Sustainable Asset Management (SAM)
Encyclopedia
Sustainable Asset Management (SAM) is an international investment company with a specific focus on sustainability
investments . The company is based in Zurich
, Switzerland
and considers economic, environmental and social criteria in its investment strategies. In addition to asset management, the company has an indexes
and private equity
portion of the business. SAM has a series of products based on themes such as water, energy, climate, agriculture, and healthy living. In 2006 SAM introduced a division called sustainability services that provides sustainability benchmarking reports to companies. In 2001, SAM became the first carbon neutral
company in Switzerland.
, which is a subsidiary of Rabobank
. Rabobank is a AAA rated bank by Standard & Poor's
.
1999 SAM and Dow Jones launch the Dow Jones Sustainability Indexes
2001 First global sustainable water fund launched (SAM Sustainable Water
Fund)
2001 SAM becomes first Carbon Neutral company in Switzerland
2003 SAM Smart Energy Fund launched
2006 Acquired by Robeco
2009 Integration of Robeco SAM Clean Tech Private Equity at SAM’s headquarters
2010 SAM named SRI/Sustainable Investment Manager of the Year by Financial News
2010 Robeco Switzerland merges with SAM
2011 SAM manages SAM Sustainable Agribusiness Equities Fund and SAM Sustainable European Equities Fund
The main areas of business are: asset management, indexes, private equity and sustainability services (company benchmarking reports) .
In 1999, SAM and Dow Jones Indexes
came together to produce the world’s first sustainability indexes known as the Dow Jones Sustainability Indexes (DJSI). The DJSI include broad, blue chip, single theme and multi-theme indexes. Many major global companies, such as Akzo Nobel
and TNT N.V.
, have linked top-management remuneration to the Dow Jones Sustainability World Index.
(SRI). Sustainable investing is based on the assumption that financial markets represent a powerful mechanism to promote sustainable business practices. Proponents of sustainable investing say that integrating sustainability considerations into investment decisions can lead to superior risk-adjusted returns over the long term.
SAM has theme strategies based on major sustainability trends such as water, energy, materials, and climate. It also has core regional products such as a sustainable global active fund and a sustainable europe active fund . The SAM Sustainable Water Fund received a lot of recognition as it was one of the first of its kind to be launched in 2001 and it recently celebrated its 10th Anniversary.
, which is a member of Rabobank
. The concept of clean tech investing is based on a world that is characterized by rapid population growth, finite natural resources, high prices and material shortages; all of which call for more efficient production processes. Investments include products, services, and processes across industry verticals that are designed to improve the productive and responsible use of natural resources, greatly reduce or eliminate negative environmental impacts and provide superior performance at lower costs.
SAM Clean Tech Private Equity invests in sustainable private equity
through co-investments in unlisted companies or through private equity fund of funds
. Since 2004, they have been integrating the ESG
framework into investment process. Investment & Pensions Europe (IPE) named SAM Private Equity as the most Responsible European Private Equity investor.
The table below demonstrates some examples of clean tech sectors and technologies:
examples.
The Research team develops the methodology for the annual corporate sustainability assessment that is used to determine the Dow Jones Sustainability Index
. SAM research has been analyzing companies along sustainability metrics since 1995 and has developed one of the largest global corporate sustainability databases. The research department often collaborates with academia to share the valuable data from this proprietary database. Ongoing collaborations include projects with ETH
and IESE Business School.
factors), which serve as the primary basis for determining a company's level of sustainability and subsequent global impact. The questionnaire has a focus on long-term sustainability topics that are relevant to each industry including human capital, brands and innovation. Some of the sectors they look at include: airlines, communication technology, beverages, auto parts & tires, waste & disposal services, and electricity
. After the assessment, each participating company receives a peer benchmarking analysis.
The family of Dow Jones Sustainability Index
are based on the results of the corporate sustainability assessment . In a 2010 report, Rate the Raters identified the methodology used for the construction of the Dow Jones Sustainability Index
as the most credible sustainability rating approach out of over 100 rating organizations that were surveyed by SustainAbility.
Much of the data derived from the corporate sustainability assessment is used in SAM's financial analysis. The data is integrated into the valuation models. Full integration of sustainability into valuation analysis is a differing approach to using data as a sustainability overlay. Advocates of the integration approach state that it is a more accurate reflection of the companies value as it takes into account the various ways in which sustainability factors have an impact on different business models and cost structures.
