Inrate SA Company Brochure

Sustainable Investment Solutions© All rights are reserved. The entire paper and its parts are protected by copyright. Utilizations other than those legally permitted need the prior written permissions from the authors. Illustrations: © istockphoto.com / chuwyLayout: zengarten.comInrate, August 20113• Inrate has over 20 years experi-ence of monitoring sustainability trends and corporate practices.• Oldest sustainability rating agency in Continental Europe.• Our sound understanding of sustainability allows us to constantly develop innovative and reliable research solutions for investments.Inrate is an independent sustainability rating agency based in Switzerland. Since 1990, we have been combin-ing our sound understanding of sustainability with innova-tive research solutions for the financial markets – the main reason why we are one of the largest and most respected agencies in Europe. Our mission is to be an integral part of the global finan-cial infrastructure by providing sustainability intelligence that allows capital markets to redirect investment flows towards a more sustainable economy.To do this, Inrate analyzes and assesses the ecological and social responsiveness of companies, institutions and countries by investigating the way they integrate sustain-ability issues into their strategies and operations. Our pro-prietary frameworks and methodologies have been devel-oped over the past 20 years. Supported by an experienced team of analysts, we are able to translate complex sustainability issues into useful tools to empower financial markets and investors. Inrate – for a sustainable future4Inrate’s contribution to sustainable development• With our research services, we foster and support the need for transparency in sustainability performance. • Our assessments contribute to redirecting capital flows towards a more sustainable economic system.Sustainability, and its implications for business and inves-tors, is a complex issue and requires expertise in many dif-ferent fields, ranging from environmental, social, legal, and ethical issues to business, economic, political and scien-tific trends. It is vital to grasp what these factors mean for business sectors and the associated risks and opportuni-ties that exist for companies. As the longest established provider of sustainability services in Continental Europe, we have the capacity to meet this complex challenge. Many companies now produce information on how they address sustainability. However, it is extremely impor-tant to distinguish between those that are being sincere by taking positive action and those that are simply paying lip-service. Transforming this information into a useful tool requires experience and expertise. Sustainable developmentSustainable development is development that “meets the needs of the present without compromising the ability of future generations to meet their own needs”. (Brundtland Commission). Inrate helps investors to integrate the sus-tainable development dimension into their investment practices.Sound understanding of sustainability – vital for our success 5Since 1990, Inrate has been at the interface of sustainable development and financial markets.6Sustainable investment sets monetary incentives towards sustainable development and performs an important economic steering effect.7Performance of sustainable products • Studies show that sustainable investment products have favour-able risk characteristics and investment return profiles at least similar to traditional financial products, if not superior. • Therefore, sustainable investment products are suited to investors who wish to combine financial success with a contribution to sustainable development.The ability of companies to integrate sustainability factors into strategies and operations is increasingly being con-sidered a leading indicator of their management quality and economic performance. Therefore, taking into account ecological and social dimensions adds value to the invest-ment research and process by uncovering hidden elements of companies’ risks and opportunities.Sustainable investment – a growing trendConsidered for many years as a short-term fashion, sus-tainable investment is increasingly becoming a hard trend. Assets managed according to sustainability factors in Europe have displayed steady growth over the years despite economic downturn and crises. Historically, the Swiss financial marketplace has played a leading role in the market for sustainable investment products. Today, it is con sidered as one of the most dynamic markets and Inrate has been part of it from the start.Pension funds have been, and they still are, a major catalyst for sustainable investment. They increasingly see it as a matter of risk management and fiduciary duty. Asset managers and financial analysts in turn are under increas-ing pressure to enrich their traditional financial services by integrating ESG (environmental, social, governance) con-siderations into their products and investment processes.Why invest sustainably?8Our clients are:• Established sustainability analytical teams • Mainstream buy-side and sell-side research • Institutional and retail fund managers • Private wealth managers • Private and public pension funds • Insurance companies • Fund consultants • Discretionary investment managers and advisors Financial analystsWhether the analysts are part of established sustainability ana-lytical teams or belong to the mainstream, Inrate provides flexible tools allowing complex sustainability issues to be integrated in an effective way into their analytical framework. Financial analysts can therefore enrich recommendations and opinions on a large universe of stocks.Fund managersFund managers are seeking outperformance and better under-standing of risk when they