Geneva: FOURTEEN of the world's largest investment companies today launch a ground-breaking report for the United Nations Environment Programme Finance Initiative (UNEP FI).

The report, entitled "Show Me the Money", confirms the growing importance of environmental, social and governance (ESG) concerns to the global investment industry. UNEP FI is a unique public-private partnership between UNEP and more than 160 banks, insurers and asset managers.

"There is a growing worldwide understanding of the pivotal role the investment community and capital market actors have to play in addressing critical ESG challenges, " explained Achim Steiner, UNEP Executive Director and United Nations Undersecretary General.

"At the same time, the mainstream investment community is waking to the burgeoning opportunities associated with sustainability promoting companies, technologies and investment funds. From clean-tech, to renewables and ecosystem services, the growth industries of the 21st century are emerging at an accelerated pace," added the head of UNEP.

"Show Me The Money" is a 47-page summary report synthesising more than 1,000 pages of research from the mainstream financial analyst community. The report draws on work by a group of leading financial institutions* and covers the impact of qualitative and new risk issues on company value. Industries covered include the auto-industry, aerospace and defense, the media, and the food and beverage industries.

Highlights from several of the sector reports include:

On corporate governance issues the Deutsche Bank AG's report states: "Recognising the materiality of corporate governance on equity performance and valuation is just one step on the path to more rigorous equity analysis......It is now increasingly accepted that corporate governance, environmental and social factors are components of a company's equity risk premium."

On obesity and the food and beverage industry JP Morgan Securities Ltd's report states: "Growing awareness of the relationship between diet and health and in particular of serious health risks posed by obesity is having a major impact on consumer purchasing behaviours and choices that will durably impact and reshape the food and beverages industry."

The media sector report by Goldman Sachs Global Investment Research states: "We find that companies that demonstrate leadership on our ESG framework, a proxy for quality of management over the long term, lead their sub-sector peers on long-term cash returns. In addition, we also focus on companies showing improvement in ESG performance as we believe that such companies possess a view towards management for the long term, likely to result in improvements in cash returns."

The auto industry report by CM-CIC Securities states: "The rise in resource prices and particularly the exploding oil price is the hard lesson that the automakers need, to understand that current modes of combustion probably do not constitute the long-term solution. The industry must begin looking for alternatives. Automakers, oil companies, governments and consumers all need to start preparing themselves today for the reality of long-term high prices for black gold."

"Show Me the Money" is the second such synthesis report in the UNEP FI "Materiality Series" launched by the partnerships Asset Management Working Group. The first "Materiality Report", published in June 2004, explored the impact of ESG risks on the equity value of listed companies in different industry and business sectors. The report launched today builds on this work and provides coverage across additional industry sectors.

"Show Me the Money" is published just over two months after United Nations Secretary General Kofi Annan launched the United Nations Principles for Responsible Investment (see www.unpri.org). More than 70 institutional investors from 16 countries and representing more than USD 4.5 Trillion have now signed the UNPRI.

"With the launch of both UNPRI and "Show Me the Money" we can see that some of the largest and most concentrated pools of capital are sending clear signals to the whole investment chain indicating that ESG issues are material and must be integrated into investment analysis, decision-making and action," explained Paul Clements-Hunt, Head , UNEP Finance Initiative.

To download "Show Me The Money" please visit:

http://www.unepfi.org/fileadmin/documents/show_me_the_money.pdf

*Participating institutions include: ABN Amro Real Corretora, CM-CIC securities, Deutsche Bank AG/London, Dresdner Kleinwort Wasserstein Securities Limited, Goldman Sachs Global Investment Research, JP Morgan Securities Ltd, Merrill Lynch Global Securities Research & Economics Group, Morgan Stanley & Co. International Limited, UBS Limited and WestLB AG.

