SUSTAINABILITY REPORT 2015 - Edmond de Rothschild Group · SUSTAINABILITY REPORT 2015 ... This report is published by the Edmond de Rothschild Group, ... their training and supporting

SUSTAINABILITY REPORT 2015Cultivating resilience to contribute to a changing world

4

REPORTING SCOPEThis report is published by the Edmond de Rothschild Group, which has its headquarters in Geneva (Switzerland). It covers all the activities of the Group and the entities that belong to Edmond de Rothschild Holding S.A, as presented in the finan-cial report of the holding company, with the exception of its two partners in Brazil (BBM Investimentos) and Japan (Nikko Cordial). In each section, we give the exact scope of the data included, depending on its availability.G4-3/G4-5/G4-7/G4-17

This second Sustainability Report for the Edmond de Rothschild Group contains the quantitative and qualitative information necessary to understanding the Group’s material sustainability issues for 2015. The report is published annually.G4-28/G4-29/G4-30

REPORTING FRAMEWORKThe Edmond de Rothschild Group has decided to prepare this report and publish the Group’s results in accordance with the Global Reporting Initiative guidelines, version G4 (GRI-G4). This decision has been taken so that data can be compared, and to improve clarity for all stakeholders when reading the results. It is also a way for the Group to ensure the reliability of its approach to sustainability reporting.

The Group selected the GRI-G4 Core reporting option. You will find all references to the GRI-G4 indicators and the cor-responding pages in the GRI Content Index on pages 72-73.G4-32a / G4-32b

For the analysis and publication of its sustainability indicators, the Group presents its results as outlined below. Each parent entity consolidates the data of the various sites associated with it, as follows:

Parent companies Entities consolidated by the parent company

Edmond de Rothschild (Suisse) S.A.

Geneva, Lausanne, Lugano, Fribourg, Bahamas, United Arab Emirates, Guernsey, Hong Kong*, Monaco, United Kingdom, Uruguay and Zurich

Edmond de Rothschild (France)

Germany, Chile, China, Spain*, France (Paris and the provinces), Hong Kong*, Israel* and Italy

Edmond de Rothschild (Europe)

Belgium, Spain*, Israel*, Luxembourg, Portugal

* For countries associated with two different parent entities, environmental impact was attributed according to the square metres occupied by the entities concerned (for environmental data).

The Edmond de Rothschild Group opened two new offices in 2015 - one in Zurich, Switzerland and a second in Beijing, China. G4-13

In the report, when data are not available for the parent entity as a whole with its overseas subsidiaries and branches, the information is provided by country according to the availabi-lity of the data in question. G4-6 / G4-23

RELEVANT ASPECTS AND INVOLVEMENT OF STAKEHOLDERSThe Group used its 2014 materiality exercise to select and prioritise the relevant items for publication (for further details, see pages 12 to 15 of the 2014 sustainability report). For 2015, the content of each section was defined according to the Group's operations in 2015 but also the most important issues in our sector, both in terms of current events or the Group's exchanges with its stakeholders. Each section of the report then outlines the context (internal and external) in which these issues are managed, giving the most objective and transparent view possible, by publishing a significant number of indicators.

We consider all our sustainability indicators to apply to all of our entities and we regularly work to extend the scope covered by our business ethics and compliance, social, envi-ronmental and societal indicators. Responsible and sustai-nable investment indicators are not country-specific, but are classified according to our business lines: Asset Management, Private Equity and Private Banking.G4-18b/G4-20

DATA REVIEWThe Edmond de Rothschild Group hired PricewaterhouseCoopers, a member of the international PwC network, to review the data published: their limited assurance report on a selection of key performance indicators can be found on page 74 of this document. These indicators are marked in the report using the following icon: . G4-32c

PwC also acts as external auditor for Edmond de Rothschild (Suisse) S.A. and as a statutory auditor for Edmond de Rothschild (France).

The PwC auditors acted as independent auditors. They were selected based on the work done in the last three years on the report of Edmond de Rothschild (France) in line with the “Grenelle II” legislation and were mandated by the Edmond de Rothschild Group to review the Group's sustainability data for 2015. G4-33c/33d

Every year, the audit is performed at a different site – in addition to the three main entities – to ensure the robustness of the data collection and validation process. In 2015, the review took place at Group level, followed by the Group’s three main entities in Geneva, Paris and Luxembourg, and, in addition, the Milan site. In performing this review, the external auditors reviewed data collection protocols, performed a documentary review and checked collection tools and the data entered. G4-33a/33b

AVAILABILITY AND CONTACTThis document is available in French and English, and an electronic, online and paper format. The Edmond de Rothschild Group has taken the decision to only publish limited copies of the paper version of this report, and encourages you to read the electronic version, which can be found on our website: http://www.edmond-de-rothschild.com/site/France/en/sustainable-development/presentation.

For more details on the information included in this report, or if you have any comments or suggestions to make, you may contact:

Kate Cacciatore - Sustainability Department - Edmond de Rothschild - 18, rue de Hesse - 1204 Geneva - Switzerland G4-31

5 EDMOND DE ROTHSCHILD

TABLE OF CONTENT

7

9

21

27

37

57

63

67

MESSAGE FROM BENJAMIN AND ARIANE DE ROTHSCHILD

THE EDMOND DE ROTHSCHILD GROUP AT A GLANCE

ETHICAL AND RESPONSIBLE BEHAVIOUR

OUR COMMITMENT TO OUR EMPLOYEES

INNOVATION IN SUSTAINABLE AND RESPONSIBLE INVESTMENT

MANAGEMENT OF OUR ENVIRONMENTAL IMPACT

OUR COMMITMENT FOR A SUSTAINABLE SOCIETY

THE EDMOND DE ROTHSCHILD FOUNDATIONS

OUR SUSTAINABILITY STRATEGY

ENGAGING WITH OUR STAKEHOLDERS

GOVERNANCE WITHIN THE EDMOND DE ROTHSCHILD GROUP

12

16

18

“Resilience is not just a matter of security.

Being resilient is being an actor, not a spectator.

Being resilient, is looking ahead and shaping the future, not just commenting it.

Being resilient is showing powerful determination, leadership and creativity.

You cannot resist without values. You cannot build in a sustainable way without the ability to anticipate. And you cannot succeed in the long run if you are not inclusive.

Resilience has always been at the core of the Rothschild's family. The concept of resilience has a very deep resonance for us. It is more than just a way of being; it is actually encoded in our DNA, as illustrated by the motto of the family: concordia, industria, integritas; Living with one's time, striving for progress, and remaining faithful to your values.”

Ariane de Rothschild President of the Edmond de Rothschild Group’s Executive Committee Opening Speech at the Edmond de Rothschild Herzliya Conference, June 8th 2016G4-1


In 2015, the international community reached two major milestones, adopting the United Nations 2030 Agenda for Sustainable Development in September in New York, and then the Paris Agreement at the end of the 21st International Conference on Climate Change (COP21) in December. These commitments were reached only after intense negotiations, but their unanimity attests to an irreversible realisation of the situation and to a sense of urgency: the future of our planet faces major environmental, social and governance challenges. It is essential to address them without waiting any longer.

To respond to these challenges, we must collectively rally our intellects, energies and good will. It is not a question of project size, but rather of being determined to work every day towards creating the sustainable development conditions necessary to our societies’ progress. Both New York and Paris conferences offered a reminder of just how important private sector contributions are for building the world of tomorrow.

The Edmond de Rothschild Group has always believed that companies have a leading role to play in the search for real solutions in the face of rising global challenges. The financial sector, which feeds the real economy, must be a trailblazer in the development of these solutions. They must aim to develop the world harmoniously for future generations.

In an era shaken by the temptation to cede to short-term interests, our family business feels particularly invested in embracing this pioneering mission, because long-term commitment has always been ingrained in our identity. Throughout our history, our sense of social responsibility has guided our actions. It is founded on ethics, which are at the heart of our values.

With regards to investments, our Group is convinced that taking environmental, social and governance (ESG) criteria into account is essential not only for risk management, but also for value creation. Our expertise in listed equities and fixed income funds and in sustainable and responsible investment (SRI) has long been recognised. We are continuing to extend the reach of these skills across our asset management business. In 2015, we formalised our more recent commitments by signing the Montreal Carbon Pledge. From now on, we will publish the carbon footprint of our investment portfolios each year, progressively widening the scope. With its private equity funds, Edmond de Rothschild also promotes innovative financing for soil remediation and sustainable agroforestry. These strategies show the effectiveness of public-private partnerships, which are sure to play a critical role in financing sustainable development.

Offering impactful projects to our clients to create sustainable performance is the driving force at the heart of our responsible strategy. Sustainability is also a pillar of our Human Resources strategy. By emphasising the diversity of our employees, promoting their training and supporting them in their development, we want to strengthen their commitment and their ability to share inno-vations within our company and in their daily lives, as only people will be able to create, nurture and benefit from the opportunities offered by the major changes of our time.

Benjamin and Ariane de Rothschild

MESSAGE FROM ARIANE AND BENJAMIN DE ROTHSCHILD

G4-1

This report also outlines our progress and commitments regarding the Principles of the United Nations Global Compact, of which the Edmond de Rothschild Group has been a signatory since 2011.G4-15


EDMOND DE ROTHSCHILD: UNIQUE AMONG BANKSThe Edmond de Rothschild Group is uniquely positioned in the world of fi nance. We are fully in tune with the new global paradigm but, at the same time, we cultivate values that have fallen by the wayside at many other banks. The family tradition gives the Group an acute sense of what the “long term” means, as refl ected in the way we manage clients’ assets: creativity does not preclude cautiousness; and while our business may break new ground, risk is always well managed.

We have strong positions in Private Banking and Asset Management – our two core businesses – and we also operate in Corporate Finance, Private Equity and Institutional & Fund Services.

THE EDMOND DE ROTHSCHILD GROUP TODAYWe provide a comprehensive service for an international client base consisting of wealthy families, entrepreneurs and major institutions.

OUR LINES OF BUSINESS » Private Banking

» Corporate Finance

» Asset Management

» Private Equity

» Institutional & Fund ServicesG4-4

OUR STRENGTHS » The stability and solidity of an independent financial

group

» Unsurpassed attention to individual client needs com-bined with global expertise

» Services tailored to the latest economic developments – the result of in-depth, proactive analysis

» Access to a comprehensive range of financial products and services

THE EDMOND DE ROTHSCHILD GROUP AT A GLANCE

163 bnCHF in assets

(150 bn euros)

48 %Private Banking

78 bn CHF in assets (72 bn euros)

52 %Asset Management

85 bn CHF in assets(78 bn euros)

6 Asset Management hubs (Frankfurt, Geneva, Hong Kong, London,

Luxembourg, Paris)

23.8 %solvency ratio*

33offices in 19 countries

Switzerland | France | Luxembourg | Bahamas Belgium | Brazil** | Chile | China | Germany

Guernsey | Hong Kong | Israel | Italy | Japan** Monaco | Portugal | Spain | United Arab Emirates

United Kingdom | Uruguay2,800employees

G4-9

* FINMA ratio ** Partnerships

G4-6/ G4-8

10

Companies

States

Infrastructures

Property

etc.

The synergies between our different lines of business enable us to provide global financial solutions which create value for everyone.

OUR ACTIVITIES IN THE VALUE CHAIN

Maintaining and increasing the

capital invested

SME growth Job creation Improvement in companies’ ESG*

practices

Development of life sciences

Investment in infrastructure

Economic development in developed and

emerging countries

Institutional investors

Other banks and financial institutions

Semi-institutional investors

Development Financial Institutions

Investments listed on the stock market

Unlisted investments

Institutional and Funds Services

Securities holding

Asset Management

Investment

Private Equity

Consultancy & Investment

Private Banking

Consultancy & Investment

Corporate Finance

Consultancy

Individual private clients and entrepreneurs

Family Offices

Semi-institutional investors

OUR CLIENTS OUR ACTIVITIES FINANCIAL MARKETS AND INVESTMENTS

VALUE CREATION FOR OUR CLIENTS, THE REAL ECONOMY AND SOCIETY

REAL ECONOMY

* Environnement, Social, Gouvernance

G4-8 / G4-12


“CONCORDIA, INTEGRITAS, INDUSTRIA” – The values that drive us.

The motto of the Rothschild family guides our commitment to our clients and all our stakeholders on a daily basis.

« CONCORDIA » « INTEGRITAS » « INDUSTRIA »

Building relationships based on trust Guaranteeing the values of ethics, transparency and responsibility

Building and preserving wealth and leaving a better world behind us

» Expressing the Group’s long-term culture and entrepreneurial passion by promoting its model of indepen-dence and stability.

» Building a long-term relationship with staff, by encouraging their individual skills and collective intel-ligence and by ensuring that the talents and contributions of each individual are fairly acknowledged.

» Sharing the values of sustainabi-lity with our clients, respecting the diversity of their profi les and expectations.

» Securing the long-term future of the group’s activities while respec-ting the principles of governance, risk management, competition, responsible communication and marketing, and strategic transpa-rency and integrity.

» Raising employee awareness of the environmental and societal impact of our activities.

» Reporting on our in-house initia-tives to promote sustainability.

» Reinforcing our fi nancial expertise by integrating the evaluation of environmental, social and gover-nance criteria.

» Promoting a responsible investment product and services proposition that directs investments to projects that are compatible with sustai-nable growth.

» Demonstrating a new economic and societal value proposition.

G4-56

OUR VALUES

12

Where do we want to be in 2020? How do we want to contribute to the change in the economic paradigm that's under way? How can we continue to integrate sustainability in our practices and activities? How can our most significant sustainability issues generate value?

These are the questions that guide our strategic and operational decision-making. Sustainability issues and values have always been present within our Group, as they are very important for our shareholders. Through the formalization of the sus-tainability strategy in 2014 and the setting of specific objectives for 2020 in 2015, the Group wants to concretely demonstrate its commitment in this area.

At the same time, through its pillar on innovation for sustainable and responsible investment, the Group demonstrates its strong desire to actively contribute to the transition to a sustainable economy (see diagram).

HOW THE GROUP INTEGRATES SUSTAINABILITY IN ITS DAY-TO-DAY ACTIVITIESThe Edmond de Rothschild Group is strongly committed to contributing to societal issues in the world around it. It is in this spirit that the Group has demonstrated its capacity to anticipate trends and needs, find innovative solutions to current pro-blems, and turn the challenges it faces into real opportunities. Thus, the Group's offering includes unique products on topics that are aligned with the structural changes taking place in the economy and with sustainable development, such as:

» infrastructure (see page 44), including in the fields of renewable energy and green infrastructure,

» real estate (see page 45), helping to improve the energy efficiency of buildings owned,

» big data, benefiting from the “Smart Cities” market, as well as other trends,

» agroforestry (see page 52),

» soil remediation (page 52),

» health and biotechnology (page 53),

» and economic development in Africa (page 53).G4-2

OUR SUSTAINABILITY STRATEGY

The transition to a sustainable economyCompany performance depends increasingly on the ability to integrate Sustainability into business models and strategies.

» Heavy industrialisation

» Resource intensive

» Activities through silos

» Growth by volume

» Linear economy

» Shareholder focus

» Low cost

» Dematerialisation

» Resource efficiency

» Sharing economy

» Innovation-driven

» Circular economy

» Stakeholder focus

» More with less

TRADITIONAL ECONOMY SUSTAINABLE ECONOMY


DEPLOYMENT OF OUR SUSTAINABILITY STRATEGYIn 2014, we conducted a materiality review, supported by the independent non-profit organisation, BSR - Business for Social Responsibility*. 14 issues were identified as being relevant to our sector and priorities for our Group. Together they make up the three material pillars of our sustainability strategy. Following this, six issues were added, given their importance to the culture and values of our Group. These were grouped into two additional pillars.

Stakeholder engagement appears in our fifth pillar, but it is also a material issue that underpins the strategy as a whole (for more information, see pp. 16 and 63).

In 2015, after the Paris Agreement on Climate Change, we added a dedicated issue for “carbon risk management and the energy transition,” highlighting the critical importance of this subject (see pp. 46-47 for more details on our activities in this area).G4-EC2

In 2015, for each of these pillars, we set measurable strategic objectives for the Group, with a deadline of 2020. These objectives take into consideration the context in which the Group is evolving, its strategic priorities, and its current situation. Some of them will be defined in more detail as time goes by. The roadmap for operational monitoring of the strategy will be aligned with these new objectives in 2016, then updated annually according to developments in the internal and external context.

In each section of this report, you will find the key issues for each pillar, our Group’s objectives, and the consolidated indicators for 2015 (and, whenever possible, our progress compared with 2014).

In 2015, substantial effort was made to improve the quality of our indicators, in terms of:

» reporting scope, which has been expanded for our social and environmental indicators** ;

» data reliability, with a change in the reporting tool for our social indicators and a review of the environmental data collection protocol** ;

» number of indicators, with new indicators for responsible and sustainable investment**.

G4-18a/ G4-18b / G4-23 / G4-27

#FOCUS

Our contribution to the United Nations Sustainable Development Goals (SDGs) As a signatory to the United Nations Global Compact, we wanted to identify how we can contribute to the Sustainable Development Goals set out by the UN in September 2015. When our activities contribute signi-ficantly to the achievement of one or more of those goals, you will see the associated logo(s) (see the list of the UN's 17 Sustainable Development Goals below).

From now on, we will include these goals in our strate-gic reflections, specifically in our Asset Management and Private Equity activities.

For more information on the United Nations Sustainable Development Goals, see: http://www.un.org/sustainabledevelopment.

* To find out more about this exercise, read page 13 of the 2014 sustainability report. – ** See pp. 30, 39, 43, 46 and 58 for more information.

You will find the reference to the UN Sustainable Development Goals (SDGs) with these icons: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

14

OUR 2020 OBJECTIVES AND OUR PROGRESS IN 2015


OUR ENGAGEMENT TO OUR EMPLOYEES


Our

mat

eria

l is

sues

» Corporate governance » Compliance with regulations » Ethical behaviour » Risk management » Transparency and reporting

» Talent management » Diversity and equal

opportunities » Employee engagement

» Carbon risk management and energy transition » Integration of ESG criteria into financial analysis » Positive selection investment strategies » Company engagement and proxy voting » Impact investing » Thematic investing integrating ESG criteria

Our

am

bit

ions

fo

r 20

20

» Defining a unique reference framework that guides our behaviour in line with our values

» Reconciling risk management with innovation

» Be an employer of choice to attract and retain the best talent and enable employees to give their best

» Make diversity our strength by removing barriers and promoting its advantages

» Increase sustainable investment assets under management » Be recognised as one of the leaders in sustainable investment

Our

ob

ject

ives

fo

r 20

20

» Train 100% of employees on the Group Code of Ethics

» Create a common library of the Group’s ethics and compliance training courses to increase employees' expertise and ability to manage risk

» Facilitate employees' access to directives that are relevant to their activity and to the support required for their application

» Create a formalised framework for deploying the Group's strategic objectives

» Develop a managerial and leadership culture based on the Group's values

» Establish mechanisms to evaluate the drivers of employee engagement to contribute to the Group’s performance

» Gradually increase the percentage of women in senior management (reference year 2014: 24%)

» Maintain gender parity in the workforce (reference year 2014: 44% women)

» Maintain our cultural diversity (reference year 2014: 37 nationalities represented)

Asset Management » Adopt a Sustainable Investment Strategy 2017-2020 for all

types of investment expertise at Edmond de Rothschild Asset Management

» Define a Sustainable Investment Action Plan and an Action Plan on management of climate risk for the 2017-2020 period

» Establish a formalised, traceable ESG integration process for European equities management, enhancing our existing approach to shareholder activism and stepping up internal ESG research efforts

» Extend the scope of ESG analysis to all equity, corporate and sovereign debt funds of Edmond de Rothschild Asset Management (2014: 295 businesses)

» Establish formalised, traceable ESG integration processes for our strategies of infrastructure debt and direct investment in Swiss real estate

» Train 100% of internal equity and bond management teams in sustainable investment/ESG

Private Equity » Convert a new strategy to the best ESG practices each year,

with 100% of the strategies covered by 2020 » Measure the impact across all impact investment funds and

mainstream funds which apply ESG integration methodologies, by 2017

» Increase the assets in our impact investing funds by 20% per year by 2020

Our

sit

uati

on

in 2

015

› 5,300 hours of training on ethics and compliance

› 1,500 employees trained*

» 87.9% of our employees have taken part in the annual performance review (+3% compared to 2014)

» 8% of our employees were promoted (same result as in 2014)

» 72 employees benefited from internal mobility in 2015 (same result as in 2014)

» 91% of our employees have taken at least one training course (+22%)

» 24.8% of senior managers are women (+5%)

» 42 nationalities are represented

» 15% of the assets under management at Edmond de Rothschild Asset Management (France) are covered by sustainable investment strategies (12.7% in 2014)

» 14% of requests for proposals to which Edmond de Rothschild Asset Management has responded to include a “sustainable” dimension (31% in 2014)

» 77.7% of the assets managed by Edmond de Rothschild

* We are not able to show the evolution from 2014 because the scope of the data has changed.G4-2 / G4-19 / G4-DMA


MANAGEMENT OF OUR ENVIRONMENTAL IMPACT OUR COMMITMENT TO A SUSTAINABLE SOCIETY

Our

imp

ort

ant

issu

es

» CO2 emissions from our energy consumption » CO2 emissions from employee travel » Paper consumption » Waste management

» Stakeholder engagement » Local community engagement » Philanthropic activities

Our

am

bit

ions

fo

r 20

20

» Reduce our environmental footprint in key areas:

› CO2 emissions

› Paper

› Waste management

» Deepen dialogue and synergies with our stakeholders » Participate in innovative philanthropic programmes

Our

ob

ject

ives

fo

r 20

20

» Reduce the carbon footprint per employee by 15% (reference year 2015: 9.2 tonnes of carbon equivalent/employee)

» Reduce the energy consumption per employee by 10% (reference year 2014: 6.8 MWh/employee)

» Offset our CO2 emissions for scopes 1 and 2 of the Greenhouse Gas Protocol

» Reduce paper consumption per employee by 25% (reference year 2014: 87kg/employee)

» Have 100% recycled or FSC/PEFC certified paper (reference year 2014: 85%)

» Review the mapping of the Group's main stakeholders and the list of stakeholder engagement activities every year

» Identify and participate in the most relevant initiatives and events linked to sustainable investment

» Implement a process of evaluation of and engagement with suppliers as part of our Responsible Purchasing Policy

» Implement the Community Engagement Charter and encourage sites to implement philanthropic programmes

Our

sit

uati

on

in 2

015 » 9.2 tonnes of CO2 equivalent per employee

» an average of 7,842 km travelled by our employees (+7%)

» 6,711 kWh of energy consumed per employee (-1%) » an average of 73 kg of paper consumed by our employees

(-16%) » 94% of paper consumed is FSC/PEFC certified or recycled

(+11%)

» Active member of 10 sustainable investment initiatives

» 61 employees involved in philanthropic programmes » 48 people and11companies have benefited from these

programmes

G4-2 / G4-19

The following symbol identifies indicators that have been verified by PricewaterhouseCoopers: . Their limited assurance report on a selection of key performance indicators can be found on page 74.

