Slide 1: FirstRand ESG Credentials: partners in tomorrow's economy
FirstRand ESG Credentials: partners in tomorrow’s economy JSE ESG Investor Briefing Sandton, September 2014, Jonathan Stilwell
Slide 2: Vir Heroicus Sublimus, Barnett Newman
2 Vir Heroicus Sublimus, Barnett Newman
Slide 3: two roads diverged in a yellowwood
3 two roads diverged in a yellowwood And sorry I could not travel both And be one traveler, long I stood And looked down one as far as I could To where it bent in the undergrowth The road not taken, Robert Frost
Slide 4: ESG has emerged from challenges with classical economic growth models
4 ESG has emerged from challenges with classical economic growth models
Slide 5: The new discipline takes a more holistic view of capital
5 The new discipline takes a more holistic view of capital and a less exuberant view on capital accumulation
Slide 6: Financial markets have started internalising some of this uncertainty
6 Financial markets have started internalising some of this uncertainty but are they getting it right? Components of S&P 500 by tangible and intangible value SOURCE: Ocean Tomo (www.oceantomo.com, August 2013)
Slide 7: Investors support ESG investing as a concept
Investors support ESG investing as a concept 2010 SA assets under management (R billion) SOURCE: RI in South Africa. Journal of Economic and Financial Sciences. April 2013.
Slide 8: However focussed SRI is very small
However focussed SRI is very small 2010 SA assets under management (R billion) SOURCE: Author’s adaptation from: SRI in South Africa. Investment Analysts Journal. 75:2012
Slide 9: Where does this leave us? ESG Investing is evolving
9 Where does this leave us? ESG Investing is evolving under severe uncertainty
Slide 10: A meaningful ESG capability means meaningful long-term value proposition
10 A meaningful ESG capability means meaningful long-term value proposition
Slide 11: ESG can be integrated into the capital allocation process
11 ESG can be integrated into the capital allocation process
Slide 12: An assurance capability becomes essential for accuracy
12 An assurance capability becomes essential for accuracy ASSURANCE Group audit committee Group audit committee receives consolidated ESG info to be disclosed in the annual integrated report Franchise audit committee Franchise audit committees receive franchise ESG info to be disclosed in the annual
Slide 13: An oversight capability is essential for meaningful decision making
13 An oversight capability is essential for meaningful decision making and organisational learning OVERSIGHT Group ethics committee Group ethics committee receives reports from franchise ethics committees on ESG issues posing material ethical risk to the Group Franchise ethics committee Franchise et
Slide 14: Better quality information enables ongoing improvement
14 Better quality information enables ongoing improvement
Slide 15: Where does this leave us? ESG Investing is a journey
15 Where does this leave us? ESG Investing is a journey to enable economically efficient long run capital allocation
Slide 16: Meaningful opportunities exist to innovate in our real economy
16 Meaningful opportunities exist to innovate in our real economy. ESG custodianship is an underpin to long run sustainability
Slide 17: Recognise FirstRand's franchises as partners building tomorrow's economy
17 Recognise FirstRand’s franchises as partners building tomorrow's economy
Slide 18: thank you...
18 Siyabonga, siyathokoza, re a leboha, re a leboga, ha Nkhensa, ro livhuha, dankie, enkosi, naa goodee, obrigado, asante sana, zikomo zikomo, kwambiri, thank you... Jonathan Stilwell | HEAD: GOVERNANCE & SUSTAINABILITY | Company Secretariat | FCC 2nd Floor, 4 Merchant Place, Corner Fredman Drive an