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SOURCE Sustainable Insight Capital Management
REPORT DEMONSTRATES LEADERSHIP ON CLIMATE ENGAGEMENT BENEFITS ENVIRONMENT AND INVESTORS
NEW YORK, Sept. 24, 2013 /PRNewswire/ -- Sustainable Insight Capital Management (SICM), an investment management firm that combines a disciplined security selection process with environmental, social, and governance principles, launched today with a joint release with the Carbon Disclosure Project (CDP), identifying the benefits of investing in companies with superior environmental disclosure.
The report, "Linking Climate Engagement to Financial Performance: An Investor's Perspective" analyzed the relationship between corporate engagement and action on climate change and financial performance of the world's largest corporations. CDP sorted these 702 companies into quintiles, with the companies with the highest disclosure score earning a 1, and companies with the lowest disclosure scores getting a 5. SICM and CDP were able to determine that the companies in the top quintile provide a +5.2% return on equity, +18.1% cash flow stability, and +1.6% dividend growth over their peers in the bottom quintile.
According to SICM CEO Kevin Parker, "Our analysis demonstrates that industry leaders are not only taking critical steps to establish the requisite governance, management systems, and environmental efficiencies to engage on climate, but that they have also demonstrated superior profitability, more stable cash flows and higher dividend growth for investors."
Sustainable Insight Capital Management operates under the philosophy that today's most forward-thinking companies are responding to challenges and opportunities created by population growth, natural resource scarcity, climate change urbanization, and globalization. SICM's research suggests that markets are inefficient and not accurately pricing securities to reflect these macro trends.
SICM brings together some of the most elite names in sustainable investing. Kevin Parker, the firm's CEO, was a member of the Management Board of Deutsche Bank for 10 years and the former Global Head of Deutsche Asset Management from 2004 - 2012. He is also the founder of agri.capital which has grown to become the largest biogas and biomethane company in Europe.
Joining Mr. Parker will be Portfolio Managers John Willis, a former Managing Director at Deutsche Asset Management, where he served as the Global Head of Trading, and Bruce M. Kahn, Ph.D. a former Director at Deutsche Asset Management where he served as an investment strategist conducting analytical research on sustainable investing. Bruce also managed a Sustainable Investment portfolio at Citi Smith Barney, across a broad mix of sectors including sustainability leaders, agri-business, clean tech and renewable energy companies. Paul Spence will serve as SICM's Head of Portfolio Risk and Construction. Prior to joining SICM, Paul was the Global Head of Risk and Portfolio Analytics at Deutsche Asset Management.
About Sustainable Insight Capital Management: SICM was founded to enable investors to benefit from the transition to a resource-constrained economy. We believe today's most forward-thinking companies are responding to challenges and opportunities created by population growth, natural resource scarcity, climate change, urbanization and globalization. Our research suggests that markets are inefficient and not accurately pricing securities to reflect these macro trends. Leaders who manage these sustainability risks have historically demonstrated superior performance, more stable cash flows and higher dividend growth over time.
The above research materials are for informational purposes only. They are not an offer or solicitation for any security or investment product managed by SICM and should not be construed as investment advice. Investment strategies implemented by SICM on behalf of its clients may or may not trade or hold positions in the securities referred to above. Further, investment accounts managed by SICM may or may not employ strategies based on or related to the above research."
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CONTACT: JONATHAN GOLDBERG 212-843-9335
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