The following issues are relevant by virtue of their impact on our organisation as well as the significant involvement of our external stakeholders.

» Compliance with regulations (government and regulatory bodies),

» All issues in the “Innovation in sustainable and responsible investment” pillar (companies invested in, business partners),

» Stakeholder engagement (all of our stakeholders),

» Local community engagement (suppliers, banking and financial associations, United Nations and International Organisations, academic community),

» Philanthropic activities (beneficiary companies of support programmes, society).

The impacts and implications of these issues on the Group and/or stakeholders are detailed in the different sections of this report.G4-21

16

* AccountAbility: Renowned global organisation which proposes innovative solutions to the most critical corporate responsibility and sustainability challenges.

The Edmond de Rothschild Group wishes to support the transition towards a sustainable economy and world by encouraging collaboration between stakeholders from the financial sector and other stakeholders, notably by contributing to the following areas:

» the stability and longevity of the financial sector through ethical behaviour and solid, transparent reporting and financial products;

» solving social and environmental problems by developing innovative financial solutions which create economic value;

» anticipating and creating a society which promotes respect for people and the environment, in collaboration with the Edmond de Rothschild Foundations.

G4-27

In 2015, the Group's Sustainability Department worked to formalise the way it identifies and prioritises its stakeholders, invol-ving the departments and employees which interact with them in the course of their day-to-day work.

Based on a methodology proposed by AccountAbility*, we first identified the most important and relevant stakeholder categories for the Group's operations and strategy. We then prioritised these stakeholder categories according to two main criteria:

» the degree of influence of the stakeholder category on the Edmond de Rothschild Group ;

» the impact of the Edmond de Rothschild Group on the stakeholder category identified.G4-25

Following several months of internal consultation, the following matrix was developed.G4-24

Impa

ct o

f EdR

Gro

up o

n its

stak

ehol

ders

3 Beneficiaries of sponsoring programmesCompanies in which the Group investsThe Family's non-financial activities

EmployeesShareholdersBusiness partnersPrivate clients

2Suppliers of goodsCompanies benefiting from philanthropic programmes

Services suppliers/subcontractorsFormer employeesAcademic communityBanks

Trade unions and employee representativesInstitutional clients Financial intermediariesConsultants

1Market counterpartiesCommunity associationsOpinion leaders

Banking/financial associations Industry associationsFuture generationsUnited Nations/international organisations

CompetitorsGovernment and regulatory bodiesTraditional mediaSocial networks

1 2 3

Influence of stakeholders on EdR Group and its performance, reputation, etc.

For each stakeholder category, we now have visibility on their main subjects of interest and the communication and engage-ment methods used to interact with them.G4-26 / G4-27

This work will enable us to develop a detailed list of specific stakeholders by category and perform a deeper analysis of the potential risks and opportunities resulting from the Group's engagement with them. This tool will be used both to support our involvement with stakeholders on sustainability issues and, more generally, to gain visibility on the value creation resulting from our interactions with actors in the economic ecosystem of which the Group is part.G4–18b

ENGAGING WITH OUR STAKEHOLDERS


18

The Edmond de Rothschild Holding S.A. Board of Directors (“Board”) is the body responsible for the high-level management, supervision and control of the Group. In addition to its non-transferable and inalienable roles, pursuant to the law, the Board also makes all useful decisions as regards setting objectives and methods of applying the Group’s general policy.

The authority and tasks as well as the organisation of the Board and its committees - to which certain tasks and powers have been delegated (see hereinafter) - are set out in the “Company, Group and consolidated Group surveillance Regulations” approved by the FINMA.

The Board has set up three committees. Their main tasks and duties are:

Audit and Risk CommitteeThe Risk and Audit Committee assesses how well the internal control system of the company and the Group's entities is operating, factoring in risk management as well as observation of legal, regulatory, and internal standards applicable to the Group. Its main missions are to:

» monitor and evaluate all financial closing;

» monitor and evaluate internal control in terms of preparing accounts and financial reports;

» monitor and evaluate the effectiveness of the Group’s external auditors and their cooperation with the Internal Audit;

» evaluate internal control outside the area of preparing financial reports and internal review;

» review the Internal Audit charter and the planning of its missions.

Appointments and Remuneration CommitteeThe Appointments and Remuneration Committee assists the Board of Directors in defining and implementing the Group's policy on remuneration and appointments, drafting the principles for selecting members of Management, and the succession plan. Its main missions are to:

» ensure that the Group is offering its employees benefits in line with market conditions to attract and retain people with the skills and qualities necessary to ensure the Group’s long-term competitiveness and success;

» examine and submit to the Board the Group’s appointment and remuneration policy as proposed by the Executive Committee. To do this, it ensures that the different modes of appointment and remuneration in the Group companies lead to a harmonised result taking into account local factors;

» approve the overall budget for salaries and variable remuneration for Group employees proposed by the Executive Committee.

Strategy CommitteeThe Committee's mission is to monitor the Executive Committee's implementation of strategic decisions adopted by the Board of Directors.

The Board has set up an Executive Committee, which is the Group’s operational management and oversight body. The main tasks and responsibilities of the Executive Committee are outlined below:

» manage the Group and its holdings in companies, ensuring permanent adherence on a consolidated basis to applicable laws, by-laws, enforcement orders, circulars and directives issued by the FINMA, BNS and the professional organisations, including the ASB, as well as the rules of conduct, regulations and circulars of the Group, including the decisions and direc-tives of its bodies. To do this, it sends to the Group companies, without harming their legal independence and according to the laws and customs which govern them, the directives and recommendations necessary for the smooth running of the Group, harmonisation and rationalisation of its activities and its organisation, protecting its financial longevity, its reputa-tion, its image and its name and, more generally, the development of a Group dynamic and spirit;

» ensure the decisions taken by the Board are properly implemented;

» establish, monitor and regularly validate the Group’s internal control system, and suggest all necessary measures in this regard;

» introduce a Risk Control function and a Compliance function, the organisation, hierarchy, tasks, responsibilities and repor-ting obligations of which are outlined in the charters approved by the Board. These functions, each of which report to a member of the Executive Committee, are included in the Group’s overall organisation and are independent of the Group’s income-generating activities;

» implement appropriate internal systems and processes to ensure compliance within the Group;

» establish, prepare and submit to the Audit Committee the Group’s yearly and interim accounts, in accordance with legal and regulatory prescriptions.

GOVERNANCE WITHIN THE EDMOND DE ROTHSCHILD GROUP


The Executive Committee has also established the following three committees:

» the Group’s Assets and Liabilities Management Committee, whose main responsibility is to define the rules on mana-ging equity, and risks relating to interest rates, liquidities, and foreign exchange for the Group and to monitor their implementation;

» the Group's Business Committee (since February 2015), whose main responsibilities are to coordinate and implement the Group's business strategy by country and by core business, in compliance with the business strategy reviewed and appro-ved by the Group's Executive Committee, and to track the business performance (collection, revenues, margins, etc.) of the core businesses and sales teams;

» the Group's Compliance and Reputation Committee whose main responsibility is to ensure compliance with laws and regulations generally, and to assess the compliance risk and the legal and regulatory reputational risk for the Group.

The Board put in place an Internal Audit channel independent of the activities and functions it controls. It is directly subor-dinate to the Board and its Audit Committee, reporting to them directly. The Head of the Internal Audit department is appointed by the Board, after notice by the Audit Committee. For its day-to-day management, the Internal Audit channel is linked to the Executive Committee. It keeps the Audit Committee and the Executive Committee notified of its relevant recom-mendations at Group level and the quality of their implementation, and notifies them without delay of any major malfunction. The remuneration system for Internal Audit employees does not include components that could generate conflicts of interest.

The Group’s governance also takes place via the participation of certain members of the Executive Committee and the Board in the boards of directors/supervisory boards of the Group’s main entities.G4-34 / G4-35 / G4-36 / G4-38 / G4-42 / G4-45 / G4-46 /G4-47

GOVERNANCE OF SUSTAINABILITY WITHIN THE GROUP2014 was the year in which the Edmond de Rothschild Group's sustainability strategy was formalised, having been formally approved by the Executive Committee in May of that year. The ad hoc Sustainability Committee had achieved its objectives and was thus dismantled.

Sustainability-related decisions are now taken directly at the monthly meetings of the Group’s Executive Committee, which has approved the sustainability objectives for 2020.G4-34 / G4-35 / G4-36 / G4-42

GOVERNANCE BODIES OF THE EDMOND DE ROTHSCHILD GROUP

Supervisory Board of Edmond de Rothschild

Holding S.A.

Strategy Committee

Appointments and Remuneration Committee

Audit and Risk Committee

Internal Audit

Executive Committee of the Edmond de Rothschild Group

Assets and Liabilities Management Committee

Compliance and Reputation Committee

Business Committee

MATERIAL ISSUES

» Corporate governance

» Compliance with regulations

» Ethical behaviour

» Risk management

» Transparency and reporting

OBJECTIVES FOR 2020

» Train 100% of employees on the Group Code of EthicsSituation at the end of 2015

› 5,300 hours of training on ethics and compliance

› 1,500 employees trained

» Create a common library of the Group’s ethics and compliance training courses to increase employees' expertise and ability to manage risk

» Facilitate employees' access to direc-tives that are relevant to their activity and to the support required for their application

21 ETHICAL AND RESPONSIBLE BEHAVIOUR

For our Group, ethics, integrity and transparency are intrinsically linked to our values and the strong sense of responsibility which has guided the Rothschild family in managing its affairs over the generations.

More than seven years after the start of the financial crisis which shook the global economy, the banking sector still faces three main challenges:

» banks have the responsibility to ensure the stability and sustainability of the financial sector by complying with the nume-rous regulatory reforms put in place by governments, notably members of G20;

» banks must regain public trust;

» despite the demands of a new regulatory context, banks must continue to provide the financing the world needs to deve-lop sustainably and find solutions to global issues that affect us all.

This last point seems paradoxical, as innovation and the ability to take risks need to be reconciled with a restrictive regulatory environment which has an impact on the economic model of banks and financial institutions. We believe this can be done by adopting a long-term view which takes into account the needs of the financial and societal ecosystem, rather than a short-term approach that is potentially damaging to collective well-being.

In an extremely unstable and demanding international context, which requires constant anticipation, innovation, training and adaptation, we continue to make progress while adhering to the highest ethical and governance standards.G4-2

OUR RISK MANAGEMENT APPROACHRisk management is at the heart of our approach and is a daily concern in the activity of our different entities.

Risk management within the Group is understood as identifying, measuring, evaluating and managing the risks to which the various activities and entities are exposed. The Group’s entities and their employees, at all hierarchical levels, must perform their duties in accordance with fundamental principles.

In the first place, it is a matter of strictly complying with all applicable legal, regulatory and statutory requirements, whether these are internal, professional or ethical. Therefore, the Group’s risk management policy aims to very strictly define the deve-lopment of the various activities – notably market and credit transactions – in line with the Group’s appetite for risk.

Furthermore, the Group takes care to ensure a liquid financial structure with circulating assets and also maintains heightened and detailed vigilance over operational matters relating to its asset management activity, with the greatest respect for its clients, employees, rules and legislation. The Group ensures that all the monitoring systems in place have suitable human, organisational and technical resources. In addition, the increased level of collaboration between the Group entities enables better understanding and monitoring of the concentration risk of the Group’s risk exposure as a whole.

The Edmond de Rothschild Group determines, limits and manages legal, compliance and reputational risks. Money laundering is a critical issue that our Group is committed to identifying and preventing. Dedicated processes have been implemented within each entity to identify, manage and disclose, if applicable, suspicions of money laundering, in accordance with the respective legislation for the Group's entities.

The Edmond de Rothschild Group and its entities are involved in various legal proceedings that occur within the framework of the normal exercise of their activities.

Risk management within the Group focuses on the following types of risk:

» Strategic risk

» Credit/counterparty risk

» Market risk

» Liquidity risk

› Operational risk (including information systems and third-party account management)

» Non-compliance risk

» Reputational risk

» Legal risk

The Edmond de Rothschild Holding S.A. Board of Directors defines the level of risk the Group is willing to take for each of these risk types, and quantitative limits are placed on some of them at Group level, allocated to the main operational entities. G4-2 / G4-46/ G4-57


22

OUR BUSINESS ETHICS AND COMPLIANCE CONTEXT

Training, a key part of business ethics and compliance – G4-SO4 In 2015, the training delivered in the four entities shown in the table below* reflected the requirements of our different activi-ties, applicable national legislation and our internal regulations. It is important to clarify that the number of training hours and people trained can vary from one year to the next, depending on the training programme schedule and the priority topics on which we train our employees. In 2014, for example, our three main entities had carried out a broad training campaign on the American law known as FATCA (Foreign Account Tax Compliance Act), which they did not have to repeat in 2015. For certain topics, it was also decided to limit the use of e-learning in favour of training programmes administered internally and directly adapted to the specific needs of populations. This choice of improving the quality and impact of training results in a decline in the number of people trained and in the total number of training hours followed in a single year.G4-20

In 2015, the training sessions covered the following topics:

» Fight against money laundering and financing of terrorist activities;

» Cross-border activities:

› Commercial prospecting and promoting financial products,

› Swiss Cross Border Wealth Management;

» Market abuse;

» Fiscal compliance (applicable to Private Banking):

› FATCA,

› Code of conduct on tax matters;

» MiFID I:

› Conflicts of interest,

› Managing complaints and cases of non-compliance;

» Gifts, entertaining and the fight against corruption;

» Confidentiality and data protection.

Luxembourg Geneva France** United Kingdom

2014 2015 2014 2015 2014 2015 2014 2015

Total training hours on business ethics and compliance

1,014 796 6,352 3,092 956 1,256 388 148

Total number of participants*** 664 715 1,518 2,326 717 725 372 144

Number of employees having attended at least one training session on business ethics and compliance

446 383 NA 545 555 466 117 108

* These are our three main entities in Switzerland, France, and Luxembourg, as well as our site in London, which together represent 77% of our total workforce.

** An employee may have taken part in several training sessions, which is why the number of participants is higher than the number of “employees having attended at least one training session”.

*** In the annual report of Edmond de Rothschild (France), the “ethics and compliance training” data are available for France and its subsidiaries and branches abroad (see page 56). http://www.edmond-de-rothschild.com/site/France/en/private-banking/annual-reports

Jean-Christophe PernolletMember of the Edmond de Rothschild Group’s Executive Committee, Chief Risk Officer of the Edmond de Rothschild Group

The banking landscape is still subject to immense regulatory and societal pressures. What are the implications for risk management and the balance that needs to be struck so as not to discourage innovation?

Obviously, respecting the spirit and the letter of the regulations is imperative for the Group. In concrete terms, this means that the propensity for legal and regulatory risks, set by the Board of Directors, is as low as possible, and demonstrates the Edmond de Rothschild Group's determination with regard to respecting applicable rules. For other types of risk, any action, and in some cases inaction, can generate risk; finding the right balance is certainly one of the virtually constant challenges faced by economic players, who must do their best to meet the expectations of clients, employees, shareholders, and society in the broad sense. The Group ensures that its propensity for risks is compatible with its resources and that the various stakeholders' interests are preserved.

All innovation must fit into this framework, i.e. for the benefit of the greatest number and over the long term, which clearly had not been the case for certain financial innovations, specifically in the US at the turn of the century. Our core businesses, from Private Banking to Asset Management to Private Equity, Corporate Finance, and Asset Servicing, are constantly looking to innovate to meet our clients' needs. These innovations, which can result either from individual initiatives or internal processes, are reviewed within the core businesses and then by the functions, specifically Risks and Compliance/Legal, to make sure they meet, in addition to legal and regulatory requirements, those the Group has set for itself. An ongoing and constructive dialogue between the core businesses and the control functions ensures that the Group's propensity for risks is monitored and that the capacity for innovation is preserved and encouraged.


Yves AeschlimannMember of the Edmond de Rothschild Group’s Executive Committee, Head of Compliance & Legal for Edmond de Rothschild Group

You're in the process of strengthening and harmonising the rules applicable at Group level to ensure common reference standards. Can you give us details about what happened in 2015 in this regard, and what the next projects will be for 2016 and the years to come?

The idea of a centrally organised Group is relatively recent in the historical timeline of the Edmond de Rothschild Group. As we're under the consolidated oversight of the Swiss regulator FINMA, the Group had to harmonise its structure by highlighting the common principles for all of its entities, which were previously acting relatively independently.

Thus in 2015, some common rules and processes were reinforced, in particular regarding the identification of higher-risk business relations and transactions, as well as the definition, acceptance, and monitoring of Politically Exposed Persons (PEP). These standards enable the Group to have a common approach to risks and maintain an effective consolidated view of its activities. In terms of process, substantial work was also done to make sure that each entity follows similar processes. We will continue this harmonisation work in 2016, defining common principles relative to alignment with international economic and financial sanctions on the one hand, and, on the other, cross-border activity, in accordance with the strategy defined by International Private Banking in the Edmond de Rothschild Group.

To provide a framework for these internal rules at Group level, a Code of Ethics was created in 2015. It defines the ethical principles that the Edmond de Rothschild Group is implementing in the conduct of its activities and is a com-mon basis for all of its employees. Its content was adopted by the Group's major governance bodies, and this guarantees a tone from the top that meets applicable international standards, whether they be the 40 Recommendations of the Financial Action Task Force (FATF) or the general principles issued by the Basel Committee. In 2016, the Edmond de Rothschild Group will work on the deployment of this Code.

#FOCUS

A SINGLE CODE OF ETHICS FOR THE GROUPThe Edmond de Rothschild Group's Code of Ethics, adopted at end-2015 and which entered into force in January 2016, defines the guiding ethical principles that the Group wants to see applied on various topics. It emphasises our institu-tion's strong values, such as non-discrimination, the fight against corruption, and the obligations regarding protection of clients' interests and the confidentiality and security of information. In all, it contains twenty key principles that are based on the Group's values.

This satisfies a regulatory and good governance requirement for any financial institution, in line with our commitments to our regulator, our clients, and our employees.G4-27

The Code of Ethics was communicated to all of the Group's employees, with a confirmation of receipt and approval sent back by all. This reflects the commitment of everyone to respect the values upheld by our institution. For the next few years, our aim is to make sure that, in addition to the mandatory training on regulations, 100% of employees are trained on the Code of Ethics, starting with managers and those employees on the front-line in terms of risk-taking. In addition, we will gradually create a common library at Group level of all the training sessions required for a proper understanding of the principles contained in the Code of Ethics and developed in the internal directives.G4-56 / G4-57 /G4-SO4

24

1. Foreign Account Tax Compliance Act, US regulation on tax compliance.2. The Markets in Financial Instruments Directive II, a European directive that includes a section on client protection and another on market infrastructure and transparency.3. The Alternative Investment Fund Managers Directive, a European directive that provides a harmonised regulatory and supervisory framework for alternative fund managers.4. The Capital Requirements Directive (2013/36/EU; CRD IV) and the Capital Requirements Regulation, European directive and regulation that set the requirements in terms of compensation, gover-

nance, and transparency for greater resiliency in the European banking sector.5. Undertakings for Collective Investments in Transferable Securities, a European directive that provides a harmonised regulatory and supervisory framework for UCITS managers. .

