Appendix B – Portfolios: developments in 2017

Companies added to the portfolios

Align Technology

Pioneer - Healthy People, United States

The main product of Align Technology is the Invisalign system that is used for straightening teeth with a series of invisible aligners that are custom-made for each patient. In addition, the company offers intra-oral scanners and digital services for making accurate 3D digital images of the patient’s dentition, that can be used for the milling of crowns and implants. Align Technology has a sound policy and programme for ensuring that the minerals used in its products are not sourced from conflict areas. With its products, the company contributes to Healthy People.

Aqua Metals

Pioneer - Clean Planet, United States

Aqua Metals’ core business is lead acid battery recycling. Demand for lead is rising because of growing energy storage needs for hybrid and electric vehicles, buildings and data centers. Lead is the most recycled material in the world. Aqua Metals developed the room temperature AquaRefining process, which is closed-loop and water-based and uses non-toxic, biodegradable organic elements. This replaces the conventional smelting at high temperatures, an energy intensive process that generates toxic liquid, gases and particulate waste. Due to its modular design, the process can be implemented in stand-alone facilities or at existing battery recycling facilities, thus contributing to a circular economic model.

Cree

Pioneer - Climate Protection, United States

Cree’s expertise is light emitting diodes (LEDs) and lighting technology. LED’s are energy-efficient and environmentally friendly. They can deliver the same amount of light using as little as 10 to 15% of the power that conventional lights use, while their lifetime is up to 25 times longer. This enables consumers to save hundreds of dollars over the life of each light. Cree’s products are used for indoor and outdoor lighting, video displays, transportation, electronic signs and signals. Cree also manufactures semiconductors used in power conversion and wireless communications, offering increased efficiency and reduced size for network-server power supplies, solar inverters and industrial motor drives.

Delphi Technologies

Best in class - Automobiles & Components, United States

Delphi Technologies was spun off from Aptiv (formerly Delphi Automotive) in late 2017. The company offers products for electric vehicles and internal combustion engines for both passenger cars and commercial vehicles. In addition, Delphi Technologies provides vehicle repair services through its extensive global aftermarket network. The company’s products contribute to reductions in CO2 and key toxic emissions from combustion engines by more than 40 percent and 60 percent respectively. Delphi Technologies aims to reduce the environmental impact of its operations and has implemented certified environmental and quality management systems at all its manufacturing facilities.

Essilor

Pioneer - Healthy People, France

Essilor manufactures lenses to correct and protect eyesight, as well as optical instruments for opticians. One of the pillars of its sustainable development strategy is Quality Vision for All. As part of this strategy, the company develops inclusive business models that focus on Base of the Pyramid (BoP) consumers. Essilor’s “BoP Innovation Lab” helps to accelerate projects and to strengthen relationships with social enterprises, foundations and development funds. The “2.5 New Vision Generation™” business structure services BoP consumers by training underemployed villagers as vision technicians and providing them with the equipment necessary to start a “micro-business” that carries out eye exams and dispenses eyeglasses to the inhabitants of rural or semi-urban areas in Asia, Latin America and Africa.

Evoqua Water Technologies

Pioneer - Clean Planet, United States

Evoqua Water Technologies helps municipalities and industrial customers to protect and improve their water resources. The company offers wastewater treatment end water management and supplies drinking water and high-purity water for specific applications. It contributes to the sustainability goals of its customers by operating energy-efficient plants or plants that run on 100% renewable energy. Evoqua operates a centralised facility that processes metal-bearing aqueous materials from its customers, with the aim of recovering and reclaiming these metals.

Insulet

Pioneer - Healthy People, United States

Insulet produces an insulin-infusion system for people with insulin-dependent diabetes. The company’s OmniPod System combines an insulin pump in the form of a patch with a handheld device providing continuous information about glucose levels in the patient’s blood. The insulin pump delivers a constant stream of rapid-acting insulin to the body for three days in a row and offers better control than injections, with less risk of highs and lows. It improves the lifestyle of the patient, as the pump is discreet and allows immediate adjustments to the insulin intake. It also provides more flexibility with regards to food intake. In addition, Insulet launched the industry’s first programme for the eco-friendly disposal of insulin pump components. This programme reduces landfill and takes hazardous waste right out of the waste stream.

