is sri screening a drag on returns?
DESCRIPTION
David Creighton, CEO - Cordiant Capital - CanadaTRANSCRIPT
Is SRI Screening a Drag on Returns?
David G. CreightonPresident and CEO
Cordiant Capital Inc.
TBLI 2007 EuropeNovember 15 & 16
Paris
1
What Is Cordiant?• Montreal-based manager of Emerging Market private equity
and debt funds
• $1.14 billion of subscriptions since founding in 1999
- three debt funds: IFPT ‘01, IFPT ’04 & CELF III- one private equity fund: Canada Investment Fund for Africa
• Fund participants include a selection of the world’s top institutional investors
• Over 100 investments in more than 40 emerging countries
• All investments are screened and monitored for SRI
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3
Gas pipeline
RealEstate
Container Port
Oil & Gas
Tire plant
SupermarketsPower GenerationBankCar LeasingOutdoor Advertising
Power Transmission
Gold Mine
Stainless Steel
Hotels
Water Utility
GeothermalPowerGeneration
Pig Breeding
Chemicals
Wood Products
Cement
Soybean Crushing & Logistics
Private PowerGeneration
Glass Factory
Oil & Gas Pipeline
Car LeasingNecktie Manufacturer
Banks
Oil & Gas
Banks
Bank
Regional Infrastructure Bank – Latin America
Toll Road Operator
Fertilizers
Ammonia Plant
Gas power plant Cosmetic
packaging
Potash Mine
Oil & Gas
Oil & Gas
Construction
Building Material Manufacturer
Mobile Telecom
Bank
Diesel Power Generation
Galvanized Steel
Electricity Distribution
Gold mineOil & Gas
Electric Power Generation
Banks
ConsumerPaper
Steel
Petrochemicals
Cordiant Investments
Petrochemicals
Mobile Telecom
Construction EquipmentLeasing
Responsible Investing
• SRI, CSR, PRI, ESG, TBLI
• Equator & UN Principles for Responsible Investment
• Input from NGO’s
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Is the ‘Broad Brush’ Method Effective?
• Each situation is different
- Requires perspective and tradeoff
• Understand specific dynamics
• Use discretion and logic
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Engagement at the Outset:Examples and Issues
• Nigerian Petrochemicals: Share Ownership
• China, Metalurgical Coke: Environment
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The Ripple Effect:Demonstrating the Value of Good Governance
• Banco Uno – Central America
• Gostomel – Ukraine Manufacturing
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TBLI 2007 Europe November 15 & 16, 2007
Cordiant Capital Inc.Suite 24001010 Sherbrooke Street WestMontreal, QC, Canada H3A 2R7www.cordiantcap.com