Emmanuel FiévetMember of the Edmond de Rothschild Group’s Executive Committee, CEO of Edmond de Rothschild (Suisse) S.A.Head of International Private Banking

What is the impact of regulations on your activity?

Since the crisis of 2008, the banking and financial regulatory and legislative framework has tightened considerably, pushing banks to question and revise their operational approach, and even their business model.

Automatic information exchanges, regulation of cross-border activities, FATCA(1), MiFID II(2), AIMFD(3), CRD IV/CRR(4), UCITS V(5), etc. All of these regulations, existing or future, are essentially aimed at greater transparency and protection for clients, greater risk management proficiency, and, ultimately, greater stability throughout the financial sector. The evolu-tion of the regulatory context does not in any way affect our relationship with our clients. The quality of this relationship and the level of excellence we offer in our wealth management advice and services remain our priorities.

Elizabeth HornerGeneral Counsel and Head of Legal, Risk and Compliance, Edmond de Rothschild (UK)

In the United Kingdom legislative constraints on the financial sector have been tightened again in 2015. What are the implications of these constraints for the Group’s activities and how are you responding?

The UK introduced new rules in 2015 relating to senior managers within the banking sector, which will be extended to all regulated entities (including Edmond de Rothschild UK) by 2018. The changes are intended to introduce more accounta-bility to individuals within firms, rather than collective board responsibility. Senior managers will still be approved by the regulator but for staff below that level who could cause “significant harm”, the manager will be responsible for ensuring that they are fit and proper at all times with an annual certification. Senior managers will have a statutory duty to take reasonable steps to prevent regulatory breaches in the part of the business for which they are responsible. This may result in Group employees with de facto responsibility needing to become UK regulated. We are watching to see how the banking sector deals with this issue.

In preparation for this coming into force, we have already moved to annual certification by managers of all regulated staff, and detailed job descriptions with clear responsibilities are being rolled out. We are also reviewing the training and competence programme and ensuring that managers focus on metrics such as compliance as well as pure financial results during the annual performance review, as going forward they will have a statutory responsibility for anyone they sign off as competent. There are also proposals from the regulator to extend the scope of references so that any regulatory breach would need to be reported to a new employer; the industry is pushing back but watch this space!

AN INCREASINGLY RESTRICTIVE AND COMPLEX REGULATORY ENVIRONMENT

In 2015, the regulations in the banking sector continued to increase. For example, in the United Kingdom, new provisions have been adopted that have repercussions beyond our London entity (see interview with Elizabeth Horner). However, these are not the only laws that impact the financial industry. In the last three years, the number of regulations and standards in the corporate social responsibility (CSR) and sustainability arenas have proliferated, and 2015 was an especially busy year in that sense. Many of these regulations affect the entire private sector and are, for those companies, restrictions or, conversely, opportunities. Thus CSR and sustainability are becoming ever more relevant factors of analysis for investors; this trend is accentuated by the fact that these new regulations are now directly aimed at the banking sector, emphasising its capital role in the transition to a sustainable economy. Financial institutions have the possibility to influence businesses to adopt more “responsible and sustainable” practices, but they can also make the choice to support businesses and sectors that contribute concretely and directly to a sustainable world.

At end of 2015, the Edmond de Rothschild Group made the decision to join a collaborative initiative that not only tracks the evolution of regulations and standards linked to sustainability, in the countries where we are located, but also enables us to follow and contribute to projects under discussion. G4-2 /G4-26 /G4-27/ G4-DMA FS2


Arnaud BarangerHead of Regulatory Projects, Edmond de Rothschild Asset Management

The legislative landscape in France relating to sustainability changed a great deal in 2015. What are the implications for the financial industry, and asset management in particular?

The Energy Transition for Green Growth Act (Art. 173), adopted in advance of the COP 21, set down the regulatory basis relating to sustainable development for French institutional investors. This “comply or explain” process was defined in detail for asset managers in the French Monetary and Financial Code in December 2015 (L. 533-22-1 and D. 533-16-1). Now, Environmental, Social, and Governance (ESG) issues are “hard-coded” into investment policy. The Edmond de Rothschild Group, and in particular its asset management activity, has positioned itself precisely in the spirit of this smart legislation which, while not prescriptive, does call for review and ownership of the topic by asset owners and asset managers. It has adopted this position through its sustainable and responsible investment strategy, the signature of the Montreal Carbon Pledge, and its active participation in local finance sector initiatives on this subject. This freedom of action around a clear and common objective allows the different actors to innovate (on carbon measurement, and the relevance of ESG indicators that are available or are to be integrated, for example) and develop their strategy differently (no-carbon or low-carbon portfolio, voting policy that influences the trajectory applied for the energy transition of invested companies). France's role as a forerun-ner on these sustainability issues, and the strong involvement of Edmond de Rothschild Asset Management activities on these themes - i.e. a comprehensive approach (cross-border and inclusive of multi-asset management) based on exchange with our institutional partners and clients - gives us the opportunity to have a competitive advantage internationally on an emerging issue that will grow significantly in importance in the years to come.

G4-EC2

REGULATIONS AND STANDARDS RELATING TO SUSTAINABILITY IN THE REGIONS IN WHICH WE ARE PRESENT FSB Task Force on

Climate-related Financial Disclosures

Réglementations et standards s’appliquant à l’ensemble des entreprises du secteur privé

Réglementations et standards s’appliquant particulièrement au secteur financier

Réglementations et standards en cours projet

G20/OECD Principles of Corporate Governance

Draft regulation on supply chain due diligence by importers of certain mine-rals and metals originating in conflict-affected and high-risk areas.

Guidelines on Green Bond Offering

Modern Slavery Act 2015

Guidelines for Environmental Protection in Foreign Investment and Cooperation

New directives on public procurement (environ-mental and social criteria)

Responsible Business Initiative

Proposal for the revision of the law on gender equality and equal pay

OECD Guidelines for Multinational Enterprises (respect for Human Rights and responsibility of companies along the supply chain

National Action Plan on the UN Guiding Principles on Business and Human Rights

EU Directive on disclosure of non-financial and diversity information

Draft Bill on Due Diligence Duty of Parent and Contracting Companies (environmental and social impacts)

Draft regulation for the mandatory gender pay gap reporting requirement

New Economic Regulations Act1 (information on environmental and social impacts)

UK Companies Act 2006 (information on environmental and social issues)

Act on National Commitment for the Environment (“Grenelle II Act”)

UN Guiding Principles on Business and Human Rights

Federal Act on War Material

Corporate Environmental Credit Rating Measures

Energy Transition for Green Growth Act

Financial Market Infrastructure Act

2001 2006 2010 2011 2013 2014 2015 2016

MATERIAL ISSUES

» Talent management

» Diversity and equal opportunities

» Employee engagement

OBJECTIVES FOR 2020

» Establish a formalised framework for the deployment of the Group’s strategic objectives

» Develop a managerial and leadership culture based on the Group's values

» Establish mechanisms to evaluate the drivers of employee engagement to contribute to the Group’s performanceSituation at the end of 2015:

› 8% of our employees were promoted (same result as in 2014)

› 72 employees benefited from internal mobility (same result as in 2014)

› 91% of our employees completed at least one training session (+22% compared to 2014)

› 87.9% of our employees have taken part in the annual performance review* (+3% compared to 2014)

» Gradually increase the percentage of women in senior managementReference year 2014: 24%

Situation at the end of 2015: 24.8% (+5%)

» Maintain gender diversity in the Group’s headcount Reference year 2014: 44% women

Situation at the end of 2015: 47% women*

» Maintain our cultural diversityReference year 2014: 37 nationalities represented

Situation at the end of 2015: 42 nationalities represented*

27 OUR COMMITMENT TO OUR EMPLOYEES

The Edmond de Rothschild Group is evolving in a highly competitive environment, which is becoming more complex and changing constantly, notably as a result of increasing regulation in the financial sector. The quality and commitment of our employees as well as the support of all for our values are key factors for success, and are crucial in this context.

OUR COMMITMENT TO OUR EMPLOYEES

As an employer, we have a dual responsibility: to create a stimulating working environment that ensures the well-being and fulfilment of our employees, and to create the conditions which will enable them to contribute to the company’s performance and the attainment of its objectives.

The three material issues selected for this pillar of our sustainability strategy (to find out more, see pp. 12-15), are closely linked to these responsibilities:

» attracting, developing and retaining the best talent is the essential condition for fulfilling our ambition of excellence in our various lines of business. This is a strategic priority for the Group’s Human Resources (HR) Department and the Management;

» employees who are committed, rewarded and empowered are even more innovative and perform better collectively. Creating value for our clients, our stakeholders and society at large also depends on the commitment of our employees and their support for our objectives;

» diversity, which is respected and encouraged, makes a major contribution to the well-being of our employees and the suc-cess of our Group. As a European Group with an international presence that we want to increase, our success depends on the wealth of our perspectives, whether they relate to culture, gender or age. This diversity gives us the capacity to antici-pate and respond in appropriate and innovative ways to our clients’ needs and the needs of a constantly changing world.

Emanuela BonadimanMember of the Edmond de Rothschild Group’s Executive Committee, Director of Human Resources

As Human Resources Director for an international group, how do you see the relationship between your Human Resources policy and Sustainability?

The Edmond de Rothschild Group is continuing its strategic reflexion and progress on the subject of sustainability. Our long-term vision is part of our Group's DNA, just as sustainability requires a long-term commitment. This aspect must be a reality that's lived out internally, in particular by establishing an approach to management and employee development over the long term. This is done with respect for diversity (gender, age, and culture), to offer our employees truly equal opportunities.

In 2015, we focused on the professionalisation of Human Resources processes through the deployment of a new IT tool. This tool integrates the various HR processes with the aim of facilitating their harmonised management at Group level. For example, it enables us to monitor our diversity targets on a monthly basis. Putting the emphasis on sustainability means creating a harmonious working environment that is conducive to employee fulfilment within our Group. That is how we will achieve our goal of continuous improvement in relation to working conditions, quality of dialogue with manage-ment, and team spirit. That is our social responsibility to our employees.

In what sense is the sustainability dimension of the HR policy a driver of employee performance in the service of the Group's ambitions and the products and services it offers to its Clients?

The aim of our Human Resources strategy is to promote a performance- and results-driven culture that is in harmony with the Group's values. Our employees' development, in which training is just one approach, is essential to enabling them to give their best as they face a changing and increasingly complex sector. In such a context, teamwork is one of the responses: it enhances every employee's contribution, and generates intelligent synergies that are collectively beneficial in all of the Group's functions and across all its geographic entities. Harmonising our employees' “life cycle”, managing talent, and encouraging internal mobility are all priorities.

In our increasingly competitive market, our organisation's strength hinges on our being proactive and quick to respond. The more useless barriers we eliminate, the better we will perform. The quality of our employees' development increases their level of “engagement” in their work, enabling them to make significant contributions to our overall performance. And that is how we can make a difference.

* With the exception of the annual performance review, the scope of our data published for reference year 2014 was limited to our main hubs, i.e. our entities in France, Luxembourg, and Switzerland (except Lugano and our Asset Management business in Geneva), thus covering 73% of our workforce. In 2015, we expanded the scope of certain data to the entire Group (to find out more, see page 30).

28

#FOCUS

STRATEGIC MANAGEMENT OF HUMAN RESOURCESIn 2015, the Human Resources (HR) Department carried out a review of all of its processes in order to best fulfil its two main roles:

» contributing to the Group's performance and value creation;

» and supporting employees throughout their “life cycle” within the Group.

To support this target, Human Resources are setting up a strategic management system for employee development through a tool known as HR Online. The aim of this work of integrating the various processes is also to make human resource management within the Group more agile and effective.

The project began in 2015, with the integration of performance evaluations, a process that is of capital importance for HR and managers, because the results are used to make decisions about compensation, talent management, training and internal mobility. This process also includes defining objectives for the coming year.

In 2016 the following processes will be integrated:

» recruitment;

» 360° reviews;

» training and development;

» remuneration ;

» talent management.

All of these elements are central to the employee development strategy, which involves multiple issues:

» developing skills in order to:

› meet the needs of the Edmond de Rothschild Group,

› meet their personal and professional aspirations and promote their employability,

› retain them;

» help to develop a common culture based on the Group's values;

» prepare the managers of tomorrow.

This common approach throughout the Group, covering the employee's entire life cycle, also guarantees fair treatment for all and creates the conditions for equal opportunities at different management levels.

FROM VALUES TO BEHAVIOUR: A CULTURE OF EXCELLENCEThe Edmond de Rothschild Group is known for very strong values, which employees must put into practice when doing business. Bringing these values to life is indispensable to strengthening a common culture and a collective intelligence. This is one of the key activities of the Group’s Human Resources Department.

These values have been translated into behaviours that are used to assess employee performance.

Values Behaviour

Industria – a sense of anticipation and commitment over the long term

Anticipate clients' needs and make their satisfaction the top priority

Deliver timely quality work, in line with objectives, and strive to find practical solutions in all circumstances

Propose innovative solutions, be proactive, take the initiative

Adapt to change

Concordia – a sense of responsibility and of the collective

Put collective interest ahead of personal interest

Collaborate in relationships based on trust; share information and skills

Be able to make courageous decisions

Be a manager who communicates a clear vision and is intent on fairness, cooperation, providing feedback and recognition

Integritas – a sense of excellence and ethics

Apply internal directives and regulatory requirements

Be trustworthy and reliable

Respect others in all circumstances

G4-56

In addition, the Group has a Code of Ethics that was adopted at end 2015 and entered into force in early 2016 (for more details see page 23).


The employee life cycle

IDENTIFY AND SELECT

External hiring

Internal mobility

Succession planning

ON-BOARD

Newcomers training

Goals setting

EVALUATE

Performance review

360° review

DEVELOP

Individual development plan

Coaching

Mentoring

ENGAGE

Remuneration

Benefits

Mid- and long-term incentive plans

RECOGNISE

Talent management

Promotion

Career management

30

PROFILE AND SOCIAL PERFORMANCE OF OUR GROUP IN 2015With the establishment of a Human Resources Management System (HR Online), there are more company data covering the entire Edmond de Rothschild Group for 2015. The scope will be shown in the indicator tables, and is to be understood as follows:

Parent company “Group” scope “ Main Entities ” scope

Edmond de Rothschild (Suisse) S.A.

Geneva, Lausanne, Lugano, Fribourg, Zurich, Bahamas, United Arab Emirates, Guernsey, Hong Kong, Monaco, United Kingdom, and Uruguay

Geneva*, Lausanne, Fribourg, Zurich*

Edmond de Rothschild (France)

Germany, Chile, China, Spain, France (Paris and the provinces), Hong Kong, Israel, and Italy

Paris and offices in the provinces

Edmond de Rothschild (Europe)

Belgium, Spain, Israel, Luxembourg, Portugal Luxembourg

As the system has been gradually rolled out within overseas subsidiaries and branches during the year, the following indicators are available only for the main entities for 2015: recruitment, departures, turnover, internal mobility, and promotion.

It should be noted that the indicators that are only available for the “Country” scope cover 73% of the Group’s workforce.

In 2015, the Group's workforce stood at 2,793 employees, a 4% increase versus 2014, with 98% of employees on permanent contracts. These numbers illus-trate the Group's aim of stabilising its workforce while retaining the option to seize opportunities offered by the market, and demonstrate its desire to offer employees long-term prospects.G4-20 /G4-23

ATTRACTION, RECRUITMENT & RETENTIONIn 2015, 322 people joined our three main entities (of which 79% on permanent contracts), for 167 departures. Turnover on these entities is down, with stable ave-rage seniority of 8 to 10 years depending on geography (8.6 years at Group level).

Above all, the success of the Edmond de Rothschild Group resides in the quality of its employees, their skills, their professionalism, and their commitment. To attract and then retain people with the best profiles who share the Group's vision and values is paramount, hence the establishment of a strategic talent manage-ment system (see page 28 for more details).

Regarding the remuneration policy in particular, which is an important attraction and retention factor, the numerous regulations on this subject are intended to limit excesses in terms of risk-taking and unethical behaviour. This requires not only a review of the entire remuneration system, with the creation of new tools**, but also a review at Group level of the overall remuneration strategy in order to continue attracting top talent, and enhance and encourage long-term perfor-mance. Significant work has been done on this, with the aim of tying performance (individual and collective) to retribution, which includes components other than remuneration (such as promotions and opportunities for internal mobility). To this end, HR teams will work even more closely with managers in 2016 in setting spe-cific individual targets for the teams, thereby increasing objectivity and fairness in performance evaluations.

Fair pay - equal pay for equal work - is another important principle that we have striven to respect since the beginning.G4-LA1

* With the exception of Edmond de Rothschild Asset Management in Switzerland (50 people) and Edmond de Rothschild Private Equity in Switzerland (14 people). ** For more information on the review of the remuneration policy for Edmond de Rothschild (France), see pp. 42-43 of the 2015 annual financial report of Edmond de Rothschild (France): http://www.edmond-de-rothschild.com/site/France/en/private-banking/annual-reports

8.6 yearsof service on average for employees in the Group

88%of employees have taken part in the performance

review process

25%of senior managers

are women

19 hoursof training received by

employees on average


PERFORMANCE REVIEW, TRAINING AND DEVELOPMENT FOR EMPLOYEESIn 2015, HR deployed a broad training and communications programme around the annual performance review in order to make all employees aware of its importance. Across all our entities, 1,760 people participated in these workshops, and 88% of employees underwent their evaluation with their line manager (+3% compared to 2014). An important part of the review is an assessment of the extent to which the employee complies with a series of behaviours that reflect the Group’s values and ambitions (see page 28). This pro-motes a corporate culture based on respect for the indivi-dual, dialogue, and team spirit. G4-LA11

In 2015, Human Resources also defined a mobility charter and established an intranet site and a Committee dedicated to encouraging employees to consider the development opportunities offered and to guide them in this approach. The rich diversity of the Group’s business lines, expertise and locations offers numerous opportunities for professional and personal fulfilment. 72 employees were able to change roles in 2015.

Another 157 people benefited from an official increase in their level of responsibility due to their excellent performance.

The development of both technical/job-related and per-sonal skills is another important component of the Human Resources strategy to support and prepare our employees and our Group for future challenges, in Private Banking, Asset Management, Private Equity or other Group activities.

The profound changes currently going on in the financial sector, such as the new regulations on compliance and banking secrecy, make training crucial, as well as being a major contributing factor to our competitiveness. (For fur-ther details on compliance and ethics training see page 22).

Despite training cost optimisation in 2015, more than 38,000 hours of training (all subjects combined) were taken by 91% of employees in our main entities. The setup of a learning management system (LMS) in 2016 will improve training needs identification (being synchronised with performance review) and facilitate the development and delivery of training plans.G4-LA9

TERMINATION OF EMPLOYMENT CONTRACTS BY CATEGORY IN 2015

(SCOPE: MAIN ENTITIES)

ResignationDismissalsRetirementDeathTermination by mutual agreementIntra-Group mobility*Unsatisfactory trial period

Fin de contrat par catégorie en 2015 (périmètre entités principales)

57%16%

13%

5%6%1%

2015 TRAINING BY CATEGORY (SCOPE: MAIN ENTITIES)

Technical / job-specific (including compliance**)Interpersonal / managerial skillsBeginners and advanced language trainingIT and administrative skillsSecurity and quality assurance

Classification des formations 2015 par catégories (périmètre entités principales)

36%

33%

25%

5%

* As the three parent entities of Edmond de Rothschild have their own legal status, transfers from one entity to another require employees to resign and then be rehired by the new entity.

** The number of training hours for Edmond de Rothschild (France) does not include Ethics and Compliance training, because there is as yet no common reporting system. As published on page 22, the number of Ethics and Compliance training hours for France in 2015 was 1,256. With the deployment of a training management system in 2016, we will soon be able to more complete data.

2%

1%

32

EMPLOYEE ENGAGEMENT AND MOTIVATIONOver the long term, an employee engagement survey will enable us to measure the commitment of the Group’s employees.

In the absence of a quantitative measurement of employee engagement, other indicators, as well as the proximity of Human Resources to business teams (through the work of the HR Business Partners), now enable us to evaluate employee engage-ment and satisfaction. This close attention is especially important in this dynamic phase of our Group’s evolution in order to listen to the ideas and opinions of our employees.

Absenteeism (stable or declining across our three main entities) and average years of service (8.6 years at Group level) are also good indicators to monitor and were satisfactory in 2015.

Several Human Resources activities and processes contribute directly to employee engagement and Group performance, and are thus key components of our strategy:

» remuneration process;

» performance review process;

» training and skills development;

» promotion process;

» internal mobility process.

DIVERSITY AND EQUAL OPPORTUNITIESWith 42 nationalities represented in the Group, our operations in 19 countries benefit from a cultural richness which comple-ments the diversity of our activities. Today, women make up 25% of the Group’s senior management (a 5% increase versus 2014). Women also make up 25% of the Executive Committees and Boards of Directors (local and Group).

At Group level, women account for 47% of the workforce, and 45% in the main entities. This percentage is relatively consistent across the different processes:

» 44% of employees recruited are women;

» 46% of employees trained are women;

» 41% of employees promoted are women;

» and 42% of employees who have benefited from internal mobility are women.G4-LA12

While the Group does show good results in terms of cultural diversity and representation of women, including in senior mana-gement, it is committed to upholding this situation or indeed improving it further.

