Building a Global Standard with the


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Building a Global Standard with the
United Nations Global Compact and
Principles for Responsible

Socially Responsible Investment

Here and Abroad Conference

June 26, 2009

Progressive Asset Management (PAM) is the socially responsible division of
Financial West Group (FWG). Securities offered through Registered
Representatives of
Financial West Group


Progressive Asset Management, Inc. (PAM) is the first independent
service investment brokerage in the US to specialize in socially
responsible investing (SRI).

Since 1987, we have used our ownership in public companies as a
powerful vehicle for economic, social, and environmental

When many investors act in concert, the power of the share can make
itself felt on a global scale. PAM puts the power of the share to work
by offering clients the opportunity to invest for both social progress
and financial return.

About the United Nations Global Compact

Launched in 2000, the United Nations Global Compact is a both
a policy platform and a practical framework for companies that
are committed to sustainability and responsible business
practices. As a multi
stakeholder leadership initiative, it seeks
to align business operations and strategies with ten universally
accepted principles in the areas of human rights,
environment and anti
corruption and to catalyze actions in
support of broader UN goals. It is the world’s largest voluntary
corporate citizenship initiative, with over 6,500 signatories
based in more than 130 countries.

The Global Compact’s

Ten Principles

Human Rights

Principle 1: Support and respect the protection of internationally

proclaimed human rights

Principle 2: Not be complicit in human rights abuses

Labor Standards

Principle 3: Uphold the freedom of association and recognize

the right to collective bargaining

Principle 4: Eliminate all forms of forced and compulsory labor

Principle 5: Effectively abolish child labor

Principle 6: Eliminate discrimination in respect to employment

and occupation

The Global Compact’s

Ten Principles


Principle 7: Support a precautionary approach to

environmental challenges

Principle 8: Undertake initiatives to promote greater

environmental responsibility

Principle 9: Encourage the development and diffusion

of environmentally friendly technologies


Principle 10: Work against all forms of corruption, including

extortion and bribery

The UN Global Compact Network

Source: Goldman Sachs, 2007 GS Sustain Report

Social Vetting

The Global Compact requires business participants

on an annual basis to publicly disclose their
actions to advance the Ten Principles through a
Communications on Progress report.

In addition, the Global Compact is concerned with
“ESG” and what companies are doing to address
these factors.

What is ESG?







As business is adjusting to new economic and global
realities, there is an opportunity to reorient towards
sustainability. Today’s confluence of global threats
provides the most compelling and rational case in
recent memory for companies to:

• Proactively embrace an expanded view of risk

and opportunity management to include ESG

• Increase focus on long
term value creation;

• Emphasize the role of responsibility and ethics

in driving confidence and trust.

Investment Community is Key in Driving Corporate

Work in recent years by a committed community of institutional
investors to consider ESG issues in their investment decisions

through the UN
backed Principles for Responsible Investment

has played a critical role in strengthening the business
proposition of the Global Compact. In 2008, a number of
campaigns were undertaken by

now comprised of 470
signatories representing $18 trillion in assets
under management

to encourage thousands of businesses to either join or improve
performance in the Global Compact, emphasizing the important
linkages between the investment community and corporate

Efforts by governments in 2008 to encourage business to
implement the Global Compact helped bring increased attention
and scale to corporate responsibility, including in China, Denmark,
Ghana, Norway and Sweden.

One such example was the adoption of a law in Denmark requiring
the country’s publicly
listed companies, state
owned companies
and institutional investors to include ESG information

in their annual financial reports.

Governments are Active…kind of


Incorporate ESG issues into investment analysis and
making processes.


Be active owners and incorporate ESG issues into our
ownership policies and practices.


Seek appropriate disclosure on ESG issues by the
entities in which we invest.


Promote acceptance and implementation of the
Principles within the investment industry.


Work together to enhance our effectiveness in
implementing the Principles.


Report on our activities and progress towards
implementing the Principles.

The Credit Suisse Social Awareness
Index has outperformed other indices

Index Risk/Return Profile

Compounded Annual Return from 14

March 2003 to 31

March 2008

Annualised realized volatility from from 14

March 2003 to 31

March 2008

Source: Bloomberg

CEO Water Mandate

Launched by the UN Secretary
General in July
2007, the Global Compact’s CEO Water Mandate

is focused on developing corporate strategies
and solutions to contribute positively to global

water issues. The global water crisis is expected
to intensify in coming years as a result of a

number of factors, including climate change,
population growth and urbanization.

The Mandate is a call
action to business

everywhere, and provides a strategic
management framework covering six areas:

• direct operations;

• supply chain and watershed management;

• collective action;

• public policy;

• community engagement; and

• transparency.

Sustainable Business =

Term Success

Competitive advantages

Regulatory foresight

Potentially higher market valuation

Deal with global issues
and cooperation