Natural Value Initiative

Testing

The Ecosystem Services Benchmark (ESB) was tested on 31 companies in the food, beverage and tobacco sectors in the UK, Brazil, the USA, Australia, Switzerland, Malaysia, the Netherlands and France. Collectively these companies represented a market capitalization of over Euro 790 billion at 15th September 2009. These sectors are amongst those that are most dependent on ecosystem services, but also have the potential to have a significant impact on biodiversity.

The sample (listed below) combines multinational companies with Brazilian based companies as a means of creating a snapshot through the supply chain. Brazil was selected as a focus for the pilot as financial institutions within the country are increasingly active on environmental risk and the country plays a vital role in the global food web and is responsible for 25% of the world’s food production.

Companies were selected from the investment holdings of our investor collaborators: three UK-based professional asset managers (Aviva Investors, F&C Investments and Insight Investment); US-based asset manager (Pax World); Brazilian based bank (Grupo Santander Brasil) and a leading Australian pension fund, VicSuper.

Company

Stock exchange

Market capitalisation
(Billion Euro)

Producers

Açúcar Guarani (ACGU3)

São Paulo

0.63

Bunge (BG)

NYSE

5.46

COSAN (CZZ)

NYSE

1.56

Grupo André Maggi

Private company

0.00

SLC Agrícola (SLCE3)

São Paulo

0.59

United Plantations (UTDPLT)

Kuala Lumpur

0.53

Processors

Cadbury plc (CBRY)

London

11.95

Dean Foods (DF)

NYSE

2.23

Groupe Danone (BN)

Euronext

24.57

Hain Celestial (HAIN)

NASDAQ

0.45

Nestlé (NESN)

SIX Swiss Exchange

105.21

Parmalat Brazil (LCSA4)

São Paulo

2.80

Sadia (SDA)

NYSE

0.94

Unilever (UN)

Amsterdam

52.15

Tobacco

Alliance One International (AOI)

NYSE

0.29

British American Tobacco (BATS)

London

44.11

Imperial Tobacco Group (IMT)

London

20.18

Philip Morris International (PM)

NYSE

62.56

Beverages

The Coca-Cola Company (KO)

NYSE

81.41

Diageo plc (DGE)

London

26.67

Foster’s Group (FGL)

Australian Exchange

6.36

Heineken N.V. (HEIA)

Amsterdam

15.11

PepsiCo (PEP)

NYSE

62.48

SABMiller plc (SAB)

London

25.68

Retailers

Ahold (AH)

Amsterdam

10.23

Carrefour (CA)

Euronext

21.93

M&S (MKS)

London

6.57

Sainsbury’s (SBRY)

London

6.91

Tesco (TSCO)

London

34.46

Wal-Mart (WMT)

NYSE

134.79

Woolworths (WOW)

Australian Exchange

20.78

 

Note: abbreviations after company name refer to company ‘Tickers’. Click on company name to link to Investor Relations web page. Source: www.corporateinformation.com and www.google.com/finance Figures quoted on 15th September 2009

The results were used to review the ESB and fine-tune it for use by the wider investment community.  See ‘NVI toolkit.’ for the final tool and for a summary of the results of our analysis which are being used by our investor collaborators to inform their engagement with the companies above.
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