The Edmond de Rothschild Group is also actively involved in integrating young people into the workplace, with 2015 figures showing 149 interns and 26 individuals covered by a work/study contract.

We develop partnerships with certain higher education institutions and training sessions to form a young talent pool and actively participate in providing vocational training for students. In 2015, the Group maintained its presence in recruitment forums of the grandes écoles, with employees participating in 12 events at the following higher education institutions: École polytechnique fédérale de Lausanne, HEC Lausanne, Celsa Paris-Sorbonne, EDHEC Lilles, EM Lyon, ESCP Europe, ICN Business school Nancy Metz, Neoma Business School Reims, Université Paris-Dauphine, Sciences Po Paris, Université du Luxembourg, and HEC Liège.

Finally, in June 2015, in France, an agreement on people with disabilities was signed for the companies in the UES (a legally recognised group of integrated companies in France*), for a three-year period. One of this agreement's commitments is to bring the employment rate of disabled employees up to 1.3% of the UES's workforce by end 2017. For further information on this agreement and the measures rolled out, see page 45 of the 2015 Edmond de Rothschild (France) annual report.

* The Employee Representative Institutions cover the scope of the following companies: Edmond de Rothschild (France), Edmond de Rothschild Asset Management (France), Edmond de Rothschild Corporate Finance, Edmond de Rothschild Investment Partners, Edmond de Rothschild Private Equity (France), and Edmond de Rothschild Assurances et Conseils (France).


BREAKDOWN BY AGE - G4-LA12 (SCOPE: GROUP)

<30 years 30 to 44 45 to 54 55 and over

12% 13% 12% 12%

45%

54%49% 48%

31%

28%28% 29%

13%5%

10% 10%

EdR (Suisse) EdR (Europe) EdR (France) EdR Group

DIVERSITY IN THE GOVERNING BODIES OF OUR MAIN LEGAL ENTITIES - G4-38 / G4-LA12

EdR (Suisse) SA EdR (Europe) EdR (France)EdR Holding SA/

EdR Group

Indicators 2014 2015 2014 2015 2014 2015 2014 2015

Supervisory Board

Number of members - 10 - 11 - 9 10 10

Percentage of women - 10% - 27% - 22% 20% 10%

Number of nationalities represented - 3 - 3 - 3 5 5

Executive Committee

Number of members - 7 - 7 - 23 13 11

Percentage of women - 43% - 29% - 22% 15% 45%

Number of nationalities represented - 4 - 2 - 2 3 4

34


Indicators Scope 2014 2015 2014 2015 2014 2015 2014 2015

HEADCOUNT AND TYPE OF EMPLOYEE CONTRACT

Headcount - G4-9 / G4-10 Group - 1,205 - 638 - 950 2,673 2,793

Headcount - G4-10 Main entities 621 711 558 545 761 793 - -

Type of contract - G4-10

Percentage of employees on permanent contracts Group - 98.6% - 96.9% - 97.9% - 98.0%

Percentage of employees on short-term contracts Group - 1.4% - 3.1% - 2.1% - 2.0%

Percentage of employees on permanent contracts Main entities - 98.7% - 96.3% - 97.5% 96.9% 97.6%

Percentage of employees on short-term contracts Main entities - 1.3% - 3.7% - 2.1% 3.1% 2.4%

Working time

Percentage of employees on full-time contracts Group - 88.8% - 82.1% - 95.9% - 89.6%

Percentage of employees on part-time contracts Group - 11.2% - 17.9% - 4.1% - 10.4%

Percentage of employees on full-time contracts Main entities - 85.8% - 81.1% - 95.8% 88.3% 88.3%

Percentage of employees on part-time contracts Main entities - 14.2% - 18.9% - 4.2% 11.7% 11.7%

ATTRACTION AND RETENTION

Recruitments - G4-LA1

Total Main entities 87 158 58 66 153 98 298 322

Percentage of women Main entities 37% 42% 59% 44% 48% 46% 47% 44%

Departures - G4-LA1

Total Main entities 93 66 157 44 78 57 328 167


Turnover - G4-LA1

Turnover Men Main entities 15% 8% 25% 10% 11% 8% - -

Turnover Women Main entities 14% 9% 24% 7% 10% 7% - -

Total Turnover Main entities 15% 9% 25% 9% 11% 8% - -

Average years of service

Average years of service by our employees Group - 8.0 - 9.6 - 9.0 - 8.6

Average years of service by our employees Main entities 9.1 8.2 9.3 9.9 9.1 9.9 9.2 -

CAREER DEVELOPMENT

Annual performance review - G4-LA11

Percentage of employees having received an annual performance review Group 79.40% - 88.64% - 90.45% - 85.57% 87.92%*

Percentage of employees having completed their review Group 70.53% - 79.68% - 70.87% - 72.92% 83.25%*

Promotion - G4-LA11

Number of employees promoted during the year Main entities 46 61 26 34 81 62 153 157


Internal mobility

Number of employees promoted to internal vacant positions during the year Main entities 24 31 35 13 13 28 72 72


Training - G4-LA9

Number of training hours** Main entities 16,006 15,507 12,636 10,311 11,417 12,711 40,059 38,529

Percentage of employees who attended at least one training course Main entities 76% 92% 97% 96% 58% 87% 75% 91%

Women as a percentage of employees trained Main entities 42% 40% 45% 45% 53% 53% 46% 46%

Average number of training hours per employee Main entities 26 22 23 19 15 17 21 19

Training budget (in thousands of CHF) Main entities - - - - - - 4,021 2,247

* These data are related to the 2015 annual performance review process which was launched in October 2015 and completed in March 2016.

** The number of training hours for Edmond de Rothschild (France) does not include Ethics and Compliance training, because there is as yet no common reporting system. As published on page 22, the number of Ethics and Compliance training hours for France in 2015 was 1,256. With the deployment of a training management system in 2016, we will soon be able to more complete data.



Indicators Scope 2014 2015 2014 2015 2014 2015 2014 2015

HEALTH, SAFETY AND WELL-BEING AT WORK

Labour relations* - G4-11

Percentage of employees covered by collective bargaining and/or employee representatives Main entities - - - - - - 68% 66%

Number of collective bargaining agreements signed over the year (also including employee health and safety) Main entities - - - - - - 4 7

Absenteeism**

Absenteeism Main entities 2.8% 2.5% 3.8% 3.8% 2.1% 2.2% - -

Frequency of work-related accidents***- G4-LA6

Taux de fréquence Main entities - - - - 2.5 - - -

Severity of work-related accidents**** - G4-LA6

Severity rate Main entities - - - - 0.1 - - -

DIVERSITY

Gender breakdown - G4-10

Women Group - 42% - 55% - 47% - 47%

Men Group - 58% - 45% - 53% - 53%

Women Main entities 39% 40% 46% 46% 48% 48% 44% 45%

Men Main entities 61% 60% 54% 54% 52% 52% 56% 55%

Women in senior management- G4-10 / LA12

Percentage of women in senior management Main entities 19% 18% 26% 29% 25% 27% 24% 25%

Female senior managers as a percentage of total workforce Main entities 5% 4% 7% 9% 6% 7% 6% 6%

Nationalities - G4-LA12

Number of nationalities Group - - - - - - - 42

Number of nationalities Main entities - 27 - 16 - 20 37 32

Average age - G4-LA12

Average age of our employees Group - 43 - 41 - 42 - 42

Average age of our employees Main entities 44 44 40 40 42 43 42 42

* Reminder: The scope of these indicators is France, Luxembourg and Switzerland, excluding Lugano (92 employees) and excluding the activities of Edmond de Rothschild Asset Management in Geneva (50 people). The seven agreements signed concern France; for further information, read the Edmond de Rothschild (France) annual report (page 45). http://www.edmond-de-rothschild.com/site/France/en/private-banking/annual-reports

** Absenteeism for our three main entities means: “Number of days of unplanned absence, or lost working days (illnesses, workplace accidents, non-justified absences) (excluding annual leave, mater-nity leave, sabbatical leave or leave to set up a business), divided by the number of days theoretically worked for the entire workforce over the reporting year.” In the Edmond de Rothschild (France) annual report, the rates differ for France, as they correspond to the definition of the Social Report, a legal report that the Bank must publish every year: “Number of days of absence due to sickness divided by the number of theoretical days worked by the headcount published in the Social Report at 31/12.”

*** The frequency of work-related accidents is calculated as follows: number of accidents resulting in lost working time x 1,000,000 / number of hours worked

**** The severity rate of work-related accidents is calculated as follows: days compensated x 1,000 / number of hours worked

MATERIAL ISSUES

» Carbon risk management and energy transition

» Integration of ESG criteria into financial analysis

» Company engagement and proxy voting

» Positive selection investment strategies

» Thematic investing integrating ESG criteria

» Impact investing

OBJECTIVES FOR 2020

» See page 40 for the complete list of our objectives for our Asset Management activity

» See page 50 for the complete list of our objectives for our Private Equity activitySituation at the end of 2015:

› 15% of the assets under manage-ment at Edmond de Rothschild Asset Management (France) are covered by sustainable invest-ment strategies (12.7% in 2014)

› 14% of requests for proposals to which Edmond de Rothschild Asset Management has res-ponded include a “sustainable” dimension (31% in 2014)

› 77.7% of the assets under mana-gement at Edmond de Rothschild Private Equity are covered by sustainable investment strategies (59% in 2014)

37 INNOVATION IN SUSTAINABLE AND RESPONSIBLE INVESTMENT


There is no doubt that 2015 was the year of Responsible and Sustainable Investment. It is now clear that the international community, all sectors combined, is unanimous as to the need to shift to a new economic paradigm based on sustainability. Many events have testified to this growing awareness throughout the year, with the signature of the Sustainable Development Goals for 2030, unanimously adopted by the 193 Member States of the United Nations in September, and the COP 21 held in Paris in December. The signature of the Paris Climate Agreement was the culmination of a series of unprecedented commit-ments made during the year by governments, businesses, and investors around the world.

For the financial sector, the new challenges to be met are measuring the carbon footprint of managed assets, managing the carbon risk, and gradually directing investments toward sustainable solutions. Furthermore, in 2015, under the impetus of initiatives such as the Principles for Responsible Investment (PRI) supported by the United Nations, and regulations such as the Energy Transition for Green Growth Act in France, the integration of Environmental, Social, and Governance (ESG) criteria has been widely acknowledged as a key component of investment processes.

In this context, and with the intention of making a meaningful contribution to this radical structural evolution of the economy, the various entities of the Edmond de Rothschild Group have set their initial sustainable investment objectives for 2020.

OUR AMBITIONS » Increase our assets in sustainable investment » Be recognised as a sustainable investment leader

› Align client investments with mission goals and values › Engage with companies on sustainability issues › Collaborate with stakeholders on sustainable investment

» By “sustainable investment”, we mean all categories of investment that can be considered responsible and sus-tainable. For us, these two terms are interchangeable. We use the acronym ‘ISR’ in French or ‘SRI’ in English as an abbreviation of Socially Responsible Investment or Sustainable and Responsible Investment.

» “Edmond de Rothschild Asset Management” or “EdRAM” is the commercial name of the asset management entities (including branches and subsidiaries) of the Edmond de Rothschild Group. It also refers to the Asset Management division of the Edmond de Rothschild Group.

38

15% of the assets managed by

Edmond de Rothschild Asset Management

(France) are covered by sustainable investment

strategies

77.7% of the assets managed by

Edmond de Rothschild Private Equity are covered by sustainable investment

strategies

OVERVIEW OF THE EDMOND DE ROTHSCHILD GROUP RESPONSIBLE AND SUSTAINABLE INVESTMENT OFFERING IN 2015

First level ESG integration (non-systematic)Simple engagementProxy-voting

SRI strategies Positive selection, Best-in-universeComprehensive engagementESG integration

Social or environmental strategies (as growth opportunities) with a formalised ESG methodology and comprehensive engagement

Impact investing to create positive social and/or environmental value for society and for investors (com-petitive with the market)

“Impact first” investment / philanthropy with a focus on

environmental and social impact (reduced return on investment)

Competitive returns

ESG risk management

ESG opportunities

High-impact solutions

The New Paradigm

The Edmond de Rothschild Foundations*

› 1 ‘Impact First’ investment strategy in Africa

› 1 Social Impact Bond in Israel in education

The philanthropic activities of the Edmond de Rothschild Foundations*

Asse

t Man

agem

ent

stra

tegi

es

European and US-listed equities strategies

1 SRI listed equity selection strategy with ‘Sustainable Growth’ theme focus

1 SRI engagement strategy for listed equities1 SRI strategy for corporate creditSRI mandates1 quantitative sustainable multi-asset strategy

Open architecture for Long Only multi-asset SRI mandates (active strategy)

Priv

ate E

quity

st

rate

gies

2 Small / Mid Caps strategies 1 Life Sciences-themed strategy1 African Economic Development-themed strategy

1 Agroforestry-themed strategy1 Soil remediation-themed strategy

Tailored solutions: Dedicated SRI mandates, proxy voting, dedicated reporting

evolved strategy in 2015 | new strategies in 2015

The dotted lines in this diagram indicate the threshold that defines which assets under management we count in our Sustainable investment category. We only count assets under management covered by strategies that apply a formalised, structured and traceable ESG or SRI methodology with comprehensive engagement.* The Edmond de Rothschild Foundations are a network of 10 private foundations of the Rothschild family. They are entirely separate and independent from the Edmond de Rothschild Group

G4-FS11


Overview of responsible and sustainable investment for the Edmond de Rothschild Group – G4-FS7 / G4-FS8 / G4-FS11

2014 2015

Asset Management Number of strategies for all listed asset classes which apply a sustainable investment methodology 3 4

Asset Management

Assets under management at all Edmond de Rothschild Asset Management entities covered by sustainable investment strategies (excluding mandates) (in millions of CHF)

1,804 1,787

Asset Management Assets under management in institutional mandates covered by sustainable investment strategies (in millions of CHF) 1,690 1,926

Asset Management

Percentage of assets under management at Edmond de Rothschild Asset Management (France) covered by sustainable investment strategies

12.7% 15.0%

Asset Management

Percentage of assets under management at Edmond de Rothschild Asset Management covered by sustainable investment strategies

- 8%*

Private Equity Number of strategies for Private Equity which apply a sustainable investment methodology 6 7

Private EquityAssets under management at Edmond de Rothschild Private Equity covered by sustainable investment strategies (in millions of CHF) - of which assets under management at Edmond de Rothschild Private Equity covered by impact investment strategies

1,628

165

1,812

178

Private EquityPercentage of assets under management at Edmond de Rothschild Private Equity covered by sustainable investment/impact investment strategies

59.0% 77.7%

GroupNumber of investment strategies managed by an entity of the Edmond de Rothschild Group that is a signatory of the UN-PRI

6 11

Group Total Group assets under management covered by sustainable investment strategies (in millions of CHF) 5,122 5,526

Group Percentage of Group assets covered by sustainable investment strategies 3.1% 3.4%

GroupPercentage of requests for proposals to which Edmond de Rothschild Asset Management responded including ESG/SRI criteria

31% 14%

With regard to Asset Management, with 18% growth over one year in our listed SRI assets under management by Edmond de Rothschild Asset Management (France), 2015 was a very positive year, thanks to a significant market effect combined with subscriptions in strategies, as well as the adoption of a “best in universe” SRI credit strategy. 15% of the assets under manage-ment at Edmond de Rothschild Asset Management (France) are covered by formal socially responsible investment strategies (12.7% in 2014). Considering the overall scope of Asset Management*, the percentage of assets under management covered by SRI strategies is 8%.

In addition, at the end of 2015, Edmond de Rothschild Asset Management (France) was still in a competitive position on the Socially Responsible Investment marketplace in France, ranked eighth among asset managers distributing funds certified in France (all asset classes combined), according to the ranking established by Novethic**.

Concerning Private Equity activities, 2015 was a year of transition, with the roll-out of an ambitious strategy whose effects will be felt in 2016. After that date, all new funds will systematically incorporate an ESG approach.

By converting the transport infrastructure investment strategy to ESG integration, the activity of the Edmond de Rothschild Private Equity platform covered by ESG or impact strategies rose from 1,628 million CHF in assets under management in 2014 to 1,812 million in 2015, an 11% increase, thereby covering 77.7% of assets under management at Edmond de Rothschild Private Equity. At the same time, the volume of assets under management covered by impact investment strategies rose 8% between 2014 and 2015 (20.2% excluding the CHF/EUR foreign exchange effect).

* This scope excludes Asset Servicing and Overlay activities.** Source : Novethic.

40

SUSTAINABLE AND RESPONSIBLE INVESTMENT IN OUR ASSET MANAGEMENT ACTIVITIES

OUR 2020 OBJECTIVES*

New steps in our sustainable investment approach

Adopt a Sustainable investment Strategy 2017-2020 for all types of investment expertise at Edmond de Rothschild Asset Management.

Define a Sustainable investment Action Plan and an Action Plan on management of climate risk for the 2017-2020 period.

Toward a systematic integration of ESG criteria within our management

Establish a formalised, traceable ESG integration process for European equities management, which will enhance our existing approach to shareholder activism and step up internal ESG research efforts.

Extend the scope of ESG analysis to all equity, corporate and sovereign debt funds of Edmond de Rothschild Asset Management (2014: 295 businesses)

Establish formalised, traceable ESG integration processes for our strategies of infrastructure debt and direct investment in Swiss real estate.

Dissemination of a sustainable investment culture to all our management teams

Train 100% of internal equity and bond management teams in sustainable investment/ESG.

* Excluding the scope of asset management for the Group’s Private Banking business line.G4-DMA FS4

Philippe UzanChief Investment Officer, Edmond de Rothschild Asset ManagementChairman of Responsible Investment Steering Committee, Edmond de Rothschild Asset Management (France)

There was a distinct acceleration in the trend towards a more sustainable economy and world in 2015. What are the consequences for the investment market in the coming years, and for the sustainable investment strategy of Edmond de Rothschild Asset Management?

All of the signals point to the fact that sustainable and responsible investment is now moving beyond the niche category it was relegated to in the past. Institutional players are increasingly integrating it into their investment strategies as part of their fiduciary responsibility, but also in response to changes in legislation and to the economic, social, and environmental trends that are intrinsically linked to the challenges of sustainable development. For several years, we've firmly believed that when we consider these challenges from the angle of our management by conviction, backed by a rigorous analysis of the risks and opportunities, we see that they're a source of economic growth and return on investment.

In terms of the key issue of COP 21, which was held in Paris in 2015, we are naturally concerned about the consequences of climate change on the management of our portfolios. Edmond de Rothschild Asset Management (France), consistent with its Responsible Investment Strategy, has taken a stance by signing the Montreal Carbon Pledge and publishing the carbon footprint of 60% of its equity assets under management.

Our target for the next four years is to convince a growing number of international clients, both institutional and distribution, of our capacity to identify extra-financial issues and derive value from them. This means that we must continue to expand our sustainable investment expertise by integrating it, in various forms, into the majority of our mana-gement expertise. In 2016, this will result in the gradual mobilisation of all of the teams to prepare the roadmap for the next Responsible Investment Strategy 2017-2020 for the Asset Management business line of the Edmond de Rothschild Group.


Odile ConnacHead of Institutional Investor Relations, France and Benelux, Edmond de Rothschild Asset Management (France)

How are institutional clients' expectations of their asset managers changing with regard to sustainable investment, and what must be done to respond to this?

We're seeing a strong increase in interest. The most dynamic players are deepening their ESG management approach by becoming more rigorous and now adding the search for ‘low carbon’ solutions. At the same time, medium-sized or smaller institutional clients are beginning to act, and can often advance very quickly in the deployment of their sustainable invest-ment strategy.

On our side, we must anticipate our clients' very specific needs and be proactive to accompany them in their journeys, wherever they are on the SRI maturity curve. We have a very pragmatic and solid approach, and it's not our intention to try and do everything. Our philosophy is to evolve with our clients when the market crosses a significant threshold, whether it be ‘low carbon’ management or the search for positive sustainable impact.

The next generation is imbued with this idea and will inevitably be a vector of renewal and acceleration of the SRI approach. It's our job to anticipate this trend.G4-27

13% of requests for proposals to which Edmond de Rothschild Asset Management responded in 2015 included criteria relating to sustainable investment and/or sustainabi-lity in general (31% in 2014). This number is down from 2014, notably due to the cyclical nature of RFPs for the SRI man-dates of institutional investors. The analyses done by teams in charge of responding to these RFPs show that the asset class most concerned by SRI/ESG requests is still equities (40%).

The proportion of requests for proposals including SRI/ESG criteria is 19% for Edmond de Rothschild Asset Management (France), where there is a growing trend towards the inte-gration of “low carbon” criteria.

Philippe DesfossésCEO of the ERAFP (French Public Service Additional Pension Scheme), France

What is the ERAFP expecting from asset managers on the topic of responsible investment today, and how should they prepare for the changes to come?

