Is SRI Screening a Drag on Returns?

David G. CreightonPresident and CEO

Cordiant Capital Inc.

TBLI 2007 EuropeNovember 15 & 16

Paris

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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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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