SUSTAINABILITY DIMENSION

PARTICIPATIONRISK VALUE CHAIN RISK

RISK SCORING: GOLD MINER
TOTAL DISRUPTION RISK RATINGS
COUNTRY RISK DIRECT RISK
6.33 5.66
INDIRECT RISK
5.44
SECTOR RISK
6.40
HIGH RISK
10 0 8 6 4 2 1 3 5 7 9
LOW RISK
OVERALL
5.89
RISK SCORE
OVERALL
ECONOMIC
NATURAL
6.12
HUMAN
5.48
SOCIAL
BUILT
JSE 100 RISK SCORING: NC8 NON-RENEWABLE RESOURCES
GRAPH OF TOTAL DISRUPTION RISK RATINGS
BASIC MATERIALS
CONSUMER GOODS
CONSUMER SERVICES
FINANCIALS
HEALTH CARE
INDUSTRIALS
OIL & GAS
TELCOS
10 9 8 7 6 5 4 3 2 1 0
2.89
TOTAL
RISK SCORE COUNTRY RISK
4.61
SECTOR RISK
2.22
SECTOR RISK RATINGS
4.9
2.41
2.15
2.14
2.07
2.2
2.09
2.19
WHO WE ARE EXAMPLES OF RI DATA DASHBOARDS
MAKE CONTACT
ROUTE2
TIM BARKER
timb@route2sustainability.com
+44 786 747 3983
www.route2sustainability.com
GENESIS
RYAN SHORT
ryans@genesis-analytics.com
+27 11 994 7000
+27 82 349 0030
www.genesis-analytics.com
> > ABOUT GENESIS ANALYTICS
Genesis Analytics is the leading South African economic consulting frm.
Our work in South Africa for 17 years at the highest levels of business and
government gives us the best understanding of South African investment
and sustainability concerns.
Genesis co-wrote the offcial guide to implementing RI for pension funds
in South Africa and is the leading ESG advisory frm for pension funds and
asset managers.
> > ABOUT ROUTE2
Route2 is an international data and analytics frm that works with companies
and investors to link sustainability with performance and value.The Route2
data tool provides comprehensive coverage of risk themes and country
and sector ratings and is a leader in terms of usability for integrated risk
assessment.
GENESIS / ROUTE2 OFFER
ALL RI ADVISORY AND DATA
SOLUTIONS IN ONE SERVICE.
The Overall Risk Score indicates the exposure this entity
(a JSE listed gold miner) has to a series of environmental
(Natural Capital) and people (Human Capital) risks. Use this
risk score to compare this entitys risk with its peer set.
The Route2 interface is user-
friendly, enabling integrated and
scalable risk assessment.
It is marginally more exposed
to environmental risk (Natural
Capital) vs. people risk
(Human Capital).
RESPONSIBLE INVESTMENT SERVICES
>> Advisory. >> Data. >> Analytics.
Its overall exposure is driven
marginally more by the industry
sector it operates in (Sector
Risk) vs. the location of its
operations (Country Risk).
There is marginally greater risk
exposure to its direct operations
(Direct Risk) vs. exposure within
its supply chain (Indirect Risk).
Multiple drill downs are available.
Here we compare the JSE 100
sectors exposure to NC8: Non
Renewable Resource risk.
CHANGING
BEHAVIOUR
IMPLEMENTING
YOUR POLICY
DESIGNING
YOUR RI POLICY
GETTING
STARTED
What drives
RESPONSIBLE
INVESTMENT
SUSTAINABILITY
Consumers are demanding
sustainable investment
REGULATION
and the way that investors
are expected to make decisions
EXTERNAL DRIVERS
INTERNAL DRIVERS
BETTER FINANCIAL RETURNS
RI leads to better
fnancial returns
ACTIVE OWNERSHIP
Pension funds are the biggest
owners of assets in the world
NEW GLOBAL
INVESTMENT PRACTICES
which changes how we measure
return on investment
FIDUCIARY DUTY
trustees are obliged to
consider ESG factors
Source: Deutsche Bank Group, 2012 Source: Ernst and Young, 2013
Finding from academic studies of
companies with high ESG ratings:
Motivations for investors to consider ESG issues
(a study conducted by E&Y in 2013, n=559)
Percentage of academic studies 3
Evident market-based out performance 89%
85%
100%
Evident accounting-based out performance
Reduced cost of capital
Personal Client
Demand
Regulation PRI CRISA Return Citizenship
Critical Important Not Important Irrelevant
S
T
E
P

1
S
T
E
P

2
S
T
E
P

3
S
T
E
P

4
GENESIS / ROUTE2 Services
GENESIS / ROUTE2 PROVIDE PENSION
FUNDS, ASSET MANAGERS AND INVESTMENT
CONSULTANTS WITH A FULL SUITE OF ESG DATA,
ANALYTICS AND ADVISORY SERVICES.
RESPONSIBLE INVESTMENT: A New Reality THE RI JOURNEY: How we can help
RESPONSIBLE INVESTMENT (RI) means that pension funds and asset
managers must actively include environmental, social and governance
(ESG) considerations into all investment decisions.
ESG DATA IS CRITICAL
We provide data:
> On more than 40 risk theme areas;
> Across 90 different countries;
> Covering more than 100 industries;
> Including specifc analytics of all of the JSE top 100;
> Tailored to the South African context;
> Analysed at the industry and frm level;
> Updated annually;
> Identifying ESG red fag warnings in real-time
AND SO IS KNOWING WHAT TO DO WITH IT
We provide end-to-end RI services:
> Full turnkey services;
> Global best practice tailored to the South African context;
> Data analytics integrated with risk management advisory and reporting;
> Intelligent advisory;
> Bespoke strategy development
> ESG data analytics
> Shareholder engagement strategy
> Proxy voting strategy
> ESG data analytics
> Investment mandate reform
> Policy and procedure design
> Reporting (FSB; CRISA; UN PRI)
> RI policy design
> Portfolio risk assessment
> ESG data analytics
> Investment policy design
> Tutorials and training
NOW MANDATED BY
SOUTH AFRICAN LAW
REGULATION 28:
A fund has a fduciary duty
to act in the best interest
of its members... This duty
supports the adoption of
a responsible investment
approach Prudent investing
should give appropriate
consideration to any factor
which may materially affect
the sustainable long-term
performance of a funds
assets, including factors of
an environmental, social and
governance character. The
concept applies across all
assets and categories of
assets and should promote
the interests of a fund in
a stable and transparent
environment.