Since its creation, the ERAFP has adopted an investment policy which, through its recognition of social factors, good gover-nance, and respect for the environment, aims to select stocks from issuers who are most aware of the interest of actively par-ticipating in the emergence of a more resilient, less carbon-intensive economy. This policy, which is summarised in a Charter, is implemented according to the Best in Class principles that represent the most suitable approach for the “universal owners” which are the major pension funds, of which the ERAFP is now one. Our asset managers, in the context of the mandates that are entrusted to them, make the commitment to implement this policy. The evaluation of their performance also includes this SRI dimension, because for us, the distinction between what is financial and what is extra-financial is not relevant. For a real long-term investor like the ERAFP, everything that determines the sustainability of business models (e.g. quality of gover-nance, control of the supply chain, limitation of environmental impact) has, by definition, a financial implication.

Being selected to manage a portion of the ERAFP's assets is proof of the capacity to deploy an SRI policy. It is a quality that will be especially valued because lthe decree of Article 173 of the French law on the energy transition will accelerate investors' growing awareness of the stakes associated with sustainable development and climate change. And so the requests made of asset managers are thus expected to increase in the next few years, and all those who have already demons-trated their expertise in managing assets in a way that integrates these aspects will have the edge.

REQUESTS FOR PROPOSALS TO WHICH EDMOND DE ROTHSCHILD ASSET MANAGEMENT RESPONDED IN 2015

RFPs integrating ESG/SRI or wider sustainability aspects

RFPs without ESG/ISR criteria

RFPs dedicated specifically to sustainable investment

RFPs from retail investors

RFPs from retail investors from institutional investors

Appels d'o�res auxquels Edmond de Rothschild Asset Management a répondu en 2015

87% 11%

2%

47% 53%

42

CONCRETE IMPLEMENTATION OF THE RESPONSIBLE INVESTMENT STRATEGY OF EDMOND DE ROTHSCHILD ASSET MANAGEMENT (FRANCE)

Governance and management of the sustainable investment strategy

Edmond de Rothschild Asset Management (France)

Executive Committee

Edmond de Rothschild Group Sustainability Director

Sustainable and Responsible Investment Steering Committee

Work group project SRI in fixed income

Work group project ESG integration

European equities

Work group project ESG/SRI Long Only

Multi-Asset

Work group project SRI reporting

Work group project external visibility of

SRI expertise

Work group project internal communi-cation and training

on SRI strategy

Driven by the Responsible and Sustainable Investment (SRI) Steering Committee, which meets once or twice a year and reports directly to its Executive Committee, the 2013-2016 SRI Strategy of Edmond de Rothschild Asset Management (France) is implemented across several work group projects. In 2015, the strategy resulted in the materialisation of projects launched in 2014, including:

» the Fixed Income SRI project that resulted, on 1 September 2015, in the launch of the first SRI credit strategy for the open market. This eurozone credit strategy applies a best-in-universe SRI approach on securities that are mostly Investment Grade according to Standard & Poor’s or equivalent, or that have an equivalent internal rating by the asset manager, but with a pocket of diversification in High Yield (speculative securities for which there is a higher risk of default by the issuer) (see page 45 for more information). An initial approach to ESG analysis on sovereign issuers in the eurozone was also put into practice in 2015. This approach, in the testing phase, is set to be further formalised in 2016;

» the evolution of the SRI strategy in ESG selection using a best-in-universe approach, which was awarded its 7th SRI certification in September 2015, specifically in recognition of management that systematically takes ESG criteria into account. This label certifies the impact that ESG analysis has on the portfolio's composition. (See page 44 for more information) ;

» two new work group projects dedicated to ESG integration that were created in 2015: one for European Equities, the other for Long Only Multi-Asset. The purpose of these two work group projects is to formalise the procedures for integrating ESG into the analysis and/or investment processes of these two kinds of management expertise, based on the best practices of the market in this domain*.

Management of SRI strategies for the open fund market of Edmond Rothschild Asset Management (France) is done inter-nally, using a proprietary analysis conducted throughout the year. In 2015, the SRI team analysed the ESG performance of 138 businesses, and met with 39 on extra-financial topics.G4-FS11

SHAREHOLDER ACTIVISM AT EDMOND DE ROTHSCHILD ASSET MANAGEMENT - SDG 12 13

Edmond de Rothschild Asset Management (France) has a voting policy applicable in France and abroad for all managed equity portfolios. As long as the information provided by the issuer and custodians is sufficient, this entity commits to exercise all voting rights associated with the shares held by the portfolios that it manages and to encourage open and constructive dia-logue with issuers.

In 2015, the voting** was once again intense, with participation at 717 General Shareholder Meetings compared to 679 in 2014. The total number of “no” votes made up 20% of all votes, or 1,807 resolutions out of 9,135. Even if this share of opposing votes was stable compared to 2014, Edmond de Rothschild Asset Management (France) adopted strong and clear positions on topics such as Say on Pay and the appointment or renewal of company officers and directors' fees. On this last point, the voting policy of Edmond de Rothschild Asset Management (France) is strict because it attaches great importance to the independence of the shareholder representative bodies: the Supervisory Board and the Board of Directors.G4-DMA FS1/FS12 / G4-FS10

* We do not count our assets under SRI investment or ESG integration strategies unless they are formalised and traceable. The dotted red lines in the diagram on page 38 show which strategies are formally counted in the scope of sustainable investment.

** See the Annual Report on the exercise of voting rights in 2015: http://www.edmond-de-rothschild.com/SiteCollectionDocuments/asset-management/isr/EDRAM-FR-Rapport-annuel-sur-exercice-des-droits-de-vote.pdf


VOTING STATISTICS, EDMOND DE ROTHSCHILD ASSET MANAGEMENT (FRANCE) - G4-DMA FS12 / G4-FS10

2011 2012 2013 2014 2015

Number of General Assemblies that Edmond de Rothschild Asset Management (France) attended 661 754 759 679 717

Voting rate for the equity investment universe 80% 92% 85% 75% 84%

Number of resolutions voted on 7,338 7,873 9,071 8,559 9,135

Percentage of votes “against” 15% 18% 21% 20% 20%

NUMBER AND TYPE OF RESOLUTIONS AGAINST WHICH EDMOND DE ROTHSCHILD ASSET MANAGEMENT (FRANCE) HAS VOTED IN 2015 - G4-DMA FS12

Number of resolutions Breakdown of votes

Approval of Accounts and Allocation of Income 636 35%

Approval of Regulatory Agreements (Excluding Remuneration) 57 3%

Anti-takeover provisions 339 19%

Amendment of articles 302 17%

Appointment/Director's Fees for Members of the Board of Directors or Supervisory Board

53 3%

Appointment/Remuneration of Statutory Auditors 266 15%

Financial Transactions/Mergers 28 2%

Remuneration of Managers and Employees 60 3%

External resolutions (not approved by the Board) 66 4%

Total votes 1,807 100%

In 2015, Edmond de Rothschild Asset Management (France) took a strong position against the new provisions in France of the “Law for the Reconquest of the Real Economy” of 29 March 2014, also known as the “Florange Law” (Article L.225-123 of the French Commercial Code). Edmond de Rothschild Asset Management (France) explicitly disapproves of double voting rights in favour of shareholder equality as embodied in obtaining one voting right per share held. Thus, a standard letter was sent out on 13 January 2015 to the Chairmen of some twenty companies whose shares are held by certain funds managed by Edmond de Rothschild Asset Management (France), to encourage them to add a proposal to their 2015 General Meeting agendas to change the by-laws to return to the “one share - one vote” principle.

And in keeping with its commitment to combat climate change, in 2015, Edmond de Rothschild Asset Management (France) joined a coalition of about sixty global investors representing nearly US$2,000 billion in assets under management. This coali-tion sent out letters to oil and gas companies asking for information about their capital expenditures in a context of rising costs, about carbon-intensive exploration projects, and the impact of a possible reduction in demand for oil products from 2020 onwards.

Simple individual Dialogue- Engagement actions

Comprehensive individual Dialogue- Engagement actions

Collaborative Dialogue- Engagement actions

67 3 1

Relevant ESG pillars: Mix of environmental, social, and governance topics

Relevant ESG pillar: Governance Relevant ESG pillar: Environmental

G4-FS10

In 2015, Edmond de Rothschild Asset Management (France) conducted 67 simple engagement actions: 9 preparatory or subse-quent to resolutions that were voted on by shareholders (e.g. with Air France, CGG, Crédit Agricole, Peugeot, Total, Sopra, and Steria companies), 19 in preparation for the General Shareholders' Assembly in the context of the Florange Law, and 39 in the context of one-to-one SRI meetings that are used in the internal proprietary ESG research and analysis process, as well as to exchange with business leaders or representatives of top management on specific ESG issues. G4-DMA FS5

* See the Annual Report on the exercise of voting rights in 2015: http://www.edmond-de-rothschild.com/SiteCollectionDocuments/asset-management/isr/EDRAM-FR-Rapport-annuel-sur-exercice-des-droits-de-vote.pdf

44

Jean-Francis DuschManaging Director, Global Head of Infrastructure, Real Assets & Structured Finance, Edmond de Rothschild Asset Management (UK)

By 2030, the transition to a sustainable economy will require investments in ‘green’ infrastructure and energy efficiency, estimated at $13.5 trillion*. How is your infrastructure debt strategy responding to this market opportunity, and what is your ambition in terms of integrating ESG (Environmental, Social, and Governance) criteria in this context?

First of all, infrastructure financing is part of sustainable development, in both its social and environmental components. With regard to the latter, our infrastructure debt strategy respects the Equator Principles in this process. In analysing our investments, we are looking closely at certain ESG criteria relating to the construction and operation of the infrastructure we're financing. The environmental component becomes key, in particular within the specifications that the Governments require of private partners that develop PPPs (Public-Private Partnerships). Infrastructure financiers are also engaging in initiatives to define common ESG criteria to reinforce this aspect in investment processes. Increasingly, these expectations result in requests for proposals and due diligence processes that are more demanding in terms of ESG integration.

Today, we're adopting a pragmatic approach on two fronts: the gradual formalisation of ESG integration processes, on the one hand, and investment in ‘green’ infrastructure projects in response to growing demand for financial products on energy transition issues, on the other. For example, in 2015, 15% of investments in our first infrastructure debt strategy were allocated to renewable energy projects, such as offshore wind. In 2016, this percentage should rise to 25% because of investments in energy facilities using biomass. In the future, when the second strategy is launched, an even more dominant place will be given to investment in this type of sustainable project.

SDG 9 11 17

DEVELOPMENT AND EXPANSION OF SUSTAINABLE INVESTMENT EXPERTISE WITHIN EDMOND DE ROTHSCHILD ASSET MANAGEMENT

For 10 years, Edmond de Rothschild Asset Management (France) has been developing its sustainable investment offering in keeping with the new demands of the market and its clients and with the ambition to remain among the leaders in this area. It is in this same dynamic that we adapted one of our equity SRI strategies in 2015 and have rolled out our SRI expertise to credit management.

Beyond France, this market trend is also being felt and the mainstreaming of ESG integration in all asset classes is well underway. It is in this context that our fund managers in direct real estate and infrastructure debt have decided to forma-lise their own ESG integration approaches, benefitting from the recognised experience and solid expertise of Edmond de Rothschild Asset Management (France).

These different activities contribute to the gradual achievement of our initial objectives for 2020 in terms of Sustainable investment (see page 40).G4-27 / G4-DMA FS2

Marc HalperinEquity Manager, European Securities, Edmond de Rothschild Asset Management (France)

In 2015, the best-in-universe/best effort equity SRI strategy of Edmond de Rothschild Asset Management developed to respond to changing trends and client demands. What is the logic behind these changes, and what concrete steps have been taken to implement them?

While everyone recognises the contribution of ESG analysis to traditional financial analysis to better identify a company's risk profile, few perceive the development opportunities that a good number of players have to offer in fields like energy transition or digitisation of the economy. This is what motivated our decision to anchor our investments in growth stocks that are exposed to these new issues: these companies will undergo structural development, because they meet the growing need of consumers and industrial companies. In this regard, the interest a major group like Siemens may have for a player like Gamesa, a manufacturer of wind turbines which we have in the portfolio, appears to be symbolic.

We also wanted to go even further in our SRI approach, by measuring and publishing our portfolio's impact on five criteria which are measured in real time: the carbon footprint, the increasing presence of women on the Executive Board, the trend in accident rates for industry, and absenteeism for services, as well as the signature of the UN Global Compact. At the end of 2015, our portfolio emitted 70% less CO2 than its benchmark index.

*Source : http://www.worldenergyoutlook.org/media/weowebsite/2015/WEO2015_Factsheets.pdf


THE EVOLUTION OF OUR SUSTAINABLE INVESTMENT APPROACH OVER ALMOST 10 YEARS

Best-in-class process for US

listed equities for an institutional

client

Evolution of the best-in-universe

SRI strategy: “sustainable

growth” theme with impact

SRI corporate credit strategy

Environmental-themed strategy

Best-in-universe/best effort SRI

strategy for listed equities

SRI engagement strategy for listed

equities (SRI engagement label from 2011 to

2012)1st SRI institutional

mandate 2nd SRI mandatePublication of the “SRI Chronicles”

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Technical environmental

committee

1st SRI action plan - Dedicated

SRI team with proprietary ESG

analysis

Signed UN-PRI

Joined FIR/Eurosif

Voting and Engagement

Policy

Gold sponsor of the Paris

Europlace CSR-SRI workshops

UK Pension Fund Award: best

ESG/SRI provider shortlist

2013-2016 Responsible Investment

strategy

Formalisation of the Responsible

Investment Policy

Signatory of the Montreal Carbon

Pledge

Carbon and climate change

positioning

Towards a gradual mains-

treaming of ESG integration and a RI strategic plan

for 2017-2020

Among the leaders of its PRI peer group

Top 10 SRI managers in France

SRI strategy received best-in-universe label from Novethic

Financing of the Chair of Responsible Finance and Sustainable Investment at the Ecole Polytechnique in Paris and the Toulouse School of Economics. Involvement in the SRI work of the Association Française de la Gestion Financière (AFG), SIF and Eurosif (see page 63 for more details)

Emmanuelle Kilian-BarnetHead of Portfolio Management, Direct Real Estate, Edmond de Rothschild (Suisse) S.A.

How is your strategy of direct investment in Swiss real estate changing to integrate ESG (Environmental, Social, and Governance) criteria?

The ESG dimension, for direct real estate, is both a necessity (40% of CO2 emissions produced by Switzerland come from buildings) and a desire (to reduce owner and tenant costs, improve tenants' comfort, rejuvenate the buildings owned, etc.).

Our wish is to integrate the ESG dimension at all levels and throughout the life of the building, whether with large-scale actions, such as major Minergie renovations, or simply minor actions (installing solar panels, performance contracts with heating engineers, etc.). Indeed, we are convinced of the importance of accumulating small gestures to obtain an effective overall result. We are also handling the social and societal aspect in a cross-cutting way with accessible buildings, diverse tenants, and improved living conditions.

For the years to come, we would like to further formalise this sustainable approach that we have developed, integrating it into an action plan with targets to be achieved. Moreover, we are going to develop the methods for measuring these criteria so that targeted actions can be performed according to need.SDG 9 11

Alexis ForêtManager Analyst, High Yield, Corporate Debt, Edmond de Rothschild Asset Management (France)

In 2015 the first SRI strategy of Edmond de Rothschild Asset Management was developed for the credit market. How is the new SRI methodology integrated into your management processes, in practice? And what would your assessment be of it at this stage?

The challenge is integrating the ESG aspect quickly and efficiently. As a manager, I benefit from the internal SRI team's analytical work, and from exchanges with our specialised analysts. You've got to go straight to the heart of the matter to identify the issues that may have a material impact on the company's performance. For the credit market, we look at everything through the lens of the company's ability to repay its debt. ESG analysis provides a dimension that traditional financial analysis doesn't necessarily include, but which is increasingly important. It's about identifying risks first and foremost - environmental, social and governance risks - but also market opportunities and, generally, signs of good corpo-rate management.

In traditional credit analysis, we look at two things: the balance sheet, which is a snapshot of the situation, and the com-pany's future trajectory. For ESG issues, in a similar way, we look at the overall rating (snapshot) and any controversies or other topics that tell us more about the company's dynamic (future trajectory). The ESG impact is very easy to fit into the basic analysis, while at the same time enhancing it.

46

OUR COMMITMENTS AND ACTIVITIES FOR COMBATING CLIMATE CHANGE - SDG 13G4-2 / G4-EC2

Signature of the PRI Montreal Carbon Pledge: an approach committed to combating climate change by Edmond de Rothschild Asset Management (France)In line with the position expressed by Ariane de Rothschild at the COP 21, and consistent with its Responsible Investment Policy, Edmond de Rothschild Asset Management (France) wanted to signal its involvement in the fight against climate change by signing the Montreal Carbon Pledge in 2015. This initiative is backed by the UN-PRI, to which Edmond de Rothschild Asset Management (France) has also been a signatory since 2010*.

As a signatory, this entity has committed to gradually measuring and publishing the carbon footprint generated by its investments every year. This first commitment was honoured on 1 December 2015 on a portion of its investments in equities, i.e. the France/Eurozone/Europe equity portfolios (except Midcaps funds), representing about 60% of equity assets under management**.

This measure does not have the immediate consequence of a systematic reduction in the CO2 footprint of the relevant port-folios, but it is the first step in integrating the carbon risk into management of the portfolios. It also raises the awareness of all stakeholders about the carbon challenge and highlights the fact that Edmond de Rothschild Asset Management (France) seeks to be transparent on this subject.G4-15

In 2015, Edmond de Rothschild Asset Management (France) was selected to participate in a virtual management competition with a ‘low carbon’ approach.AmLeague makes its secure IT platform available to asset managers who want to prove their capacity to create alpha, in a stan-dardised framework that institutional investors have created. This public and transparent methodology ensures total compa-rability between the various asset managers who are competing. At the end of 2015, we launched a low-carbon global fund on this platform, drawing on our internal expertise in SRI for European equities, and using Vigeo research for US and Asian stocks. We're investing in stocks that will respond to the economic realities of tomorrow's world, and reducing the carbon footprint is one of its main components, because it meets the strong expectation of consumers and regulators. Many of our preferred stocks are in sectors relating to the energy transition or the digitalisation of the economy, with companies such as Toyota, Shimano, Legrand, Google, Ecolab, and Suez Environnement.

For more information, see: www.am-league.com/en/rankings/

Carbon Footprint measured in CO2 eq. tons/M€ invested in investment strategies of Edmond de Rothschild Asset Management (France) at 31.12.2015

Investment strategy Benchmark

Euro Equities SRI Strategy - ESG Best-in-Universe and Growth Stocks 76.2 326.4

Euro Equities Strategy – Growth Stocks 83.7 326.4

France Equities Strategy - Opportunistic Approach 551.1 408.8

France and Eurozone Equities ESG Engagement SRI Strategy 429.6 408.8

Europe Equities Strategy - Value and Yield Stocks 120.5 220.4

Europe Equities Strategy - Mergers & Acquisitions and Restructuring Stocks 120.1 220.4

Europe Equities Strategy - Stocks exposed to growth zones 193.0 220.4

* To find all responses by Edmond de Rothschild Asset Management (France) to the latest annual reporting session of the UN-PRI, click on the following link: http://www.edmond-de-rothschild.com/SiteCollectionDocuments/asset-management/isr/EDRAM-EN-Public-Transparency-Report.pdf

** http://www.edmond-de-rothschild.com/SiteCollectionDocuments/asset-management/isr/EDRAM-FR-EN-empreinte-carbone-carbon-footprint.pdf


Clémence MoullotSRI Analyst-Manager, Edmond de Rothschild Asset Management (France)

How do you determine the carbon footprint of the equity portfolios as you did in 2015, and how do you apply that to the portfolio?

Our own database enables us to calculate several indicators, according to, for example, turnover, or per euro invested. We start with public data, focusing on scopes 1 and 2 of the Greenhouse Gas Protocol* of European companies, because they report these data pretty well. We have an ongoing dialogue with them so they can improve transparency and reliability, and expand their calculations to scope 3 and to emissions prevented. We benefit from our internal research on the companies to calculate more qualitative indicators on the carbon impact of companies' products and services, specifically for emissions-heavy industries (automobile, utilities, etc.) or to identify the players offering solutions towards the energy transition.

In the framework of the Montreal Carbon Pledge, which we signed in September, we calculate the carbon footprint of all European equity funds, and most ‘mainstream’ funds have very good performance on that index.G4-DMA FS2

#FOCUS

OUR IMPACT INVESTING STRATEGY ON AGROFORESTRY PRESENTED AT COP 21In December 2015, in her speech during the plenary opening session of the Global Landscapes Forum, held in Paris during the COP21, Ariane de Rothschild presented the Edmond de Rothschild Group's strategies for impact investment in soil remediation and agroforestry.

Stressing the importance of the private sector's role in resolving these issues, and the fact that the sustainable aspect of these investment projects stems from their profitability, she showed how the agroforestry strategy has contributed to the creation of a virtuous cycle of sustainable, social, and economic development.

This strategy invests in Africa and South America, in projects combining farm crops and forestry production, in partnership with local smallholders.

A single project should make it possible to reduce CO2 emissions and combat poverty, through an enhancement of traditional production methods, benefiting local populations, who are involved in cooperative “outgrowing” schemes**.

The 80 million euro that are in the investment phase, with a return on investment over a 10-15 year horizon, represent a practical first step in testing the solutions that may then be expanded, and a way to “de-risk” the approach to make it accessible to a wider panel of investors.

