Triodos Investment Management
An investment point of view on tax transparency
Banking Transparency
Brussels, November 6th 2014
0
Case example
Starbucks
1
Case example
Google
2
Main message: companies have a responsibility towards society!
Thus:
• Follow the spirit of the law not the letter
• Pay taxes in the country where the earnings are realised
• No use of “tax havens”
• No use of “special financial vehicles/ hybrid instruments”
• No aggresive tax planning
• Policies should be public available -> transparency!
• An implementation plan for these policies is public available
• Country by country reporting should be obliged for each industry
3
Triodos Bank
Organisational structure
Retail & Business Banking
Netherlands | Belgium | Germany | Spain | United Kingdom
Foundation for the
administration of
Triodos Bank Shares
Investment Management
Triodos Bank
Europe | Emerging markets
Private Banking
Netherlands | Belgium
4
Triodos Bank
Assets under management
In millions of EUR
8,000
7,000
6,400
6,000
5,617
5,000
2,000
1,000
Triodos Bank
4,479
4,000
3,000
6,800
3,638
3,067
1,591
280
1.757
356
2.050
2.187
436
557
2.500
2,400
685
743
0
2009
2010
2011
2012
2013
5
H1
2014
Investment
Management
Private Banking
Triodos and investing in listed companies
Assets under Management (x €M)
1600
1400
1200
1000
800
PB Man.acc.
600
SICAV I
400
200
0
2009
2010
2011
2012
6
2013
2014 (end
July)
Triodos SRI Investment Process – sustainability selection
A three step approach
The research process includes the following three steps:
OR
1
Step 1: Selection of companies that derive over 50%
of their revenues from sustainable
2
Step 2: Selection of companies that are best-in-class
with regard to their sustainability performance
in their sector.
products or services
3
Step 3: All companies are tested on the basis of the
minimum investment criteria.
7
Triodos SRI Investment Process – sustainability selection
Minimum Investment Criteria
The Minimum Investment Criteria can lead to exclusion in
three different ways (not in order):
1
Product Related, e.g. Tobacco
2
Process Related, e.g. Human Rights
violations
3
Precautionary Principle, e.g.
Environmental policy
8
Engagement Approach
•
•
•
2013 and 2014 enganged with all companies in our portfolio on tax policy and transparency
Main outcome: very few companies have a policy public available
Developing minimum standards on this topic
9
Case example Engagement
DSM
10
Case example Engagement
Vodafone
11