Also from the results of the corporate sustainability assessment, SAM produces a "Sustainability Yearbook" in which they announce the companies that have been ranked as sustainability "sector leaders" and/or "sector movers". They also give a small number of companies a classification of gold, silver or bronze to recognize their added commitment to sustainability issues . Sector leaders in the past have included: Adidas
, BMW
, Nokia
, Panasonic
, PepsiCo
, Pirelli
, and Rolls-Royce Group plc. Sector movers in the past have included: Air France
, Fiat
, Hormel
, IBM
, Mitsubishi
, and Starbucks
.
It was founded under the belief that individuals who place a great importance and effort to promote sustainability in the workplace should be publicly recognized .
Previous award winners include:
Sustainability
Sustainability is the capacity to endure. For humans, sustainability is the long-term maintenance of well being, which has environmental, economic, and social dimensions, and encompasses the concept of union, an interdependent relationship and mutual responsible position with all living and non...
investments . The company is based in Zurich
Zürich
Zurich is the largest city in Switzerland and the capital of the canton of Zurich. It is located in central Switzerland at the northwestern tip of Lake Zurich...
, Switzerland
Switzerland
Switzerland name of one of the Swiss cantons. ; ; ; or ), in its full name the Swiss Confederation , is a federal republic consisting of 26 cantons, with Bern as the seat of the federal authorities. The country is situated in Western Europe,Or Central Europe depending on the definition....
and considers economic, environmental and social criteria in its investment strategies. In addition to asset management, the company has an indexes
Stock market index
A stock market index is a method of measuring a section of the stock market. Many indices are cited by news or financial services firms and are used as benchmarks, to measure the performance of portfolios such as mutual funds....
and private equity
Private equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
portion of the business. SAM has a series of products based on themes such as water, energy, climate, agriculture, and healthy living. In 2006 SAM introduced a division called sustainability services that provides sustainability benchmarking reports to companies. In 2001, SAM became the first carbon neutral
Carbon neutral
Carbon neutrality, or having a net zero carbon footprint, refers to achieving net zero carbon emissions by balancing a measured amount of carbon released with an equivalent amount sequestered or offset, or buying enough carbon credits to make up the difference...
company in Switzerland.
History
The company was founded by Reto Ringger in 1995 as the world’s first investment company focused solely on sustainability themes . The headquarters are in Zurich, Switzerland and SAM has approximately 100 employees . Its parent company is the Dutch based RobecoRobeco
Robeco is a Dutch asset management firm founded in 1929 as the Rotterdamsch Beleggings Consortium . By year end 2009, the company had over € 130 billion of assets under management. It was acquired in 2001 by the Rabobank Groep.Robeco offers assets management services to both institutional and...
, which is a subsidiary of Rabobank
Rabobank
Rabobank is a financial services provider with offices worldwide. Their main location is in the Netherlands. They are a global leader in Food and Agri financing and in sustainability-oriented banking...
. Rabobank is a AAA rated bank by Standard & Poor's
Standard & Poor's
Standard & Poor's is a United States-based financial services company. It is a division of The McGraw-Hill Companies that publishes financial research and analysis on stocks and bonds. It is well known for its stock-market indices, the US-based S&P 500, the Australian S&P/ASX 200, the Canadian...
.
Timeline
1995 Reto Ringger founds SAM1999 SAM and Dow Jones launch the Dow Jones Sustainability Indexes
2001 First global sustainable water fund launched (SAM Sustainable Water
Fund)
2001 SAM becomes first Carbon Neutral company in Switzerland
2003 SAM Smart Energy Fund launched
2006 Acquired by Robeco
2009 Integration of Robeco SAM Clean Tech Private Equity at SAM’s headquarters
2010 SAM named SRI/Sustainable Investment Manager of the Year by Financial News
Financial News
The Financial News, is a financial newspaper and news website published in London. It is a weekly investment banking, fund management and securities industries newspaper, published by eFinancial News Limited. Financial News was founded in 1996....