* For a definition of scopes 1, 2 and 3 of the Greenhouse Gas Protocol, see: http://www.ghgprotocol.org/calculation-tools/faq#directindirect.

** « Outgrowing » is the term used to designate a partnership between an agricultural company and smallholder farmers, which generally includes the provision of seeds and other supplies, technical advice and the transformation and sale of products.

48

SUSTAINABLE AND RESPONSIBLE INVESTMENT IN OUR PRIVATE BANKING ACTIVITIES

In 2015, we continued to see growing interest in sustainable investment among our Private Banking clients. The challenge in this area is to ‘translate’ technical concepts relating to sustainable investment strategies used by institutional investors into simpler and more accessible opportunities with a focus on the companies' environmental and social impact.

First, the private bankers themselves must take ownership of the topic so that they can feel at ease when discussing it with their clients. The Sustainability Department worked with several sales teams in Private Banking in 2015 to raise their awareness on the subject, understand their needs, and provide them with presentation materials. We will continue with this work in 2016, with the creation of a dedicated toolbox (see page 63 for information on the training programme developed with Swiss Sustainable Finance).G4-27 / G4-DMA FS4

Vincent TaupinMember of the Edmond de Rothschild Group’s Executive Committee, CEO Edmond de Rothschild (France)

The changes relating to the transition to a sustainable economy force us to question ourselves and to reinvent the rules of the game, by proposing an innovative line of products and services. Our ambition is to transform these changes into real opportunities for our clients.

We find that the sustainable and responsible investment market has come a long way, and today enables investors to com-bine financial profits with societal impact. It is now possible to demonstrate the benefits of proper management of the risks and opportunities linked to environmental and social criteria. This is what we want to integrate into our approach.

Carole Tanguy-LepyPortfolio Manager, Private Banking, Edmond de Rothschild (France)

What categories of private client in France are sensitive to sustainable investment, and how should Private Banking's products and services evolve to respond to clients' expectations?

Most of our semi-institutional clients, such as family offices, foundations, and religious organisations, are already quite sensitive to the need to integrate extra-financial criteria, just as more and more individual clients are intent on aligning their investments with their values. This interest is literally ten times greater in the new generation, known as “Millennials.” While semi-institutional clients have a particular interest for the social and governance issues that reflect their own missions and activities, individuals are often much more aware of environmental issues.

Investing in sustainable investment (SRI) style management entails seeking a positive impact and encouraging all players in the real economy to improve their ESG (Environment, Social, and Governance) behaviours. SRI, which ultimately is only the financial portion of sustainability, is a concrete way of supporting a responsible economy that protects the environment and is intent on social cohesion (carbon footprint, water consumption, employee representation, employee health and safety, transparency of financial and extra-financial data, etc.).

What these investors want is to reconcile a responsible approach with financial gains. Contrary to assumptions, good management of extra-financial criteria very clearly reduces ESG risks (governance scandals, environmental accidents, etc.) and enables certain causes of under-performance to be avoided. Beyond the traditional value of a company's assets, the appreciation of extra-financial criteria has a key role to play in the value creation process and can really generate performance.


Arnaud HeymannSenior Manager Analyst, Multi-Asset, Edmond de Rothschild (Suisse) S.A. - Asset Management

In 2015, to meet the demand of the Private Banking sales teams, you worked on a new sustainable investment offering in Long Only Multi-Asset activity. What is the objective of this offering, and how have you gone about developing it?

What motivates our approach to selecting external sustainable investment (SRI) funds is the observation of a profound transformation that's going on all along the value chain. There's a growing awareness that investors have a key role to play to shift the economy toward a sustainable model that reconciles financial performance and recognition of the Environmental, Social, and Governance (ESG) impact of companies, hence the name of our approach, “Sustainable Transition”. Our goal is to select SRI funds that have both good financial performance and a positive ESG impact and/or good management of extra-financial risks. We classify the relevant funds according to three sustainable investment strategies: engagement with traditional businesses that have to improve their sustainability performance; encouragement of businesses who are already making significant progress in their continuous improvement approach; and the search for businesses that generate their performance around a sustainable and very innovative business model.

Today, we can put our know-how to work in the selection and due diligence of financial products for the roll-out of this new SRI offering, at the same time enhancing our approach through the SRI expertise of an external partner. Added to the purely financial criteria are sustainability criteria ranging from mere exclusion to strong impact. We prefer managers who include a rigorous and relevant extra-financial analysis that considers the companies' sector-specific challenges. Next, the different approaches and skills of these managers must be combined to offer clients balanced mandates that meet their expectations in terms of sustainability and performance. G4-DMA FS2

#FOCUS

OUR NEW PRIVATE EQUITY INVESTMENT VEHICLE FOR PRIVATE BANKINGIn 2015, we set up a solution allowing the private clients of Edmond de Rothschild (France) to access some of its iconic investment strategies in Private Equity, including those focusing on soil remediation and on health and biotechnologies (see pages 52-53). Five out of six of these strategies adopt a formal methodology for integrating environmental, social, and governance (ESG) criteria, and one strategy is in the “impact” category. This solution aggregates smaller invest-ments and thus makes investment strategies accessible that were, until now, reserved for major investors.

The ambition of Edmond de Rothschild (France) through this new vehicle is to allow more of its private clients to invest in private equity and thus benefit from a solution that allows them to diversify their assets using an asset class that is appreciated for its tangible nature and its low correlation to the financial markets. This strategy is oriented towards investing in more than 80 companies in sectors of the traditional economy, life sciences and land management. It reflects our DNA as an engaged investor, our long-term vision, and our wish to open up new investment territories and finance the issues of the future that contribute to sustainable development.

50

SUSTAINABLE AND RESPONSIBLE INVESTMENT IN OUR PRIVATE EQUITY ACTIVITIES

There are two main aspects to sustainable investment as we apply them to our Private Equity activities:

» Mainstream private equity strategies with or without a thematic focus (for example life sciences, economic development in Africa) that integrate environmental, social and governance criteria into financial analysis, investment decision-making, contractual agreements and portfolio monitoring.

» Thematic ‘impact investing’ strategies, which are of interest to a growing number of institutional investors, including Development Finance Institutions, family offices and private clients seeking a measurable positive social and/or environ-mental impact alongside market-rate risk-adjusted returns.

OUR 2020 OBJECTIVES

Convert a new strategy to the best ESG practices each year, with 100% of the strategies covered by 2020.

Measure the impact across all impact investment funds and mainstream funds which apply ESG inclusion methodologies, by 2017.

Increase the assets under management in our impact investing funds by 20% per year by 2020.

Currently seven of our twelve strategies apply an ESG integration or impact investing methodology. Moreover, by signing up to the Principles for Responsible Investment supported by the United Nations (UN-PRI), Edmond de Rothschild Private Equity has committed to applying this approach to all of these strategies by 2016 (four signatory strategies in 2014).

Note that in 2015, impact investing strategies (in agroforestry and soil remediation) accounted for 7.6% of the total assets under management at Edmond de Rothschild Private Equity.

Johnny El HachemCEO, Edmond de Rothschild Private Equity

How does the Edmond de Rothschild Private Equity sustainable investment strategy respond to the acceleration in 2015 of the trends towards a more sustainable economy and world?

On the international scene, 2015 has been a pivotal year for the creation of a framework for the social and environmental commitments of the United Nations and for companies. EEdmond de Rothschild Private Equity does not want to settle for a supporting role in this movement; it intends to play a leading role in its field.

Our work involves simultaneously analysing new investment themes with significant impacts and social benefits, searching for innovative investment methods which can offer competitive risk-return ratios, and conducting work internally to moni-tor and measure our actions across all of our operations.

We are happy to have investors who are increasingly sensitive to sustainability issues. However, this means that we have a responsibility to continue providing coherent responses and put forward profitable models which can produce social and environmental benefits. We had the opportunity to present initial feedback from our agroforestry investment strategy during the COP 21 events in Paris, demonstrating its positive impacts on poverty and deforestation. Likewise, based on the positive results of the first seven projects involving the depollution of industrial wasteland, we have a strong basis on which to further develop this strategy. Finally, we are preparing the strategies which in future may enrich our sustainable invest-ment approach in terms of both themes and geography.


SUSTAINABLE INVESTMENT STRATEGIES APPLIED TO ASSETS UNDER MANAGEMENT (AUM) AT EDMOND DE ROTHSCHILD PRIVATE EQUITY

AUM at Edmond de Rothschild Private Equity not covered by ESG strategies

AUM covered by an impact investing strategy

AUM covered by other ESG methodologies

Investissement d'impact - volume d'encours par catégorie d'investisseurs

22.3%

70.0% 7.7%

IMPACT INVESTING – VOLUME OF ASSETS UNDER MANAGEMENT BY CATEGORY OF INVESTOR

Public institutional investors (public banks, development financial institutions, etc.)

Institutional investors (financial institutions, pension funds, etc.)

Private investors (corporate, family o�ce, individual investors)


62%22%

16%

IMPACT INVESTING – BREAKDOWN OF INVESTMENTS BY CATEGORY OF INVESTOR

Public institutional investors (public banks, development financial institutions, etc.)

Institutional investors (financial institutions, pension funds, etc.)

Private investors (corporate, family o�ce, individual investors)


38%34%

28%

DEVELOPMENT OF PRIVATE EQUITY OPERATIONS IN THE AREA OF RESPONSIBLE INVESTMENT

Implementation of a formal ESG

integration process for the infrastructure

strategy

Edmond de Rothschild Private Equity’s signa-ture up to the UN-PRI (entire organisation)

Launch of Private Equity operations within the Group

Creation of an environmental

finance unit within Compagnie Benjamin

de Rothschild

Launch of the soil remediation impact investing strategy

Edmond de Rothschild Investment Partners’

signature of the UN-PRI (Life Sciences

and Mid Cap, Small Cap Europe strategies)

Launch of the agroforestry impact investing strategy

African development strategy’s signature of the UN-PRI and

introduction of ESG reporting and impact

measurements

Private Equity activities combined into a single entity:

Edmond de Rothschild Private Equity

Recruitment of an ESG manager for the

platform

SDG

11 17

SDG

2 13 15 17

SDG

8 10

SDG

9

1989 2006 2008 2010 2012 2013 2014 2015 2016

52

Clean-up and renovation of polluted former industrial sites - SDG 11 17

Bruno FarberPartner and manager at Ginkgo Investment Advisor - Edmond de Rothschild Private Equity

In Europe almost 3 million sites are polluted. Aware of the social and environmental factors to be considered when managing these sites, Edmond de Rothschild Private Equity has chosen to develop an invest-ment strategy based on the ecological and economic rehabilitation of areas affected by the economic crisis and pollution.

The significant added value of these investments benefits all project stakeholders, whether they be owners of polluted property, local autho-rities, developers, construction companies or end users. Our strategy involves acquiring, cleaning up and developing degraded land, by developing long-term environmental risk management models.

The Mont-Saint-Guibert project is a good illustration of this approach. Polluted after 20 years of operation, before falling victim to industrial decline, 16,000 m² of buildings had to be demolished, as well as concrete slabs and the associated historic foundations (2.5 hectares) which covered the land. The former industrial site is now home to an ener-gy-efficient residential development (les Jardins de l'Orne) with 296 properties, including 44 individual homes, car parks, a crèche, and some offices. The work has resulted in 556 direct jobs being created.G4-FS8

Our support for sustainable farming models - SDG 2 13 15 17

Hervé BourguignonPartner and manager at Moringa Partnership - Edmond de Rothschild Private Equity

In response to the deterioration of agricultural land, Edmond de Rothschild Private Equity, in partnership with ONF Internationale (subsidiary of the National Office for French Forests), has implemented an agroforestry investment strategy to improve farmers' income levels while protecting ecosystems. These investments are implemented in Latin America and Africa.

In 2015, we made an initial investment in the company Cafetalera Nicafrance (Nicaragua), which specialises in the production of high quality shade-grown coffee and precious wood. This investment invol-ved reorganising small farms according to agroforestry principles, and it will improve the quality of the production and develop the local market and economy while protecting the environment.

The impact measurement tools implemented in 2015 have shown us that 605 permanent jobs and 207 temporary jobs have been created, for an agricultural production area of 374 hectares (i.e. 22% of the target). Furthermore, these plantations have contributed to the storage of 6,000 tonnes of CO2 equivalent in 2015.G4-FS7 / G4-FS8

OUR CONVICTIONS AND EXPERTISE IN SEIZING SUSTAINABLE INVESTMENT OPPORTUNITIESG4-2


Our support to emerging countries for sustainable economic development - SDG 8 10

Luc Rigouzzo and Laurent DemeyPartners and managers at Amethis Advisory and Edmond de Rothschild Private Equity

Our investment strategy in emerging countries reflects our desire to support these countries in their economic development, while considering social and environmental factors that are in line with our investment models and growth objectives. For our Group, a decision to support the development of emerging countries means believing in the potential of local entrepreneurs. Already present in Africa, our mission is to roll out our investment model to other emerging countries, notably in Asia and Latin America.

We have already supported over fifteen companies throughout Africa, which is now one of the most dynamic growth areas in the world.

By setting demanding targets for economic, social and environmental synergies, driven by exacting ethical standards at all stages of the investment process, our Group aims to support the economic and social development of these countries, enabling them to implement sustai-nable, efficient growth models.G4-FS7

Digital innovation to improve health - SDG 3

The Rothschild family has been committed to the healthcare sector for over a century, and more generally in the area of research and inno-vation. Thanks to this tradition, Edmond de Rothschild Investment Partners* has chosen to develop an investment strategy combining health and biotechnology, with a view to improving diagnostics, treat-ment and care of patients.

Based on a collaboration with strategic partners from industrial and medical backgrounds, our strategy involves financing and supporting 54 companies with innovative projects worldwide. Wishing to develop new, more efficient and comfortable treatment methods for patients suffering from a range of illnesses (cancers, diabetes or heart problems, etc.) our Group has been involved in delivering treatments for glaucoma developed by Novagali, or 3D imaging devices for surgery marketed by EOS Imaging.

In 2015, our strategy was implemented in four projects, three of which involved biotechnology companies (Sanifit, ReViral and GamaMabs) and one specialising in medical devices (Autonomic Technologies) which respond to major medical needs such as infections caused by the respi-ratory syncytial virus, a major cause of death among newborns and the elderly, or even gynaecological cancers. G4-FS7

* Edmond de Rothschild Investment Partners is part of the Edmond de Rothschild Private Equity platform

54

Clients

Stakeholders

Clients

Companies invested

Stakeholders

Strategies and in-house tools

Stakeholders

Companies invested

Stakeholders

IMPLEMENTATION OF OUR THEMATIC AND IMPACT INVESTING STRATEGIES

For each of our investment strategies we take environmental, social and governance (ESG) criteria into account at each key stage of the investment life cycle. We begin by responding to the expectations of our clients, including in the selection and due diligence processes (1), and we then progress to deploying a customised ESG methodology for each strategy (2). Then we accompany investee companies in their approach to sustainable economic development (3) and in the final phase we communicate on the impact of our strategies to our clients and other stakeholders. G4-26 / G4-27 / G4-DMA FS2/FS5 / FS11

The life-cycle of Private Equity investments

1. Harmonising our ESG practices within an internationally recognised framework that our clients can understand

Martin PerrierImpact and Innovation Manager, Edmond de Rothschild Private Equity

What led you to extend your signature of the Principles for Responsible Investment supported by the United Nations-(UN-PRI) to all the strategies of the Edmond de Rothschild Private Equity platform?

One of our characteristics is that we are structured around partnerships with management teams which have each implemented their own ESG integration approach. Some of our strategies have been signed up to the UN-PRI for several years - others have favoured expertise over communication. This collective signature thus responds to a desire for internal harmonisation and gives our clients, who are increasingly sensitive to these issues, a better understanding of our ESG commitment.

What are the implications of signing up to the UN-PRI?

Rather than an end in itself, this signature is for us a means of promoting our social and environmental convictions inter-nally and externally using recognised language and frames of reference. From 2016, this new shared framework for consi-dering ESG risks, opportunities and impacts will apply to all of our investment strategies. At the same time, we want to maintain our pioneering and innovative spirit in the way we define and implement our investment opportunities.

1. Harmonising our

ESG practices within an internationally recognised framework that our clients

can understand

Monitoring, optimising and communicating our

ESG impacts

4.

Supporting invested companies to maximise the creation of economic, environmental and social value

3.

2. Deploying our ESG methodologies on each of our investment strategies

SDG 17


2. Deploying our ESG methodologies within each of our investment strategiesThe example of our transport infrastructure strategy We used the launch of the second transport infrastructure investment strategy as an opportunity to strengthen the ESG integration framework. At every stage of the investment, the decision-making process undergoes economic, environmental and social analysis, notably via:

» an ESG officer within the team

» a sustainability charter setting out the ESG policy

» exclusion criteria for certain types of investment

» questionnaires for each analysis phase of the investments so that ESG risks and impacts can be taken into account

» implementation of specific ESG action plans for each investment

» communication with project stakeholders

» ESG reporting to investors.

4. Monitoring, optimising and communicating our ESG impacts In addition to rolling out the analysis and monitoring of ESG risks to all of Edmond de Rothschild Private Equity, for some of our strategies we have developed tailored methodologies to measure and maximise the opportunities and benefits in terms of environmental and social impact. Each strategy reports on its results periodically to its investors.

3. Supporting invested companies to maximise the creation of economic, environmental and social value Feedback from an entrepreneur

Clément Marie PonçonChairman and CEO, NicaFrance

NicaFrance is the Nicaraguan company which received the first investment of the agroforestry strategy managed by Edmond de Rothschild Private Equity. As the Chairman and CEO of NicaFrance, what value did the investment team add to your consideration of social and environmental issues?

Edmond de Rothschild Private Equity's technical partnership with the CIRAD and the ONFI enables NicaFrance to boost its technical capabilities, explore new areas of agronomic research and new ways of managing forest resources, for exa-mple. Edmond de Rothschild Private Equity's strong ambition for positive environmental and social impact has motivated NicaFrance to position itself as setting a specific example of a project to follow in the context of the COP21 and the 20x20 Initiative of the World Resource Institute. The aim is therefore to mobilise new investment in Nicaragua through the Green Climate Fund or other institutions which can further develop the agroforestry model.

The investment of Edmond de Rothschild Private Equity marks the start of a long-term partnership which enables the pioneering generation of the Ponçon family in Nicaragua to professionalise and internationalise the governance of one of its companies in a dynamic of inheritance planning and transition to the second generation. The family's other companies could ideally then benefit from this learning and strengthened economic, social and environmental governance.

Examples of the impact measurements of our strategies

Soil remediation strategy Agroforestry strategy

2,112housing units built

3,919direct jobs created

0

3 000

6 000

9 000

12 000

15 000

18 000

1 2 3 4 5 6 7 8 9 10

TOTAL CO2 SEQUESTRED

IMPORTANT ISSUES

» CO2 emissions from our energy consumption

» CO2 emissions from employee travel

» Paper consumption

» Waste management

OBJECTIVES FOR 2020

» Reduce the carbon footprint per employee by 15% Reference year 2015: 9.2 tonnes of carbon equivalent/employee

» Reduce the energy consump-tion per employee by 10% Reference year 2014: 6.8 MWh/employee

Situation at the end of 2015: 6.7 MWh/employee (-1%)

» Offset our CO2 emissions for scopes 1 and 2 of the Greenhouse Gas Protocol*Project scheduled to begin in 2016

» Reduce paper consumption per employee by 25%Reference year 2014: 87kg/employee

Situation at the end of 2015: 73kg/employee (-16%)

» Have 100% recycled or FSC/PEFC certified paperReference year 2014: 85%

Situation at the end of 2015: 94% (+11%)

* The Greenhouse Gas Protocol is the most widely-re-cognised and used international standard to measure, manage and report greenhouse gas emissions.

57 MANAGEMENT OF OUR ENVIRONMENTAL IMPACT

The Edmond de Rothschild Group is dedicated to implementing a coherent and relevant environ-mental strategy to gradually improve its performance. Although the Group's direct environmental impact is not comparable to that of industrial companies, the Management wishes to set an example and show that a company's performance is perfectly compatible with a responsible environmental approach.

The Edmond de Rothschild Group's environmental strategy focuses on the one hand on implementing an Environmental Policy which aims to reduce its direct impact on the environment and on the other on its Responsible Investment Policy, which reflects its desire to evaluate and support the environmental initiatives of the companies in which the Group invests, and to make a specific contribution to a positive environmental impact via specialised strategies (see details in the sustai-nable investment section on pp. 36-55).G4-2

OUR APPROACH IN PRACTICEThe Environmental Policy of the Edmond de Rothschild Group applies to all its entities, and focuses on the following commitments:

» compliance with the environmental legal framework in each country in which the Group is active;

» monitoring performance via annual reporting;

» periodical review of results and validation of objectives set by Group management and its legal entities;

» transparent communication on performance and actions implemented, both internally and externally;

» monitoring of trends, good practices (internal/external) and new regulations.