incorporate sustainable research into their process. Inrate, based on its long experience of working with many different investment approaches, is able to tailor different solutions depending on the investment product profile.Institutional investorsThe trustees or pension-plan Board Members are empowered to ensure that the assets are invested according to their stated sus-tainability criteria. Inrate works in partnership with many such institutional investors, enabling them to monitor the work of fund managers and review the overall sustainability exposure across all mandates. Sustainable investment solutions for a wide range of needs9We offer sustainability advice and solutions taking into account the varying needs of different investment strategies, objectives and constraints.10Since 1990 we have been at the forefront of innovation in sustainability analysis and expect to remain leaders in the field for years to come.11Our clients’ recognitions• Clients using our services regularly achieve top market recognition for their products, performance or implementation of sound sustain-ability investment approaches.• Using our highly selective sustain-ability solutions, a well-known retail investment manager has won the prestigious Lipper Fund Award for best performance over five years in Swiss equities for five consecutive years.• A large institutional investor re-ceived top marks from the UN PRI initiative for the implementa-tion of its responsible investment principles.Inrate provides a wide range of sustainability research services:Our sustainability assessmentsidentify leaders, followers and laggards by investigating the way companies integrate sustainability issues into their prod-ucts and services, strategies and operations.Our sustainability investment universesintegrate conventional ESG issues in all the major global mar-kets as well as thematic topics such as climate change, mobil-ity and water. Our climate change assessmentsenable investors to identify risks and future opportunities. Our quantitative model envIMPACT® estimates GHG emissions of the entire life cycle and integrates a product analysis.Our portfolio analysisallows investors to monitor how their investments stand from a sustainability and climate change perspective.Our company screeningidentifies controversial products or practices and allows ex-clusion decisions while reducing both reputational and ethical risks.Our services12Independent Board of Experts• Our rating process is monitored closely by an independent Board of Experts. This body consists of designated and experienced specialists who are experts in their respective fields such as water, energy or diversity. • The Board of Experts has a con-siderable influence on the rating approach and the methodology and makes sure that the results of the sustainability analysis cor-respond to the given objectives.We have developed and adapted our research approach for over two decades. Our own internal work has been added to and improved upon through collaboration with our expert partners around the world. Furthermore, the overall research process is supervised by an independent Board of Experts to ensure that the end product is free from any bias and remains at the forefront of industry standards.We focus on the impact that corporate policies and man-agement actions have on a company’s sustainability perfor-mance and place particular emphasis on the relevance of processes, products and services for environment and society. Our research adopts a sector-specific view while assessing whether a company can manage sustainability risks and take advantage of any ESG opportunities.We have set up a rigorous research process from data sourcing to our final assessment. This includes:• Selection of trusted and credible local research partners around the world• Selection of professional information service providers• Quality management that focuses on consistency, compa-rability and traceability of resultsOur research processOur professional quality management as well as our independent Board of Experts ensure the high quality of our sustainability ratings.1314Our history of innovation 1994: first pioneering methodol-ogy for corporate sustainability assessments 1998: developed our “best in service” approach2005: first quantitative model to assess the climate change impact of companies over the entire value chain2006: launched theme-based research on fundamental sustain-ability trends (e.g. climate change, water)2009: first methodology to assess the sustainability of private equity investmentsInrate prides itself on its quality and integrity. Without them, the company would not be an industry leader today. Quality and integrity will continue to be the main drivers of our development going forward and are reflected in our staff, our clients, our partners and our work.Measurements of quality• Experienced analysts with multidisciplinary back-grounds• Research partners providing access to local knowledge (proximity, language and experience)• Rigorous, transparent research process Measurements of integrity• No consulting roles with rated companies• No assets under management• Project partner for the establishment of a sector-wide quality standard for sustainability researchQuality and integrity15• 20 years at the interface of sustainable development and financial markets• Sound understanding of sustainability• Multidisciplinary and international network structure • Innovative sustainability value chain assessment• Independent Board of Experts• Tailor-made solutions for clients with different needs• Entrepreneurial independenceOur success factorsInrate Ltd. Sustainable Investment SolutionsRue de Romont 2CH-1700 FribourgSwitzerlandBinzstrasse 23CH-8045 ZurichSwitzerlandT +41 58 344 00 00F +41 58 344 00 01info@inrate.comwww.inrate.com