2010 Robeco Switzerland merges with SAM
2011 SAM manages SAM Sustainable Agribusiness Equities Fund and SAM Sustainable European Equities Fund
Operations
The company’s total assets amount to about USD 16.4 billion.The main areas of business are: asset management, indexes, private equity and sustainability services (company benchmarking reports) .
In 1999, SAM and Dow Jones Indexes
Dow Jones Indexes
Dow Jones Indexes was formed in 1997 as an entity within Dow Jones & Co. It is now owned by the CME Group. It serves as the marketing name of CME Group Indexes, LLC. It produces, maintains, licenses and markets indexes as benchmarks and as the basis of investible products such as exchange traded...
came together to produce the world’s first sustainability indexes known as the Dow Jones Sustainability Indexes (DJSI). The DJSI include broad, blue chip, single theme and multi-theme indexes. Many major global companies, such as Akzo Nobel
Akzo Nobel
Akzo Nobel N.V., trading as AkzoNobel, is a Dutch multinational, active in the fields of decorative paints, performance coatings and specialty chemicals. Headquartered in Amsterdam, the company has activities in more than 80 countries, and employs approximately 55,000 people. Sales in 2010 were EUR...
and TNT N.V.
TNT N.V.
TNT N.V., more commonly known as TNT, is an international express and mail delivery services company with headquarters in Hoofddorp, Netherlands. In the Netherlands, TNT operates the national postal service under the name TNT Post. The group also offers postal services in eight other European...
, have linked top-management remuneration to the Dow Jones Sustainability World Index.
Asset Management
The asset management business is based purely on investing in sustainable companies. Although SAM refers to it as Sustainability Investing, this is often referred to in the mainstream as Socially Responsible InvestingSocially responsible investing
Socially responsible investing , also known as sustainable, socially conscious, or ethical investing, describes an investment strategy which seeks to consider both financial return and social good....
(SRI). Sustainable investing is based on the assumption that financial markets represent a powerful mechanism to promote sustainable business practices. Proponents of sustainable investing say that integrating sustainability considerations into investment decisions can lead to superior risk-adjusted returns over the long term.
SAM has theme strategies based on major sustainability trends such as water, energy, materials, and climate. It also has core regional products such as a sustainable global active fund and a sustainable europe active fund . The SAM Sustainable Water Fund received a lot of recognition as it was one of the first of its kind to be launched in 2001 and it recently celebrated its 10th Anniversary.
Clean Tech Private Equity
SAM houses the clean tech private equity team of its parent company RobecoRobeco
Robeco is a Dutch asset management firm founded in 1929 as the Rotterdamsch Beleggings Consortium . By year end 2009, the company had over € 130 billion of assets under management. It was acquired in 2001 by the Rabobank Groep.Robeco offers assets management services to both institutional and...
, which is a member of Rabobank
Rabobank
Rabobank is a financial services provider with offices worldwide. Their main location is in the Netherlands. They are a global leader in Food and Agri financing and in sustainability-oriented banking...
. The concept of clean tech investing is based on a world that is characterized by rapid population growth, finite natural resources, high prices and material shortages; all of which call for more efficient production processes. Investments include products, services, and processes across industry verticals that are designed to improve the productive and responsible use of natural resources, greatly reduce or eliminate negative environmental impacts and provide superior performance at lower costs.
SAM Clean Tech Private Equity invests in sustainable private equity
Private equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
through co-investments in unlisted companies or through private equity fund of funds
Fund of funds
A "fund of funds" is an investment strategy of holding a portfolio of other investment funds rather than investing directly in shares, bonds or other securities. This type of investing is often referred to as multi-manager investment...
. Since 2004, they have been integrating the ESG
ESG
ESG may refer to:* Engineering Seismology Group, a microseismic monitoring and data analysis company from Canada.* Environmental Social and Corporate Governance, the commonly accepted factors involved in Responsible Investment assessments...
framework into investment process. Investment & Pensions Europe (IPE) named SAM Private Equity as the most Responsible European Private Equity investor.