In 2015, environmental objectives for 2020 were set for the Edmond de Rothschild Group based on its 2014 environmental results, feedback from General Services in our main entities (France, Luxembourg and Switzerland) and the benchmarking review of our peers. Thanks to team awareness of sustainability issues, – particularly at Edmond de Rothschild (France), which is subject to several environmental regulations* - the Group is already seeing results which are compliant, or even below industry averages. Our aim is therefore to continue to gradually reduce our environmental footprint in France, Luxembourg and Switzerland, and to raise awareness in and provide support to the rest of the Group. We are also working on an insetting** project to offset some of our emissions by joining forces with the agroforestry impact investing strategy run by Edmond de Rothschild Private Equity. The project will involve contributing to ongoing programmes by financing reforestation projects.

Our results are consolidated either at Group level or at the level of our three parent companies, including all the entities affiliated to them:

Parent companies Group sites for which results are consolidated by the parent company

Edmond de Rothschild (Suisse) S.A. Bahamas, United Arab Emirates, Guernsey, Hong Kong***, Monaco, United Kingdom, Switzerland (Geneva, Lausanne, Lugano, Fribourg and Zurich) and Uruguay

Edmond de Rothschild (France) Germany, Chile, China, Spain***, France (Paris and the provinces), Hong Kong***, Israel*** and Italy

Edmond de Rothschild (Europe) Belgium, Spain***, Israel***, Luxembourg, Portugal

MANAGEMENT OF OUR ENVIRONMENTAL IMPACT

* Particularly the following regulations: Article 75 of the Grenelle 2 law on greenhouse gas emissions, Article 225 of the Grenelle 2 law on social and environmental transparency obligations and the law of 16 July 2013 on energy audits. ** The term “insetting” refers to a company's carbon emissions reduction programmes in place within its own supply chain, as opposed to offsetting programmes, which are decoupled from the company's operations. *** For countries associated with two different parent entities, environmental impact was attributed according to the square metres occupied by the entities concerned.

58

OUR GROUP’S ENVIRONMENTAL PERFORMANCE IN 2015For its second year of environmental reporting, the Edmond de Rothschild Group continued its efforts to improve the quality of the data reported and to extend the reporting scope. For 2015, the percentages of the population covered, by subject, are as follows:

» energy: 100% (95% in 2014)

» business travel: 88% (83% in 2014)

» work-home travel: 89% (82% in 2014)

» paper consumption: 100%: (99% in 2014)

» waste: 100%* (83% in 2014)

» water: 100%**.

This work on the quality of our data also led us to review some of our results for 2014. The 2014 indicators published in this report now represent our reference for our environmental targets, with the exception of our carbon footprint (see expla-nation below).G4-22 /G4-23

GREENHOUSE GAS EMISSIONSSince 2010, Edmond de Rothschild (France) has had the obligation to perform an annual Bilan Carbone® to assess and limit its impact in terms of CO2 emissions. In five years, this Group entity has managed to reduce its carbon footprint by around 20%.G4-EN19

In 2014, the Edmond de Rothschild Group acquired a reporting tool enabling us to assess our carbon footprint using data collected from all our entities. Our footprint for 2015 shows an increase of 34%, which is mainly due to improvements made to the reporting process. The two areas with the most significant increases are those with the largest impact on the carbon footprint, i.e. work-home travel (+150%) (see “employee travel” section), and the purchases of goods and ser-vices (+48%) – which now covers all purchasing categories. Therefore, in order to improve our performance, we will use 2015 as the reference year for our 2020 carbon footprint targets.

We have chosen to be exhaustive in the items included in our scope 3 and to use the most exacting standards. Therefore, scope 3 emissions represent 90% of our emissions, in areas which are difficult to tackle from an environmental point of view.

ENERGYOur energy consumption has increased 3% as an absolute value, but the average consumption per employee fell slightly by 1%. This relative decrease was mainly possible thanks to several projects carried out in 2015 by General Services at our main entities.

Electricity represents 65% of the energy we use, and 56% of that electricity comes from renewable sources. This high percentage is achieved thanks to the activities of two of our main entities, Geneva and Luxembourg, using only energy from renewable sources.G4-EN3

EMPLOYEE TRAVELPlane journeys are the most common form of transport for our employees’ business trips (70% of the kilometres travelled were by plane). This is mainly due to the nature of our operations, because the teams in our different lines of business have to travel a lot to meet their clients. The Group's travel policy encou-rages employees to consider the following factors before making a business travel request: cost, environmental impact, work-life balance. It is recommended that existing video- or teleconference systems are used for in-house meetings and that the cheapest, most CO2-efficient options are used when travel is unavoidable (including favouring public transport over hire cars or taxis). In 2015, 61% of our entities already had video conferencing facilities (covering 97% of employees).

56% of electricity purchased is

renewable

7,842 km average number of km

travelled by employees for professional purposes

94% of paper used by the Group

is recycled or FSC/PEFC certified

* For waste, 15% of the data is estimated; where no data was available, we have assumed that no sorting system was in place. ** For water, 12% of the data was estimated based on Group averages.


Our carbon footprint from home to work travel increased significantly (+150%) because we have improved the reliability of our data. Kilometres are calculated using the address of each employee, and the percentages for each mode of transport are estimated based on national or regional statistics. G4-EN30

PAPER CONSUMPTIONConcerning office use, 78% of the paper used by the Group is FSC (Forest Stewardship Council) or PEFC (Program for the Endorsement of Forest Certification schemes) approved, and 16% is recycled paper. The increase in the proportion of appro-ved paper is mainly thanks to our Geneva entity, which now uses 100% FSC paper. Paper consumption fell from 87kg to 73kg per year, per employee - a 16% decrease. We hope that this trend will continue in 2016 and 2017 with the launch of aware-ness-raising campaigns and plans to optimise printing.

The Group's Communications department is setting an example by publishing all brochures and external communications documents on FSC or PEFC certified paper. Further, in 2015, steps were taken to eliminate wasteful practices and reduce printing, resulting in a 34% reduction in paper consumption.G4-EN1 / G4-EN2

WASTE MANAGEMENTIn the services sector, waste management and reporting are complex, as they are often included in the charges of the various buildings or local councils in which the different entities are located. Therefore, we changed our approach in 2015 and now we only monitor the percentage of employees in an entity with a waste sorting system. We continue to monitor the weight of our waste paper, which is our primary source of waste. In 2015, we noted that the decrease in the weight of paper waste recycled is equivalent to the drop in weight of paper used (-10% and -12% respectively).

As our electronic waste has the heaviest environmental impact, we also work to ensure responsible processing of our compu-ters at the end of their useful life. 78% of our electronic waste is recycled by specialised companies which certify the deletion of our data. The other 22% is donated to charitable associations or schools.G4-EN23

In France, large companies must now undergo an energy audit every four years as a result of the DDADUE law (Diverses Dispositions d'Adaptation au Droit de l'Union Européenne). In 2015, the General Services of Edmond de Rothschild (France) were responsible for organising and supervising this audit. Muriel Philippe, Project Manager and Christophe Voyeaud, Management Controller, who led the work on this audit, share their conclusions on this process.

The audit was to cover the buildings with the highest energy consumption, representing over 65% of our total consumption. The three buildings chosen were from the Haussmann era, so it was no surprise that their energy performances were rather “basic”, if not “energy hungry”, notably due to the characteristics of the buildings themselves.

However, regarding the list of recommendations that came out of the audit, the action that would enable the largest reduc-tion in CO2 emissions - 31 tonnes of carbon equivalent per year - was already planned and being implemented. It involved replacing two gas boilers with condensing boilers. Concerning the other points, many have already been included in the renovation work we have been doing every year for the last four years: improving insulation with lining for the walls and double glazing, replacing lamps with LEDs, fitting movement detectors in the toilets and raising awareness among employees. For buildings which the Bank does not own, we ask lessors to carry out work such as insulating the windows or improving climate control systems.

Muriel PHILIPPEProject Manager, Edmond de Rothschild (France) General Services

Christophe VOYEAUDManagement Controller, Edmond de Rothschild (France) General Services

60

EDMOND DE ROTHSCHILD GROUP ENERGY CONSUMPTION (IN MWH AND % BY ENERGY TYPE) - G4-EN3

72% 70%

55% 52%66% 66%

66% 65%26%29%

44% 47%

25% 22%

30% 30%

2%1%

1% 1%

9% 12%

4%5%

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

2014 2015 2014 2015 2014 2015 2014 2015


Other energy (cold, steam, heating oil) Natural gas Electricity

EDMOND DE ROTHSCHILD GROUP BUSINESS TRAVEL (IN KM AND % BY MODE OF TRANSPORT) - G4-EN30

2015

2014

2015

2014

2015

2014

2015

2014

Train Taxi Car Plane

12%

14%

3%

1%

13% 71%

66%

48%

49%

91%

92%

65%

71%14%

0 5 000 000 10 000 000 15 000 000 20 000 000 25 000 000

EdR

(Sui

sse)

EdR

(Eur

ope)

EdR

(Fra

nce)

EdR

Grou

p

19%

6%

42%

41%

10%

12%22%

ADDITIONAL ENVIRONMENTAL INDICATORS 2014 2015

Waste recycling systems: % of employees with access to

an aluminium recycling system - 58%

a cardboard recycling system - 61%

a glass recycling system - 37%

an organic waste recycling system - 26%

a paper recycling system - 77%

a plastic recycling system - 61%

Paper recycling

Paper waste recycled (in tonnes) - G4-EN23 263 236

Water consumption

Water consumption (in m3) - 119,268

PERCENTAGE OF ELECTRICITY CONSUMPTION FROM RENEWABLE ENERGY IN 2015 - G4-EN3


Electricity from renewable sources Electricity from a non-renewable source

25%

13%

86%

44%

75%

87%

14%

56%

EDMOND DE ROTHSCHILD GROUP PAPER CONSUMPTION PER PAPER CATEGORY (IN TONNES AND % PER CATEGORY) - G4-EN2

72% 70%

55% 53%66% 66%

66% 65%

0

50

100

150

200

250

2014 2015 2014 2015 2014 2015 2014 2015


Other paper Recycled paper FSC or PEFC certified paper

64%

92% 99%

99%43% 42%

71% 78%2%

48% 47%

13%16%

36%

6%1%

1%

9% 11%

15%

6%

OUR EMPLOYEES’ ENVIRONMENTAL IMPACT 2014 2015

CO2 emissions per employee and year (t.eq.CO2) 7.1 9.2

Energy consumption per employee and year (MWh) - G4-EN5 6.8 6.7

Paper consumption per employee and year (kg) 87 73

Water consumption per employee and year (m3) - 43

Number of km per employee and year (professional travels) 7,295 7,842

See page 58 for the list of entities affiliated to the parent companies of the Group and pages 58-59 for the comments associated with the data published on pages 60-61.


22,960 t.eq.CO2

Home-work travel (26%)

Air travel (20%)

Other professional travel (6%)

IT equipment (13%)

Products & services (23%)

Other (paper, waste, freight, water) (2%)

16,602 t.eq.CO2

Home-work travel (14%)

Air travel (27%)

Other professional travel (6%)

IT equipment (15%)

Products & services (21%)

Other (paper, waste, freight, water) (3%)

1,327 t.eq.CO21,258 t.eq.CO27% 5%

7%5%

86% 90%

1,349 t.eq.CO21,333 t.eq.CO2

2014 2015

Scope 3 - G4-EN17

Scope 2 – G4-EN16

Scope 1 – G4-EN15

OUR ACTIONS TO PROMOTE BIODIVERSITYThe Group is committed to contribute to the protection of bees, which have an essential role to play in maintaining balanced ecosystems. There is a strong symbolic value associated with this commitment, which embodies our desire to preserve biodiversity.

Since 2012, three beehives have been installed in the immediate vicinity of one of the Edmond de Rothschild (France) buildings in Paris. Some 90,000 bees thus benefit from the floral diversity in Paris. A fourth beehive will be installed in 2016 which will also house 30,000 bees.

In 2015, the Israel branch also signed up to this commitment by working with a local beekeeper who collects honey for the Group.

Over the year, 480 kg of honey was gathered and almost 2,000 pots have been given to clients all over the world. The Group’s intention in doing this is to raise awareness about the importance of this subject.

CARBON FOOTPRINT OF EDMOND DE ROTHSCHILD GROUP (IN TONNE OF CO2 EQUIVALENT)*

* Our carbon footprint has been calculated according to the Greenhouse Gas Protocol and standardISO-14064/65.

IMPORTANT ISSUES

» Stakeholder engagement

» Local community engagement

» Philanthropic activities

OBJECTIVES FOR 2020

» Review the mapping of the Group's main stakeholders and the list of stakeholder engage-ment activities every year

» Identify and participate in the most relevant initiatives and events linked to sustainable investment

» Implement a process of eva-luation of and engagement with suppliers as part of our Responsible Purchasing Policy

» Implement the Community Engagement Charter and encourage sites to implement philanthropic programmes

KEY INDICATORS

» Active member of 10 sustai-nable investment initiatives

» 61 employees involved in phi-lanthropic programmes

» 48 people and 11 companies have benefited from these programmes

63 OUR COMMITMENT FOR A SUSTAINABLE SOCIETY

In an interconnected world faced with major societal and environmental challenges, effective solu-tions require individual and collective efforts. The Rothschild family has always been driven by the passion for entrepreneurial activity and innovation in the service of economic and social progress.

This passion is reflected in the way it conducts its activities, as well as in its commitment to society as a whole. In both the financial sector and in the area of philanthropy, the Rothschild family and the Group have the strong intention to be change-makers.

The Edmond de Rothschild Group is involved in several initiatives to promote sustainable development and invest-ment. It also wishes to perpetuate the philanthropic legacy and the humanist values of the Rothschild family by offering its employees the possibility to contribute to projects sup-ported by the Edmond de Rothschild Foundations.

ENGAGING WITH OUR STAKEHOLDERSEngaging with our stakeholders was identified as one of our material issues as a result of the materiality exercise undertaken in 2014. We have touched on this transversal theme throughout our report because we are convinced that consideration of the expectations and interests of our stakeholders is an essential condition for reaching our targets. As Ariane de Rothschild regularly points out, it is through partnerships between stakeholders whose activities are complementary that we will be able to rise to the current challenges facing our society (climate change, dialogue between peoples, etc.).

In this section we will focus on our commitment in the field of sustainable investment, one of our priority issues, as well as our commitment to our suppliers, for whom we are formalising a Responsible Purchasing Policy.

COLLABORATION WITH SUSTAINABLE INVESTMENT STAKEHOLDERSIn Switzerland and France, the Edmond de Rothschild Group is involved in a number of finance sector initiatives to sup-port and promote sustainable investment and is an active member of different organisations (see table to the right). Since its creation in 2014, we have been one of the founding members of Swiss Sustainable Finance* (SSF), which was set up to integrate the principles of sustainability into the products and services of the Swiss financial sector and strengthen the country’s position in the field of sustainable finance. SSF brings together all the major players from the financial sector and also from the academic world, the public sector and other organisations active in this domain. The Group's Sustainability Director co-leads a working group within SSF to develop training material for investment professionals.

The purpose of this training is to introduce investment professionals to the vast subject of sustainable investment and raise awareness of the main trends and the role these key actors can play in their daily work. This training course will be finalised in 2016 and will be available to members of

SSF. Further, a version of the material will be made available to the public in order to reach a wider audience.

Edmond de Rothschild Asset Management (France) sup-ports research conducted by the Chair of Sustainable Finance and Responsible Investment of the Ecole Polytechnique – Université Paris-Saclay and the Toulouse School of Economics. Since 2013, it has also published the “SRI Chronicles”, a magazine which reports on what’s going on in the world in terms of sustainable and responsible investment. Each edition puts forward the academic pers-pective on SRI, featuring a researcher’s point of view on current topics. Subjects covered in 2015 included:

“Ethics and the market”, “Carbon intensity performance of SRI funds” and “The property market of the future: new priorities”.

With the same intention of promoting SRI to a wider audience, a presentation on “Companies and the sustaina-bility challenges adopted by the Millennial generation”, was delivered during the Ateliers d’experts (expert workshops), an event attended by over 200 investors on 8 September 2015.

Finally, in September 2015, Edmond de Rothschild Asset Management (France) became a signatory to the Montreal Carbon Pledge, an initiative supported by the UN-PRI of which this entity has also been a signatory since 2010. This involves a commitment to monitor and publish the carbon footprint generated by its investments every year, gradually increasing the scope over time (see pages 46-47, for more information). G4-16 / G4-26 / G4-27

Participation of the Edmond de Rothschild Group in professional and sector-based initiatives** - G4-15 / G4-16

› Signatory of the United Nations Principles for Responsible Investment (PRI)***

› Signatory of the Montreal Carbon Pledge

› Member of the United Nations Environment Programme Finance Initiative (UNEP FI)

› “Industrial Partner” of the World Economic Forum

› Member of Swiss Sustainable Finance

› Member of Sustainable Finance Geneva

› Member of the French Social Investment Forum (SIF)

› Member of the Association Française de la Gestion Financière (French Asset Management Association - AFG)

› Affiliate member of the European Sustainable Investment Forum (Eurosif)

› Support for the Chair of Responsible Finance and Sustainable Investment at the Ecole Polytechnique in Paris and the Toulouse School of Economics

› Partner of Friends of the Countryside****

OUR COMMITMENT FOR A SUSTAINABLE SOCIETY

* For further information about Swiss Sustainable Finance, visit their website: www.sustainablefinance.ch ** This table does not mention our membership and participation in banking and financial associa-tions, with the exception of the Association Française de la Gestion Financière, with which we are working on the subject of responsible investment. Edmond de Rothschild Asset Management (France) sits on the AFG's SRI Committee. *** Three Group entities have signed the UN-PRI covering 11 investment strategies. For more information on our commitment to the UN-PRI, see the section “Innovation in sustainable and responsible investment”. **** Network of land owners, entrepreneurs and decision-makers from all over the European Union who defend rural private property through innovative and sustainable practices.

64

COLLABORATION WITH OUR SUPPLIERSSuppliers are an important category of stakeholders for all companies. Maintaining good relations with them has reper-cussions on the quality of products and services provided to clients. The way in which suppliers are treated can also have an impact on the reputation of the company.

For all of these reasons, we are working on a Responsible Purchasing Policy which formalises what we expect from our suppliers, in particular in terms of ethics, social and environmental responsibility, and also our commitments to them in how we conduct our business. In 2016, our French entity will pilot the formalisation and implementation of this policy before it is rolled out more widely in Switzerland and Luxembourg. However, at the end of 2015, an initiative was already in place with the definition of a responsible purcha-sing charter for canteens in Geneva, Luxembourg and Paris. This charter will be implemented in 2016 and aims to favour healthy, seasonal products grown/reared in an environmen-tally responsible way, and to support the local economy in a socially responsible way. G4-26

SUSTAINABILITY REPORTING AND DIALOGUE WITH OUR STAKEHOLDERSThe voluntary publication of a sustainability report for the Edmond de Rothschild Group is part of our drive to engage with our stakeholders. The presentation of our objectives for 2020 and our current performance reflect our intention to communicate our progress in these strategic areas in a transparent manner. This document also allows us to enter into dialogue with our key stakeholders regarding sustaina-bility issues of common interest. If you, as a stakeholder of the Group, have feedback on this report or a subject related to sustainability which you would like to share with us, please contact:

Kate Cacciatore 18 Rue de Hesse - 1204 Geneva [email protected]

OUR EMPLOYEES’ COMMITMENT TO PHILANTHROPIC PROGRAMMESThe Edmond de Rothschild Foundations are family foun-dations, and are managed completely independently from the Edmond de Rothschild Group; however, synergies are sometimes developed between the two so that their respec-tive skills and experience can benefit specific projects and programmes. For more information on the Foundations, see pages 66-71.G4-SO1

For the Group, giving our employees the opportunity to contribute to a more inclusive and collaborative world reinforces the importance of citizenship and well-being at work. At the same time, sharing our employees’ skills and knowledge with social entrepreneurs or people facing diffi-culties in accessing employment is another way of using our know-how for the benefit of society.

In 2015, the Group continued its involvement in several programmes developed by the Edmond de Rothschild Foundations.

“At the first Town Hall meeting we held in London in 2015, the idea of introducing community engagement initiatives was put forward. This seemed to me an excellent opportunity to reinforce teamwork among our employees. A survey was launched to identify employee expecta-tions and preferences, and we were pleasantly surprised by the amount and quality of the feedback. 13 employees were able to spend a day (or half day) with pupils from a school in a disadvantaged area of London, to help them think about their future careers and train them in inter-view techniques. The initiative will be repeated in 2016 and we are also looking at holding a day for all of our employees on an environmental topic.”

Eric CouttsCEO of Edmond de Rothschild (UK)

MOZAÏK RH PASSERELLES PROGRAMMEFor the fifth consecutive year, Edmond de Rothschild (France) has supported the professional integration pro-gramme PasserElles, set up by the non-profit recruitment agency, Mozaïk RH, and initially funded by the Edmond de Rothschild Foundations. This programme, aimed at young female graduates from different backgrounds looking for employment, combines collective workshops, individual coaching by recruitment professionals and one-to-one mentoring by an employee from one of Mozaïk RH’s partner companies.

For further information on the implementation of the pro-gramme within Edmond de Rothschild (France) in 2015, see page 54 of the Edmond de Rothschild (France) annual report*.G4-SO1

OPEJThe OPEJ-Baron Edmond de Rothschild foundation (Œuvre de Protection de l’Enfance et de la Jeunesse) was set up in 1944 to help orphans of the Second World War.