Itron

Pioneer - Clean Planet, United States

Itron is dedicated to the resourceful use of energy and water. With its products, utilities and cities can accurately measure the electricity, gas and water use of their customers, and analyse energy and water usage patterns. Itron works with utility providers to improve energy and water resourcefulness and reduce their wastage. The Itron Resourcefulness Index serves as a benchmark for country-level management of energy and water, measuring how 16 developed countries perform on effectiveness, efficiency and sustainability. All the company’s major manufacturing facilities are certified according to the internationally recognised environmental standard ISO 14001.

Klépierre

Best in class - Real Estate, France

Klépierre owns shopping centers in cities in 16 European countries that together attract more than 1.2 billion visitors each year. More than 50% of its properties are certified to international sustainability standards. To meet its target of reducing its energy consumption by 25% in 2020, Klépierre increases its renewable energy use by generating it on-site in its shopping centres. The company monitors supplier compliance with environmental and social criteria with on-site teams.

Landis+Gyr

Pioneer - Clean Planet, Switzerland

Landis+Gyr is specialised in metering solutions for electricity, gas, heat, air conditioning, and water. With its energy meters and integrated smart metering solutions, the company enables utilities and its end-users to make better use of scarce resources, thereby reducing operating costs while also protecting the environment. With advanced metering infrastructure and distribution intelligence, utilities can receive information from every touchpoint on the distribution system and see what is happening on the grid. This provides them with the tools to act as needed to ensure the reliable and efficient delivery of energy in an increasingly dynamic environment.

Maxwell Technologies

Pioneer - Climate Protection, United States

The primary products of Maxwell Technologies are ultracapacitors that can charge and discharge very rapidly and that are complementary to primary energy sources. Both conventional and renewable primary energy sources work well as a continuous source of low power, but cannot efficiently handle peak power demands or recapture energy. Ultracapacitors deliver quick bursts of energy during periods of peak power demand, then quickly store energy and capture excess power that is otherwise lost. They are, for instance, used to harvest power from regenerative braking systems and release power to help a hybrid or electric vehicle accelerate. Maxwell’s high-voltage capacitors are used to ensure the safety and reliability of the electric utility infrastructure.

Owens Corning

Pioneer - CSR Pioneer, United States

Owens Corning’s main products are insulation, roofing and composite materials made using glass fibre technology. Insulation and roofing materials help house and building owners to reduce energy use. Glass fiber composite materials enable industrial customers to make their products stronger, lighter and longer lasting. Owens Corning is the largest buyer of recycled glass in the world: its insulation materials have a recycled content of 50% to 70%. The company also buys back roofing shingles from its customers and recycles them into road paving materials, while re-using the glass fiber materials in its own manufacturing process. In 2016 Owens Corning began purchasing 250 MW wind power generated electricity. The company also has a strategy to become zero waste-to-landfill.

Philips

Best in class - Healthcare Equipment & Supplies, Netherlands

Famous in the past for its lighting and consumer electronics, Philips now focuses on health technology. It specialises in healthcare systems, such as diagnostic imaging and image-guided therapies, and in personal health, including tooth brushes and sleep therapy devices. The company invests in the development of green technologies and products and aims to reduce the ecological footprint of its operations and supply chain. With its commitment to a circular economy, Philips works to close the materials loop and make a transition to new business models. In 2016, the company introduced a new internal KPI: circular revenues. This KPI captures revenues from products for which Philips keeps end-of-life responsibility and refurbished and remanufactured products.

Proximus

Best in class - Telecommunication Services, Belgium

Proximus, formerly known as Belgacom, provides telephony, internet, television and network-based ICT services. With its Fit for Growth strategy, it aims to transform from a technology-based player to a company focusing on the full customer experience. Proximus wants to be close to its customers in all areas, from finding information and getting products and services installed to effective customer support. Part of its transformation process is changing the corporate culture, centering on its values of collaboration, agility and accountability. The company promotes internal mobility across business units, divisions and departments and has established a continuous coaching and feedback culture. Proximus partners with Bednet and Take Off to keep children with long-term diseases or recovering from serious injuries connected with their classmates and to keep up their scholastic activity, preventing them from dropping out.

