automobile manufacturers build more energy efficient vehicles with its products like fuel efficient power trains, fuel-saving transmissions, vehicle hybridisation technology, new solutions for recovering energy from braking, and technology for full electric vehicles. The company uses environmental impact assessments in the development of its products and has a strong focus on lowering CO2 emissions, recyclability of materials and systems, and safety. In addition, Valeo collects used parts and remanufactures them for sale on the aftermarket. These efforts are based on a strong environmental management system that is externally certified. The company’s strong employee policies also apply to its suppliers.

Verizon Communications

Best in class – Telecommunication Services, United States

Verizon connects people with mobile, fixed telephone and television services. In 2014, the company published its first Transparency Report, disclosing how it balances customer privacy with law enforcement from governments across its operating countries, and called on governments to make public the number of demands they make for customer data from telecommunications and Internet companies. The company set up the Verizon Innovative Learning Schools (VILS) programme that trains teachers on using smartphones and tablets in the classroom, using kids’ love of this technology to stimulate learning.

Countries and/or regions added to the portfolios

None

Companies sold based on sustainability performance

  • Chipotle Mexican Grill: the company was removed due to labour right concerns and violation of legislation;
  • DnB: the company is removed due to environmental concerns;
  • Sound Global: the company was removed due to corporate governance concerns.

Companies sold based on financial reasons

  • 3iGroup;
  • Baxalta;
  • CT Environmental Group;
  • eBay;
  • EMC;
  • Express Scripts;
  • FuelCell Energy;
  • Meyer Burger Technology;
  • Opower;
  • PostNL;
  • PowerSecure International;
  • Seagate Technology;
  • Solarcity;
  • SunPower;
  • SunEdison;
  • SunOpta;
  • Telenor;
  • Trina Solar;
  • WhiteWave Foods.

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