The table below demonstrates some examples of clean tech sectors and technologies:
| Sectors | Clean Technology Examples |
|---|---|
| Energy Generation | Wind, Solar, Hydro, Marine, Biofuels Biofuel Biofuel is a type of fuel whose energy is derived from biological carbon fixation. Biofuels include fuels derived from biomass conversion, as well as solid biomass, liquid fuels and various biogases... , Geothermal , Clean Coal Technologies, Coal Bed Methane |
| Energy Storage | Fuel Cells, Advanced Batteries, hybrid systems Hybrid system A hybrid system is a dynamic system that exhibits both continuous and discrete dynamic behavior – a system that can both flow and jump... |
| Energy Infrastructure | Management, smart grids, Transmission |
| Energy Efficiency | Lighting, Buildings, Glass, ESCOs, Combined Heat & Power |
| Transportation | Structures, Fuels, Hydrogen Highways, Biofuel Distribution, Electric Vehicles Electric vehicle An electric vehicle , also referred to as an electric drive vehicle, uses one or more electric motors or traction motors for propulsion... , Vehicle Sharing |
| Water & Wastewater | Water Treatment, Water Conservation, Wastewater Treatment, Desalination |
| Air & Environment | Cleanup/Safety, Emissions Control, Monitoring/Compliance, Carbon Capture, SOX/NOX Removal |
| Materials | Nano Nanotechnology Nanotechnology is the study of manipulating matter on an atomic and molecular scale. Generally, nanotechnology deals with developing materials, devices, or other structures possessing at least one dimension sized from 1 to 100 nanometres... , Bio, Chemical |
| Manufacturing/Industrial | Advanced Packaging, Monitoring & Control, Smart Production |
| Agriculture | Natural Pesticides, Land Management, Aquaculture |
| Recycling & Waste | Recycling Recycling Recycling is processing used materials into new products to prevent waste of potentially useful materials, reduce the consumption of fresh raw materials, reduce energy usage, reduce air pollution and water pollution by reducing the need for "conventional" waste disposal, and lower greenhouse... , Waste Treatment |
Sustainability Services
In 2006, SAM founded a sustainability services division. Sustainability services provides company benchmarking reports that provide companies with details about their individual sustainability performance as well as a peer group comparison. Companies can see their strengths and weaknesses mapped against sustainability criterion and compared to best practiceBest practice
A best practice is a method or technique that has consistently shown results superior to those achieved with other means, and that is used as a benchmark...
examples.
SAM Research
SAM’s asset management, index and sustainability services are all rooted in its proprietary in-house research division. The financial analysts generate stock recommendations based on a combination of financial sustainability criteria.The Research team develops the methodology for the annual corporate sustainability assessment that is used to determine the Dow Jones Sustainability Index
Dow Jones Sustainability Index
Launched in September 1999, the Dow Jones Sustainability Indexes are a family of indexes evaluating the performance of the world’s leaders in sustainability. They are the longest-running global sustainability benchmarks worldwide and have become the key reference point in Sustainability Investing...
. SAM research has been analyzing companies along sustainability metrics since 1995 and has developed one of the largest global corporate sustainability databases. The research department often collaborates with academia to share the valuable data from this proprietary database. Ongoing collaborations include projects with ETH
ETH Zurich
The Swiss Federal Institute of Technology Zurich or ETH Zürich is an engineering, science, technology, mathematics and management university in the City of Zurich, Switzerland....
and IESE Business School.
Corporate Sustainability Assessment
The corporate sustainability assessment is an industry-specific questionnaire that is sent out to the 2,500 largest corporations. Accordingly, SAM annually assesses around 2,000 of the world's largest companies over 58 market sectors and determines their respective sustainability rating. The assessment examines companies based on environmental social and corporate governance factors (ESGESG
ESG may refer to:* Engineering Seismology Group, a microseismic monitoring and data analysis company from Canada.* Environmental Social and Corporate Governance, the commonly accepted factors involved in Responsible Investment assessments...
factors), which serve as the primary basis for determining a company's level of sustainability and subsequent global impact. The questionnaire has a focus on long-term sustainability topics that are relevant to each industry including human capital, brands and innovation. Some of the sectors they look at include: airlines, communication technology, beverages, auto parts & tires, waste & disposal services, and electricity
Electricity
Electricity is a general term encompassing a variety of phenomena resulting from the presence and flow of electric charge. These include many easily recognizable phenomena, such as lightning, static electricity, and the flow of electrical current in an electrical wire...
. After the assessment, each participating company receives a peer benchmarking analysis.