Rockwell Automation

Best in class - Capital Goods, United States

Rockwell Automation offers products for industrial automation, including components, control systems, software and services. These enable its customers to be more productive and more sustainable by means of the Connected Enterprise, where information technology and operations technology converge. In its own business activities, the company puts employee safety and the environment first and it has its management systems certified according to international standards OHSAS 18001 and ISO 14001. Rockwell Automation also aims to improve safety at its customers, by granting the annual Manufacturing Safety Excellence Awards to manufacturers that make safety a core business value. The company wants to reduce its CO2 emissions by 30% by 2022. It promotes diversity and equality among its employees. Furthermore, it sources most of its supplies with businesses located in regions closest to its sites.

SAP

Best In Class - Software & Services, Germany

SAP makes software for businesses, helping them to streamline their processes. The company’s vision is to help the world run better and improve people’s lives, and it believes that digital technologies will enable companies and organisations to tackle some of the world’s most complex problems, as presented in the Sustainable Development Goals. SAP is committed to diversity and inclusion in the workplace. It is the first technology company in the United States to have been awarded Economic Dividends for Gender Equality (EDGE) certification. The company’s openSAP internet learning platform provides more than 90 free-of-charge massive open online courses (MOOCs) to students all over the world, delivering state-of-the-art technology, programming, and digitisation skills.

Sodexo

Best in class - Consumer Services, France

Sodexo provides on-site services, predominantly catering, that help corporate clients to improve the workplace. It aims to improve the quality of life of employees and all people served by means of the Better Tomorrow Plan. Sodexo supports employees in working flexibly to accommodate different lifestyles and achieve a good work-life balance. The company has an inclusion strategy that focuses on developing women-for-leadership positions and integration of people with disabilities, and a Partner Inclusion Programme to stimulate the development of diverse and inclusive businesses. The company promotes health and wellness services for clients, consumers and employees by offering meal options that contribute to the reduction of obesity and malnutrition, and by promoting food choices with reduced sugar, salt and fat content. In order to provide those services, the company collaborates with dieticians and professional chefs worldwide.

Sprouts Farmers Market

CSR Pioneer - Consumer Discretionary, US

The mission of Sprouts Farmers Market is to provide better, healthier food at an affordable price. This specialty food retailer focuses on high-quality natural, organic, fresh, local foods in addition to higher-margin vitamins, supplements and bulk and private-label items. The company offers a large selection of fresh produce, especially fruits and vegetables. Meat is hormone- and additive-free, and produced in accordance with improved animal welfare standards. Sprouts wants to educate its customers on how to eat diverse and healthy food. It also offers a wide range of dairy-free or gluten-free products, vegan products, and products suitable for customers with other food-allergies. In addition, the company is improving the environmental performance of its stores, for example by installing energy-saving light systems and water-saving equipment. Sprouts offers a large range of ‘bulk’ products to save waste and packaging.

Symrise

Best in class - Materials, Germany

Symrise specialises in fragrances, flavors and cosmetic ingredients for personal and household products and for food and beverages. The four pillars of the company’s sustainability agenda are Footprint, Innovation, Sourcing and Care. The company minimises its environmental footprint along the entire value chain through emission reduction, efficient use of raw materials and water management. In product development, Symrise uses green chemistry, advanced technology and intelligent networking to create a sustainability concept for each product group. Sustainable sourcing implies obtaining raw materials from regions surrounding production sites and fostering long-lasting relationships with suppliers, while upholding human rights. Symrise demonstrates its care for employees and local communities by providing a safe and healthy workplace and supporting municipal infrastructures. The company reports about its contribution to reaching the UN Sustainable Development Goals.

