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NIRI meeting April 2012

Novelis Our Sustainability Journey. NIRI meeting April 2012. Building our Sustainability Agenda. Dialogue with stakeholders is key. What Customers Say: Automotive.

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NIRI meeting April 2012

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  1. Novelis Our Sustainability Journey NIRI meeting April 2012
  2. Building our Sustainability Agenda Dialogue with stakeholders is key
  3. What Customers Say: Automotive “The Jaguar XJ is an enlightened approach to the next generation of Jaguar performance and sustainability. Lightweight aluminum and aerospace-inspired methods of construction deliver optimal strength and rigidity, not to mention gains in performance, fuel efficiency and environmental benefit..” Extract from Jaguar News, January 2012
  4. Global Trends Point to Increasing Aluminum Demand Economic Development Material Preference Sustainability Increasing urbanization, modernization of infrastructure, and global wealth Increasingsubstitution to aluminum from other materials in emerging markets Growing awareness of environmentalism and demand for recycled products
  5. Global demand for rolled aluminium is growing Thousands of tonnes 4% or 700 thousand extra tonnes per year until 2015 Source: Novelis Fact Base; CRU
  6. Who is World-Class in Sustainability?
  7. Main Related Issues for Novelis
  8. The Novelis Sustainability Approach will… Grow our long term profitability whilst we balance economic, environment and social interests Be aligned to our strategy and embedded across our organization Offer innovative aluminum low carbon solutions while providing society positive benefits across the application’s life cycle Environment Social Economy
  9. Novelis’ Sustainability Targets Approximately double EBITDA by FY16 Increase global supply from recycled aluminum to 80% Energy usage will be reduced by 39% Total GHG emissions will halved Water usage will be reduced by 25% Zero land-filled waste Recordable Case Rate of zero All employees receive annual performance reviews World-class leadership development programs 100% of operations have local engagement programs
  10. Profitability [Mio US$] We will approximately double our profitability from FY11 to FY16 ~$2 $1.1
  11. Recycling [% on FRP sales] Novelis will reduce the lifecycle environmental impact of aluminum products by increasing its global supply from recycled aluminum to 80% by 2020 80% 33% 30% Baseline average FY’07-09
  12. GHG Emissions [million Tonnes of CO2eq.] The total GHG emissions will be almost halved Scope 1 (fuels) and 2 (electricity) Scope 3 (primary and transportation) 21.0 20.2 11.1 Baseline average FY’07-09
  13. Novelis Sustainability Advisory Council Created in order to critique our performance help us apply external best practices to our program improve our external dialogue and credibility Members with experience from the following organizations: Stuart Hart, Enterprise for a Sustainable World, Cornell University Jeff Keefer, DuPont Miguel Milano, Instituto LIFE, Brazil Jonathon Porritt, Forum for the Future Matt Arnold, JP Morgan Novelis CEO, Chief Strategy Officer and Chief Sustainability Officer
  14. Novelis Sustainability Report First Sustainability Report issued in 2011 Annual commitment to report progress against our targets Engagement process ongoing with our key stakeholders
  15. An Investor Perspective on Sustainability B. Scott Sadler, CFA Spring 2012
  16. 1. Sustainability -- Why it matters to investors 2. Our approach, research and resources. 3. The Evolution of ESG Investing Overview
  17. 1.SustainabilityWhy it matters
  18. Why sustainability matters to investors Scrutiny of environmental, social and corporate governance (ESG) factors uncovers truly superior companies. A portfolio comprised of ESG best-of-class companies has been shown to outperform over time. ESG worst-of-class firms have likewise underperformed. Sustainability leaders more fully disclose risks, have a lower cost of capital and give investors fewer negative surprises. Significant benefits can accrue to society by favoring companies with superior environmental and social standards.
  19. You’re in good company In the United States today, $1 out of $10 under professional management employs an SRI process… … and SRI is one of the fastest growing investment disciplines.
  20. ESG is not just “E” Environmental: Emissions and climate change regulation Resource and water use efficiency. Pollution penalties or litigation Energy consumption and trends Social: Social and Labor Issues Supply chain management Community involvement Human and worker’s rights Safety issues and fines Governance: Board independence Management diversity Corporate political contributions Executive compensation Accounting standards and oversight Bribery and corruption Product Product safety and impact Product access for underprivileged populations When companies get these issues right, shareholders and society benefit.
  21. 2. OurApproach
  22. Boardwalk’s approach to SRI Invest in best-of-class, financially-strong companies Diversify by industry and country Apply sustainable principles across all asset classes Include non-conventional assets Rebalance regularly to mitigate risk
  23. Global equity research methodology Sort Scrutinize Rank Confirm Construct Customize Global Investable Universe (3000+ companies) ESG and financial scoring on ~150 metrics Engagement Best–of-Class Performers Portfolio Construction Client customization: Values-based, industry exclusion, special issues
  24. Asset allocation A comprehensive sustainable portfolio: Core equity:Global ESG Titans The world’s sustainability leaders Diversified, large cap, global Supporting:Other equity Specialist SRI managers Sustainable ETFs and funds Satellite:Other assets Commodities: Inevitable scarcity Lifestyle (quality-of-life) muni bonds Less liquid or alternative strategies Impact investments Microlending, private equity
  25. 3. Evolution
  26. Our SRI partners: (Fewer questionnaires for you) ESG data and issues monitoring: Nearly 20 years experience in market-leading SRI research. Awarded 2010 Best ESG Research House. Company ranking portal: 90+ different ranking sources across 65 countries, 5000 companies. Portfolio analytics: Backtesting, performance measurement, trading, proxy voting. Corporate engagement: Clearinghouse of investor concerns and engagement activity. Alliance of investors with $20+ trillion in assets. SRI manager platform: Extensive roster of SRI specialists and SRI “overlay” managers.
  27. -- One Source for ESG data
  28. Detailed Reports
  29. -- ESG tools on the web
  30. Mainstreaming ESG Information on Huffington Post.com ESG Data on Bloomberg
  31. Social Media is Increasingly Critical
  32. Thanks for all you do
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