Australian Ethical Investment

1. - An alternative review of performance - Australian Ethical Investment Organisational Performance Consultants: Tripharn Teki, Hout Sok, Peter Enzerink, Shawn Boughey

2. Who is AEI? • Founded in 1986 and employing 55 people. • Environmentally and socially responsible investment. • AEI provides five retail investment trusts, with approximately 140 individual investments. • Retail superannuation fund that is valued at approximately $500 million.

3. Organisational Performance Consultants • Alternative performance metric compared to current TBL. • Provide a summary report (2000 wds) and presentation to the Board of Directors of AEI. • Utilised the Balanced Scorecard Method for measuring performance. • System, Power and Structural view.

4. Areas of Performance • Employee Satisfaction • Consultant – Hout Sok • Financial Performance • Consultant – Peter Enzerink • Sustainability Performance • Consultant – Shawn Boughey

5. Environmental Sustainability Customer Employee Satisfaction Financial Operation Power View

6. Environmental Sustainability Customer Employee Satisfaction Financial Operation Environment AEI System View

7. Employee Satisfaction Staff Survey 2005-2008

8. Employee Satisfaction Staff Turnover 2005-2008

9. Financial Performance • Publicly listed • Managed trusts • Superannuation trusts

10. Financial Performance • Managed trust performance (April 2009) • Equities: Ranked 4th of 33 Australian Mid/Small Growth funds • Balanced: Ranked 5th of 58 Multisector Balanced funds

11. Financial Performance • Funds under management (FUM)

12. Financial Performance • Tithing 10% of profit • Major: Bluegreen Films, Medical Students’ Aid Project • Minor: ACT Eden Monaro Cancer Support Group, Engineers Without Borders, Pedal Power ACT, Child Wise, Asian Women at Work and the Broken Hill & District Hearing Resource Centre • Climate change

13. Sustainability Performance • Investments • Operations • Best Practice Role Model

14. Sustainability Performance • Trevor Pearcy House – New Office Building • ENERGY • Upgraded insulation & exposed internal mass • Natural ventilation with mechanical back-up. • Operable windows, ceiling fans & radiators • Solar hot water • ~70% reduction in energy use

15. Sustainability Performance • Trevor Pearcy House – New Office Building • WATER • ~75% reduction in water use • Rainwater capture • Low flow urinals (retrofit) • AAAA showerheads • Dual flush toilets (retrofit)

16. Sustainability PerformanceEnergy

17. Sustainability PerformanceWater

18. Sustainability PerformanceWaste

19. Sustainability Performance • GRI – Global Reporting Initiative • Savings in Energy and Water Translate to Financial Performance • Crucial to maintain leadership in this area

20. External Validation • Meet these measures = Meet the strategic goals of AEI. • Customer Retention and Acquisition. • External validation of AEI performance. • Customers will not invest in a poor performing organisation.

21. Recommendations • Need for specific metrics for Employee Satisfaction. • Current market volatility and impact on investment. • Impact of climate change and the effect on investment.

22. Conclusion • Performance is in line with market expectation. • A number of recommendations should be investigated.