Telenor

Best in class - Telecommunication Services, Norway

Telenor connects more than 200 million customers through mobile communication services, but also offers fixed-line and TV broadcast services. The company considers the mobile phone to be a catalyst for change and growth, for instance by enabling access to affordable health services or by promoting financial inclusion, and aims to bring those benefits to a wider audience. Twenty-five youths from around the world gather annually at the Telenor Youth Forum, where they engage in dialogue and communication across boundaries to foster understanding. The company derives nearly half of its revenues from Asian markets, where the risk of human rights violations due to government censorship and surveillance is higher. Telenor demonstrates a strong awareness of these risks and conducted human rights impact assessments prior to commencing operations in Myanmar.

Veeco Instruments

Pioneer - Climate Protection, United States

Veeco Instruments manufactures equipment that is used to make electronic devices that contribute to improving energy efficiency, mobility and connectivity. Its products are used by manufacturers of light emitting diodes (LEDs) and solar panels, as well as hard disk drives and semiconductor devices. Veeco has policies in place to make sure that its operations protect human health and the environment. It makes sure that no conflict minerals are used in its products by sourcing in adherence with the ‘conflict free smelter program’.

Waters

Best In Class - Pharmaceuticals, Biotechnology & Life Sciences, United States

Waters makes analytical instruments that are used by a broad range of industries to determine the composition of products and resources, and the physical properties of materials. Besides the analysis of, for instance, pharmaceutical and food products, its analytical systems are also used for the identification of chemical contaminants in air, water and soil. Waters aims to minimise its impact on the environment. Its Environmental, Health & Safety programme includes internal compliance auditing. In addition, Waters has introduced a life cycle assessment tool to better understand how laboratories may operate more efficiently using the company’s technology.

Wright Medical Group

Pioneer - Healthy People, United States

Wright Medical Group’s orthopaedic products are used in surgical procedures involving the extremities: shoulder, elbow, wrist, hand, foot and ankle. The company aims to improve the quality of life of patients. Its core values are: Think customer, Embrace change, Alignment, eMpowerment and Sustainability. Being a responsible member of the community, Wright Medical Group cares for its facilities and the surrounding environment. Its Health-Safety-Environment Dept (HSE) works with employees to provide a work environment that is free from recognised hazards, using employee suggestions and training programmes. Wright’s Investigator Initiated Research Program is open to all researchers globally who are interested in conducting their own research, to which the company may provide support by providing medical devices, instruments or funding.

Zimmer Biomet

Pioneer - Healthy People, United States

Zimmer Biomet is a specialist in joint replacement technologies. Its orthopaedic products are used to treat patients suffering from disorders or injuries to bones, joints, and supporting muscles and tendons. The company’s Quality Management System is certified according to the internationally-recognised standard ISO 13485, evidencing that it takes the trust of patients and healthcare professionals that rely on the quality of its products seriously. Zimmer Biomet uses life-cycle analyses to minimise the environmental impact of its products during their life. The company has strong standards regarding its social supply chain, and a strong policy on the use of conflict minerals.

Countries and/or regions added to the portfolios

Sovereign bonds of the following countries were added to the portfolio:

  • Italy
  • Spain

Sub-sovereign bonds of the following region was added to the portfolio:

  • Île-de-France

Companies sold based on sustainability performance

  • BBVA: the company was removed due to controversial investments;
  • LafargeHolcim: the company was removed due to violation of human rights;
  • PerkinElmer: the company was removed for not having an animal testing policy;
  • Rentokil Initial: the company was removed for not having an animal testing policy;
  • Stericycle: the company was removed for repeated and major violation of legislation;
  • VF Corp: the company was removed for no longer belonging to the top 50% of its peer group in terms of sustainability performance.

Companies sold based on financial reasons

  • Brambles;
  • British Land;
  • Canadian Solar;
  • EDP Renovaveis;
  • Enphase Energy;
  • H&M;
  • LKQ;
  • Nordex;
  • NxStage Medical;
  • Shimano;
  • Silver Spring Networks;
  • Smith & Nephew;
  • Terumo;
  • Varian Medical Systems.

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