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May 30, 2000
Innovest Helps Dutch Bank Launch Environmental Fund
The Sustainable World Fund launched in Holland is supported by Innovest's global experience in
environmental performance research.
SocialFunds.com --
At the most recent World Economic Forum in Davos, Switzerland, the majority of corporate leaders
surveyed projected that the environment would be the number-one issue for investors over the next
several years. A new fund launched earlier this month in the Netherlands was designed to respond to
that growing global concern, and to reap the financial advantage of companies with superior
environmental performance.
 The Sustainable World Fund was launched by ABN-AMRO, a
leading international bank based in Amsterdam with operations in 76 countries and territories. The
$100 million fund combines ABN-AMRO's stock-selection expertise with the specialized environmental
research methodology of Innovest Strategic Value Advisors, a New York-based investment advisory
firm with offices in London and Toronto.
"By combining ABN-AMRO's world-class asset
management expertise with Innovest's cutting-edge investment research, ABN-AMRO should be able to
provide clients with a competitive edge that is almost certain to increase over time", said
Innovest Chairman Jim Martin. Martin was formerly Chief Investment Officer with TIAA-CREF, North
America's largest pension fund.
Founded in 1995 by Dr. Matthew Kiernan, Innovest is an
internationally recognized pioneer in the rapidly-growing field of environmental finance, and
comprises a rare assemblage of financial experts. In addition to Jim Martin, Innovest's directors
include former executives from Citibank, Chemical Bank, the former Chancellor of the Exchequer in
the U.K.,, and Arthur Lipper III, co-founder of one of Wall Street's leading investment analysis
firms.
Innovest's proprietary EcoValue '21 investment research platform was developed to
help investors uncover and capture hidden value potential in major companies. The EcoValue '21
global company database analyzes the "eco-efficiency" of over 850 companies, or their ability to
maximize shareholder value while minimizing the financial and business risks from any adverse
impacts on the environment.
Environmental data compiled for the EcoValue '21 platform
include emissions of harmful substances, hazardous waste disposal, and whether products can be
easily recycled. Innovest uses information found in publicly-disclosed company data and reports on
file with regulatory agencies, but also relies heavily on talking directly to companies.
A
growing demand for "eco-efficiency" recognizes the link between environmental performance and
foresighted management quality, and ultimately a company's long-term financial performance. The
EcoValue '21 platform is already being used by some of the largest institutional investors in both
the Unites States and Europe, as well as by a number of Fortune Global 500 companies.
For
instance, Dreyfus Corporation, a subsidiary of Mellon Bank managing more than $130 billion in
assets, offers an Eco-Enhanced Index strategy to institutional investors based on Innovest's
research. Their Eco-Enhanced portfolio includes companies in the S&P 500, but weights peer
companies based on their environmental performance to maximize long term financial performance.
Back in the Netherlands, The Sustainable World Fund is an important entry into the growing
field of socially responsible or "green" investments, which already comprise 1.25 percent of all
investments. There are two "sustainable" banks, ASN Bank and Triodos Bank, which offer sustainable
funds in addition to all their other green financial products, and new tax laws stand to give tax
advantages to sustainable investors.
ABN-AMRO is hopeful they will introduce the
Sustainable World Fund to other European jurisdictions in the coming months as well. "Innovest
provides a high level of quantitative rigor and research intensity, which we feel will be critical
to the fund's performance and success," said Jaap van der Geest, the fund manager.
ABN-AMRO's Sustainable World Fund brings Innovest's analytical methods and global environmental
research experience to European investors eager to invest in a sustainable future. The new fund
illustrates how corporate sustainability, a company's ability to integrate environmental and social
considerations with financial ones, is integrally linked to the profitability and competitiveness
of global companies.
©
SRI World Group, Inc. All Rights Reserved.
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