The family of Dow Jones Sustainability Index
Dow Jones Sustainability Index
Launched in September 1999, the Dow Jones Sustainability Indexes are a family of indexes evaluating the performance of the world’s leaders in sustainability. They are the longest-running global sustainability benchmarks worldwide and have become the key reference point in Sustainability Investing...
are based on the results of the corporate sustainability assessment . In a 2010 report, Rate the Raters identified the methodology used for the construction of the Dow Jones Sustainability Index
Dow Jones Sustainability Index
Launched in September 1999, the Dow Jones Sustainability Indexes are a family of indexes evaluating the performance of the world’s leaders in sustainability. They are the longest-running global sustainability benchmarks worldwide and have become the key reference point in Sustainability Investing...
as the most credible sustainability rating approach out of over 100 rating organizations that were surveyed by SustainAbility.
Much of the data derived from the corporate sustainability assessment is used in SAM's financial analysis. The data is integrated into the valuation models. Full integration of sustainability into valuation analysis is a differing approach to using data as a sustainability overlay. Advocates of the integration approach state that it is a more accurate reflection of the companies value as it takes into account the various ways in which sustainability factors have an impact on different business models and cost structures.
Also from the results of the corporate sustainability assessment, SAM produces a "Sustainability Yearbook" in which they announce the companies that have been ranked as sustainability "sector leaders" and/or "sector movers". They also give a small number of companies a classification of gold, silver or bronze to recognize their added commitment to sustainability issues . Sector leaders in the past have included: Adidas
Adidas
Adidas AG is a German sports apparel manufacturer and parent company of the Adidas Group, which consists of the Reebok sportswear company, TaylorMade-Adidas golf company , and Rockport...
, BMW
BMW
Bayerische Motoren Werke AG is a German automobile, motorcycle and engine manufacturing company founded in 1916. It also owns and produces the Mini marque, and is the parent company of Rolls-Royce Motor Cars. BMW produces motorcycles under BMW Motorrad and Husqvarna brands...
, Nokia
Nokia
Nokia Corporation is a Finnish multinational communications corporation that is headquartered in Keilaniemi, Espoo, a city neighbouring Finland's capital Helsinki...
, Panasonic
Panasonic
Panasonic is an international brand name for Japanese electric products manufacturer Panasonic Corporation, which was formerly known as Matsushita Electric Industrial Co., Ltd...
, PepsiCo
PepsiCo
PepsiCo Inc. is an American multinational corporation headquartered in Purchase, New York, United States, with interests in the manufacturing, marketing and distribution of grain-based snack foods, beverages, and other products. PepsiCo was formed in 1965 with the merger of the Pepsi-Cola Company...
, Pirelli
Pirelli
Pirelli & C. SpA is a diverse multinational company based in Milan, Italy. The company, the world’s fifth largest tyre manufacturer, is present in over 160 countries, has 20 manufacturing sites around the world and a network of around 10,000 distributors and retailers.Founded in Milan in 1872,...
, and Rolls-Royce Group plc. Sector movers in the past have included: Air France
Air France
Air France , stylised as AIRFRANCE, is the French flag carrier headquartered in Tremblay-en-France, , and is one of the world's largest airlines. It is a subsidiary of the Air France-KLM Group and a founding member of the SkyTeam global airline alliance...
, Fiat
Fiat
FIAT, an acronym for Fabbrica Italiana Automobili Torino , is an Italian automobile manufacturer, engine manufacturer, financial, and industrial group based in Turin in the Italian region of Piedmont. Fiat was founded in 1899 by a group of investors including Giovanni Agnelli...
, Hormel
Hormel
Hormel Foods Corporation is a food company based in southeastern Minnesota , perhaps best known as the producer of Spam luncheon meat. The company was founded as George A. Hormel & Company in Austin, Minnesota, U.S., by George A. Hormel in 1891. The company changed its name to Hormel Foods...
, IBM
IBM
International Business Machines Corporation or IBM is an American multinational technology and consulting corporation headquartered in Armonk, New York, United States. IBM manufactures and sells computer hardware and software, and it offers infrastructure, hosting and consulting services in areas...
, Mitsubishi
Mitsubishi
The Mitsubishi Group , Mitsubishi Group of Companies, or Mitsubishi Companies is a Japanese multinational conglomerate company that consists of a range of autonomous businesses which share the Mitsubishi brand, trademark and legacy...