About UNEP FI

The United Nations Environment Programme Finance Initiative (UNEP FI) is a unique global partnership between UNEP and the financial services sector. UNEP FI works with 160 financial institutions - banks, insurers, asset managers, and pension funds - to develop and promote linkages between sustainability and financial performance. UNEP FI is the oldest and largest partnership between the UN and the global financial sector. UNEP FI promotes the adoption of best environmental and sustainability practice at all levels of financial institution operations. For more information on UNEP FI, see: http://www.unepfi.org/

About UNEP FI Asset Management Working Group (AMWG)

A global platform of asset managers that collaborate to drive the mainstream integration of ESG issues in investment decision-making and ownership practices. The Working Group consists of 14 asset managers with combined mandates of 1.7 trillion USD. Members include:

ABN AMRO Asset Management
Acuity Funds
BNP Paribas Asset Management
Calvert Group
ClearBridge Advisors, Legg Mason
Groupama Asset Management
Henderson Global Investors
Hermes Pensions Management Ltd
HSBC Halbis Partners
Insight Investment
Mitsubishi UFJ Trust & Banking Corp
Morley Fund Management
RCM (Allianz Global Investors)
Sanpaolo AM, Eurizon Financial Group

For more information on UNEP FI, see:

http://www.unepfi.org/work_programme/investment/amwg

About the UN Principles for Responsible Investment (PRI)

There is a growing view among investment professionals that environmental, social and governance (ESG) issues can affect the performance of investment portfolios. Investors fulfilling their fiduciary (or equivalent) duty therefore need to give appropriate consideration to these issues, but to date have lacked a framework for doing so. The Principles for Responsible Investment provide this framework.
The Principles are voluntary and aspirational. They are not prescriptive, but instead provide a menu of possible actions for incorporating ESG issues into mainstream investment decision-making and ownership practices.
The Principles were launched by UN Secretary General Kofi Annan after he rang the opening bell at the New York Stock Exchange on 27th April, 2006

For more information on the UN PRI, see: http://www.unpri.org

Media Contacts:

Paul Clements-Hunt, Head of Unit, UNEP Finance Initiative (Geneva)
Tel: +41-79-349-54-86
Email: pch@unep.ch

Nick Nuttall, UNEP Spokesperson, Office of the Executive Director (Nairobi)
Tel: +254 207 623084
Mobile: +254-733-632755 or +41-79-596-5737
Email: nick.nuttall@unep.org

Asset Management Working Group Media Contacts:

Co-Chair of the Working Group:
Vincent Zeller, CIO and General Manager, Groupama Asset Management
Tel: +33 1 44 56 57 45
Email: vzeller@groupama-am.fr

Co-Chair of the Working Group:
Carlos Joly, Advisor to the CEO, Groupama Asset Management
Tel: +33 6 7756 4596
Email: carlos.joly@gmail.com

North American Member:
Julie Gorte, Vice President & Chief Social Investment Strategist, Calvert Group
Tel: +1 301 657 7039
Email: Julie.gorte@calvert.com

North American Member:
Mary Jane McQuillen, Director Social Awareness Investment, ClearBridge Advisors
Legg Mason
Tel: +1 212 559 0937
Email: MJMcQuillen@LeggMason.com

UK Member:
Colin Melvin, Managing Director, Hermes Equity Ownership Service, Hermes Pensions Management Ltd
Tel: +44 207 680 2251
Email: c.melvin@hermes.co.uk

Latin America:
Pedro Villiani, SRI Equities Portfolio Manager, ABN Amro Real
Tel: +55 11 3174 6683
Email: pedro.angeli.villani@br.abnamro.com

United Nations Environment Programme Finance Initiative (UNEP FI)

United Nations Environment Programme Finance Initiative (UNEP FI)

UNEP FI is a unique global partnership between the United Nations Environment Programme (UNEP) and the global financial sector. UNEP FI works closely with nearly 200 financial institutions who are Signatories to the UNEP FI Statements, and a range of partner organizations to develop and promote linkages between sustainability and financial performance. www.unepfi.org

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