, and Starbucks
Starbucks
Starbucks Corporation is an international coffee and coffeehouse chain based in Seattle, Washington. Starbucks is the largest coffeehouse company in the world, with 17,009 stores in 55 countries, including over 11,000 in the United States, over 1,000 in Canada, over 700 in the United Kingdom, and...
.
Company Awards
- Best Climate Change Fund, 2010: The SAM Sustainable Climate Fund was awarded the "Best Climate Change Fund" by Investment WeekInvestment WeekInvestment Week is an investments magazine that covers news, fund performance and sector analysis for investment professionals....
- SRI/Sustainable Investment Manager of the Year Award, 2010: awarded by Financial NewsFinancial NewsThe Financial News, is a financial newspaper and news website published in London. It is a weekly investment banking, fund management and securities industries newspaper, published by eFinancial News Limited. Financial News was founded in 1996....
in October 2010.
- TBLI Best Asset Manager Investing in ESG, 2008, 2009: awarded by IPE TBLI Group ESG Leaders Awards
Memberships
SAM is a member of the following organizations:- PRI, Principles for Responsible Investment
- Eurosif, European Social Investment Forum
- Ceres Ceres (organization)Ceres is a non-profit, American network of investors, environmental organizations and other public interest groups working with companies and investors to address sustainability challenges, such as global climate change....
, Investors and Environmentalists for Sustainable Prosperity - ASrIA, The Association for Sustainable & Responsible Investment in Asia
Sustainability Leadership Awards
In 2001, SAM and Sustainable Performance Group (SPG) founded the sustainability leadership award. The award ran from 2001–2010 and was presented annually to a chosen sustainability leader and pioneer .It was founded under the belief that individuals who place a great importance and effort to promote sustainability in the workplace should be publicly recognized .
Previous award winners include:
- 2001 Ray Anderson (Founder and CEO Interface Inc.)
- 2002 Dr. Michael Otto (Chairman of the Board of Directors, Otto) and José Maria Figueres Olsen (former President of Costa Rica, founder of Costa Rica Foundation for Sustainable Development)
- 2003 Tessa Tennant (Executive Chair, AsrIA)
- 2004 Antony Burgmans (Chairman Unilever) and Robin Cornelius (Founder and CEO of Switcher SA)
- 2005 Lars Rebien Sørensen (Chairman and CEO of Novo Nordisk) and Bob Welsh (CEO, VicSuper)
- 2006 Travis Engen (Alcan) and Jeremy Leggett (solarcentury)
- 2007 Yogesh Chander Deveshwar (Chairman of ITC Ltd.) and David Johnston (Founder and President of What's Working Inc.)
- 2008 Yvon Chouinard (Patagonia Inc.) and L. Hunter Lovins (Natural Capitalism Inc. / Natural Capitalism Solutions)
- 2009 Peter Bakker (CEO of TNT) and Dr. Ashok Gadgil (professor for environmental technology at the University of California, Berkeley)
See also
- RI TV: SAM on Sustainability Investing
- Dow Jones Sustainability IndexDow Jones Sustainability IndexLaunched in September 1999, the Dow Jones Sustainability Indexes are a family of indexes evaluating the performance of the world’s leaders in sustainability. They are the longest-running global sustainability benchmarks worldwide and have become the key reference point in Sustainability Investing...
- Dow Jones IndexesDow Jones IndexesDow Jones Indexes was formed in 1997 as an entity within Dow Jones & Co. It is now owned by the CME Group. It serves as the marketing name of CME Group Indexes, LLC. It produces, maintains, licenses and markets indexes as benchmarks and as the basis of investible products such as exchange traded...
- Webcast Energy Efficiency
- Webcast Healthy Lifestyle
External links
- http://www.sam-group.com
- http://www.sustainability-indexes.com
- http://robeco.com
- http://www.rabobank.com
- http://www.youtube.com/watch?v=Dgv2r3TF9jU&feature=related
- http://ch.panasonic.co.jp/global/contents/03143/
- http://www.youtube.com/watch?v=fRnZY6VZU-8
- http://www.youtube.com/watch?v=gzOiAOWRaUU