The OPEJ now works with the authorities to help children and young people aged 3 to 21, who have suffered mistreat-ment, abandonment, abuse and deprivation, to rebuild their lives, assume their identity fully and find their place in society. It focuses on restoring and maintaining family ties, supporting families which can no longer meet their child-ren's needs.

In 2015, employees of Edmond de Rothschild (France) were invited to sponsor a young person from the OPEJ for one year. This sponsorship is a way of complementing the work of educators by giving the sponsored young person an outside contact who is concerned for their future, outside the educational sphere of the OPEJ.

This first cycle of the programme was successful in France, as the number of employees who signed up was higher than the number of young people needing support. 20 sponsors were involved.

For further information about our involvement with the OPEJ, read the annual report of Edmond de Rothschild (France)* (page 54).

UnLtd SPAINThe Edmond de Rothschild Foundations and UnLtd Spain have partnered to create CRECE, a programme to support the development of companies with a positive social or environmental impact.

* This report is available online: http://www.edmond-de-rothschild.com/site/France/en/private-banking/annual-reports

mailto:[email protected]

65 OUR COMMITMENT FOR A SUSTAINABLE SOCIETY

CRECE offers professional support based on a rigorous methodology, first developed in the UK and since then suc-cessfully deployed in a dozen countries. In Spain, it is aimed at social entrepreneurs with excellent performance who will benefit from:

» specialised training

» pro bono legal and communication support

» financial and strategic support from Edmond de Rothschild (Europe) bankers

» €10,000 capital donation

In 2015, the five companies selected in 2014 (Handiway, IctusCare, MENSOS, Mimökki and Smileat) continued to benefit from the skills and knowledge of eight employees from Edmond de Rothschild branches in Spain. The six beneficiaries of the 2016 programme were also revealed at the end of 2015 and will be supported for one year by 11 employees. G4-SO1

SCALE UPThe Edmond de Rothschild Group also continued its partici-pation in the Scale Up programme, created by the Edmond de Rothschild Foundations and the ESSEC Business School to support the development of businesses that have a positive impact on society or the environment. Selected companies are sponsored for one year by certain Group employees, who share their expertise on strategy, finance, fundraising and communication. In addition to professional mentoring, Scale Up also offers structured educational opportunities and pro bono legal assistance, giving the company’s leadership the tools necessary to define, imple-ment and finance their growth.

Now in its 5th edition, the programme, which combines economic impact and social impact, has unique visibility in France. To further reinforce its status, since 2015 the programme has only been open to companies (SA, SAS, SARL) with financing requirements of over €200,000. The

six companies selected by this programme in 2015 – AfB, The Green Link, Phenix, Simplon.co, Gourmet Spiruline and Ti’Hameau – receive support from Group experts in business consultancy, private equity and asset management.

For further information about this programme, see our website: http://stories.edmond-de-rothschild.com/Pages/en/scale_up.html, and read the annual report of Edmond de Rothschild (France)* (page 54).G4-SO1

“My aim is to understand the strategy, the vision of Frédéric Bardeau and to express it clearly, without distorting Frédéric's entrepreneurial spirit but at the same time making it comprehensible to investors.

The thing I like about the Scale Up programme is that you come across people who are quite different and it's the richness of these personalities that I find rewarding. Their vision of the business world is very different and engaging.”

Christian MenardMember of the Edmond de Rothschild (France) Corporate Finance Management Board and mentor to Simplon.com, an SME led by Frédéric Bardeau

“As a social entrepreneur, it's rare to have the opportunity to meet pro-fessionals in mergers-acquisitions with a strong financial background. It's true that there's a bit of a culture shock, but apart from that, it's just people meeting. Christian's kindness and uncompromising attitude are priceless. Having people more competent than us, who are not closely involved and can bring a critical outlook is really strategic for the future of the company, so the Scale Up programme was perfect for us.”

Frédéric BardeauCEO, Co-founder of Simplon.co

* This report is available online. **The UnLtd Spain programme used to be held over an academic year (September to September), but is now held over a calendar year. So in 2015, we had the same participants as in 2014.

OUR INVOLVEMENT IN THE VARIOUS COMMUNITY ENGAGEMENT PROGRAMMES - G4-SO1

2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 Total since the start of the programme

PasserElles programme

Number of mentors - 15 22 31 23 91

Number of mentees - 11 22 32 28 93

Number of young women employed - 6 15 8 9 38

Scale Up programme -

Number of companies selected for the programme 3 5 5 8 6 27

Number of employees involved in supporting these companies

4 5 7 14 10 40

UnLtd Spain** programme -

Number of companies selected for the programme - - - 5 5* 5

Number of employees involved in supporting these companies

- - - 8 8* 8

OPEJ

Number of mentors - - - - 20 20

Number of mentees - - - - 20 20

Philanthropy is part of the Rothschild family traditions, just like banking. With a direct reporting line to the family, the Edmond de Rothschild Foundations are managed completely independently from the Group. With the focus firmly on impact and effectiveness and with a humanist spirit, the foundations take a strategic approach to philanthropy.

By taking on a professional nature, philanthropy becomes a powerful tool to take bold action, to innovate and to build. It is a won-derful laboratory to test and incubate new ideas. The Foundations help to find solutions to today’s challenges and to inspire a more human capitalism.

The Edmond de Rothschild Foundations create a virtuous ecosystem by developing many partnerships and creating four clusters of excellence:» Arts » Entrepreneurship» Health» Good practices in philanthropy

In all of these domains, the Foundations are investing in women and men who consider the significant changes in the world as a call to change along with it.G4-SO1

In 2015, more than 50 projects were supported and developed by the Foundations. A few examples are presented here.

THE EDMOND DE ROTHSCHILD FOUNDATIONS

“The Foundations are social innovators, incubators for ideas, drivers of responsibility and a vehicle for the Rothschild family values. Our approach is to build bridges between the public and private spheres, and with civil society and multilateral bodies; this secures the longevity of our projects and their change of scale. And our actions are driven by three essential values: an insistence on social, cultural and religious inclusion; citizen engagement; and the many links forged by this philanthropic network.”

Firoz LadakCEO of the Edmond de Rothschild Foundations

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68

FOCUS ON IPDEV2 - THE AMBITION TO CREATE 10 HIGH SOCIAL IMPACT INVESTMENT FUNDS IN AFRICAAware of the fact that SMEs generate many jobs and promote the reorientation of the market towards the emerging middle classes, as well as fostering political and economic stability, the Edmond de Rothschild Foundations and Edmond de Rothschild Private Equity decided to bring their philanthropic skill and financial expertise to the company Investisseurs & Partenaires (I&P) by launching the first impact investment fund in Africa. The 10 funds of IPDEV2 aim for full integration in the local economy and will therefore be managed by local teams and partly financed through local resources. African investors will complement the financial support they can offer with their strong knowledge of local issues and ecosystems. Ultimately, the project is expected to finance 500 new companies and start-ups, creating over 15,000 jobs. In November 2015, an initial closing was signed for 10 million euros with around fifteen investors (foundations, internatio-nal sponsors and private individuals). The latter demonstrate their commitment to supporting and promoting entrepre-neurship and economic and social development in Africa, as part of a long term approach.G4-SO1

For more information, see also:http://www.ietp.com/fr/content/paul-derreumaux-pr%C3%A9sente-le-projet-ipdev2-interview-dans-business-africa

http://www.ietp.com/fr/content/paul-derreumaux-pr%C3%A9sente-le-projet-ipdev2-interview-dans-business-africa

69

FOCUS ON IER ACTE – FOR GREATER DIVERSITY ON FRENCH STAGESIer Acte is a comprehensive training program for stage actors, aged 18-26, from culturally and socially diverse back-grounds. It targets young talents who have encountered some form of discrimination on their path to become professio-nal actors.The program is an initiative of the Edmond de Rothschild Foundations and the Fondation SNCF (French rail company) in collaboration with La Colline – Théâtre national, Théâtre national de Strasbourg and the Dance Conservatory of Grenoble. 20 young actors, chosen by a rigorous selection process, participate in a series of master classes, encoun-ters, collective workshops and public performances to help them (re)gain self-confidence and self-esteem – essential when auditioning for the national drama schools or professional casting trials. Ier Acte also provides unparalleled access to a community of established professionals in the theatrical domain.In its third edition, Ier Acte strives for:-Greater diversity on stage, in the audience, and in national drama schools, reflecting France’s multicultural society;-Actors of diverse social and cultural backgrounds who are coached to become positive, inspiring role models;-Greater public awareness about diversity through the development of an ecosystem of impactful, inclusive initiatives in the arts.Through this audacious program, the Edmond de Rothschild Foundations continue to affirm the central role arts play in encouraging dialogue between cultures and an inclusive society.G4-SO1

For more information, visit: www.ateliers-1er-acte.tumblr.com

http://www.ateliers-1er-acte.tumblr.com

70

FOCUS ON FONDATION OPHTALMOLOGIQUE ADOLPHE DE ROTHSCHILDThe Fondation ophtalmologique Adolphe de Rothschild in Paris is one of France's best eye and neurosurgery hospitals and has an international reputation. Established in 1905 according to the last wishes of Baron Adolphe de Rothschild, it is now a private, non-profit healthcare establishment open to all and which works in the collective interest. Its strategy has always had two dimensions: quality care and medical research, in line with the family's values of multicultural openness, excellence and sharing.Now the Foundation works and is increasingly engaged on an international level, particularly in these two areas:-partnerships between the hospital and universities to develop practitioner exchanges in a training context, teaching programmes and clinical research cooperations. Three programmes are currently underway with the university oph-thalmologic department of Hôpital Jules-Gonin in Lausanne, the university hospitals of Los Angeles and the Hebrew University of Jerusalem;-collaborative initiatives in developing countries, mainly to boost expertise in treating neurological and ophthalmologic disorders, development of public health programmes and treatment of low-income patients and children with these types of medical needs. The Foundation works mostly in sub-Saharan Africa, where the needs are particularly pressing and the infrastructure lacking. With this in mind, it plans to contribute in the near future to a particularly innovative organisation supported by the Vision for a Nation NGO to detect sight problems using a smartphone app, developed by the London start-up Peek Vision.The Fondation Adolphe de Rothschild also remains active in France, opening the affiliated Centre Edmond de Rothschild in 2015. This is the very first health centre specialising in ophthalmology and aims to diagnose and monitor patients. It is intended to be accessible to all and therefore does not charge excess fees. It has also implemented a PASS for the full treatment of low-income patients.G4-SO1

For more information, see: www.fo-rothschild.fr/en

http://www.fo-rothschild.fr/en

71

To discover all the projects supported and developed by the Edmond de Rothschild Foundations, see:

www.edrfoundations.org

FOCUS ON A NEW SOCIAL IMPACT BOND IN EDUCATIONIn Israel, as in OECD countries, the drop-out rate from higher education is 30% on average, and can even reach 40% among certain groups of students in faculties of engineering, computer science and exact sciences. This situation is the cause of financial losses for academic institutions which do not receive the expected tuition fees or the contribu-tions paid by the Israeli state when the students graduate. In response, Social Finance Israel (SFI) and the Rothschild Caesarea Foundation (RCF)* announced in 2015 the launch of social impact bonds, in partnership with the University of Haifa and the University College of Tel Aviv-Yafo. The aim is to reduce the drop-out rate drawing on the RCF's exper-tise in higher education and the participation of the Alumah association, which will support students identified as being the most likely to drop out, at a pedagogic, economic and personal level. This project is expected to last eight years, monitoring 300 students and with 3.8 million NIS (around 1 million CHF) which will be financed by the RCF, Leumi Bank and the Beyond Impact Investment Company. If, and only if, at the end of this project, the drop-out rate decreases by 35%, part of the profit obtained by the academic institutions will be paid back to investors at a rate not exceeding 10%.The expected social impacts of this innovative financial product include: a better chance of accessing employment for the students concerned, reduction of social inequalities in Israeli society and stimulation of economic growth via the high-technology sector. G4-SO1

For further information, see also: www.socialfinance.org.il/social-impact-bonds/44/higher-education

* The Rothschild Caesarea Foundation is one of the 10 Edmond de Rothschild Foundations.

72

GENERAL STANDARD DISCLOSURES

General Standard Disclosures

Page Number (or Link) External Assurance

Link with the United Nations Global Compact Principles

STRATEGY AND ANALYSIS

G4-1 6, 7 No

G4-2 12, 14, 15, 21, 24, 46, 52, 57 No

ORGANIZATIONAL PROFILE

G4-3 4 No

G4-4 9 No

G4-5 4 No

G4-6 4, 9 No

G4-7 4 No

G4-8 9, 10 No

G4-9 9, 34

G4-10 34, 35 Principle 6

G4-11 35 No Principle 3

G4-12 10 No

G4-13 4 No

G4-14 Given the nature of our activities, the principle of precaution is not applicable to our organisation. No

G4-15 7, 46, 63 No

G4-16 63 No

IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES

G4-17 4 No

G4-18 4, 13, 16 No

G4-19 14, 15 No

G4-20 4, 22, 30 No

G4-21 15 No

G4-22 58 No

G4-23 4, 13, 30, 58 No

STAKEHOLDER ENGAGEMENT

G4-24 16 No

G4-25 16 No

G4-26 16, 24, 54, 63, 64 No

G4-27 13, 16, 23, 24, 41, 44, 48, 54, 63 No

REPORT PROFILE

G4-28 4 No

G4-29 4 No

G4-30 4 No

G4-31 4, 64 No

G4-32 4 No

G4-33 4 No

GOVERNANCE

G4-34 19 No

G4-35 19 No

G4-36 19 No

G4-38 19, 33 No

G4-42 19 No

G4-45 19 No

G4-46 19, 21 No

G4-47 19 No

ETHICS AND INTEGRITY

G4-56 11, 23, 28 No Principle 10

G4-57 21, 23 No

GRI G4 CONTENT INDEX


SPECIFIC STANDARD DISCLOSURES FOR MATERIAL ASPECTS

DMA and Indicators Page Number (or Link) Omission(s) External Assurance

Link with the United Nations Global Compact Principles

CATEGORY: ECONOMIC

MATERIAL ASPECT: ECONOMIC PERFORMANCE

G4-DMA 9, 10, 12, 13 No

G4-EC2 13, 25, 46 No Principle 7

CATEGORY: SOCIAL

SUB-CATEGORY: LABOUR PRACTICES AND DECENT WORK

MATERIAL ASPECT: EMPLOYMENT

G4-DMA 14, 27, 64 No

G4-LA1 30, 34 Principle 6

MATERIAL ASPECT: TRAINING AND EDUCATION

G4-DMA 14, 27, 30 No



MATERIAL ASPECT: DIVERSITY AND EQUAL OPPORTUNITY

G4-DMA 14, 27, 32 No

G4-LA12 32, 33, 35 Principle 6

SUB-CATEGORY: SOCIETY

MATERIAL ASPECT: ANTI-CORRUPTION

G4-DMA 14, 18, 21, 22, 23 No

G4-SO4 22, 23 Principle 10

SUB-CATEGORY: PRODUCT RESPONSIBILITY FOR THE FINANCIAL SERVICES SECTOR

MATERIAL ASPECT: PRODUCT PORTFOLIO

G4-DMA 14, 24, 40, 42, 43, 44, 47, 48, 49, 54, http://www.edmond-de-rothschild.com/SiteCollectionDocuments/asset-management/isr/EDRAM-responsible-investment-policy.pdf

No

G4-FS7 39, 52, 53

G4-FS8 39, 52

MATERIAL ASPECT: ACTIVE OWNERSHIP

G4-DMA 14, 42, 43 http://www.edmond-de-rothschild.com/SiteCollectionDocuments/asset-management/isr/EDRAM-voting-policy.pdf (Voting policy)

No

G4-FS10 42, 43 No

G4-FS11 38, 39, 42, 54

SPECIFIC STANDARD DISCLOSURES FOR NON-MATERIAL ASPECTS

CATEGORY: SOCIAL

SUB-CATEGORY: LABOUR PRACTICES AND DECENT WORK

NON-MATERIAL ASPECT: OCCUPATIONAL HEALTH AND SAFETY

G4-LA6 35 No

SUB-CATEGORY: SOCIETY

NON-MATERIAL ASPECT: LOCAL COMMUNITY

G4-SO1 64, 65, 67, 68, 69, 70, 71 No Principle 1

CATEGORY: ENVIRONMENT

NON-MATERIAL ASPECT: MATERIAL

G4-EN1 59, 60 Principle 7 / Principle 8

G4 – EN2 59, 60 No Principle 8

NON-MATERIAL ASPECT: ENERGY

G4-EN3 58, 60 Principle 7 / Principle 8

G4-EN5 60 No Principle 8

NON-MATERIAL ASPECT: GHG EMISSIONS

G4-EN15 61 No Principle 7 / Principle 8



G4-EN19 58 No Principle 8

NON-MATERIAL ASPECT: WASTE

G4-EN23 59, 60 No Principle 8

NON-MATERIAL ASPECT: TRANSPORT

G4-EN30 58, 60 Principle 8

http://www.edmond-de-rothschild.com/SiteCollectionDocuments/asset-management/isr/EDRAM-responsible-investment-policy.pdf

http://www.edmond-de-rothschild.com/SiteCollectionDocuments/asset-management/isr/EDRAM-responsible-investment-policy.pdf

http://www.edmond-de-rothschild.com/SiteCollectionDocuments/asset-management/isr/EDRAM-voting-policy.pdf

http://www.edmond-de-rothschild.com/SiteCollectionDocuments/asset-management/isr/EDRAM-voting-policy.pdf

74

REVIEW REPORT ON A SELECTION OF SUSTAINABILITY INDICATORS PUBLISHED IN EDMOND DE ROTHSCHILD GROUP’S 2015 SUSTAINABILITY REPORT

This is a free translation into English of the review report by one of the Statutory Auditors issued in French and is provided solely for the convenience of English speaking readers. This report should be read in conjunction with, and construed in accordance with, French law and profes-sional auditing standards applicable in France.Further to the request of the Edmond de Rothschild Group, we have carried out work for the purpose of enabling us to express limited assurance on a selection of sustainability indicators published in the 2015 Sustainability report of the Edmond de Rothschild Group.

The following sustainability indicators, labelled with in the 2015 Sustainability report, were selected by the Edmond de Rothschild Group for the purposes of the review:

» Business ethics and compliance

› Total training hours on business ethics and compliance and average number of training hours on business ethics and compliance per employee

» Human resources

› Headcount, breakdown by gender and geography, and type of employee contract

› Recruitments and departures by reason

› Gender equality - Women in senior management

› Number of training hours, Percentage of employees who attended at least one training course, and Women as a percentage of employees trained

› Percentage of employees having participated to the annual performance review

» Sustainable and responsible investment

› Total Group assets under management covered by a sustainable and responsible investment strategy (in millions of CHF)

» Environment

› Energy consumption in the Edmond de Rothschild Group, per source (in MWh)

› Edmond de Rothschild Group’s business travel and work-home travel

› Greenhouse gas emissions for the Edmond de Rothschild Group (Scopes I, II, and III)

› Consumption of paper per employee and share of recycled or certified paper

» Employee commitment to philanthropic programmes

› Number of employees involved in supporting commu-nity projects and initiatives

These sustainability indicators and issues were prepared under the responsibility of the Sustainability Department in accordance with the Group's "2015 social reporting proto-col" and "2015 environmental and societal reporting proto-col” (hereinafter “the Guidelines”), summarised in the 2015 Sustainability report and available on request from Edmond de Rothschild Group’s Sustainability Department.

Our role is to form a conclusion on the selected indicators based on our work.

Nature and scope of our workWe performed the work described below in accordance with ISAE 3000*.

We performed the procedures described below to obtain assurance about whether the selected sustainability indica-tors are free of material misstatement. The work we perfor-med on the societal indicators enables us to express limited assurance. A higher level of assurance would have required us to carry out more extensive work. In addition, the work we performed does not allow us to express a conclusion on the exactness of the quantitative information published.

At the level of Edmond de Rothschild Group’s Sustainability Department:

» We reviewed the suitability of the Guidelines in terms of their relevance, completeness, reliability, impartiality and understandability,

» We performed analytical procedures and verified, on a test basis, that the data used to produce the social and environmental indicators had been correctly calculated and consolidated. This work involved, in particular, inter-views with the persons from the Group Sustainability Department responsible for compiling and applying the procedures and consolidating the data.

We selected a sample of entities, as follows:

» France : Edmond de Rothschild (France) in Paris;

» Switzerland : Edmond de Rothschild (Suisse) S.A. in Geneva;

» Luxemburg : Edmond de Rothschild (Europe) in Luxemburg ;

» Italy: Edmond de Rothschild (Italia) SGR SPA in Milano.

This selection was made on the basis of the quantitative and qualitative criteria applied to the indicators.

With regard to the selected entities:

» We checked that the procedures had been properly understood and correctly implemented on the basis of interviews with the persons responsible for preparing the data;

» We performed in-depth checks on a test basis to verify the calculations and reconcile the data with the suppor-ting documents.

The contribution of these entities to the Group's consoli-dated indicators represents 93% of headcount and in ave-rage 80% of consolidated environmental indicators.

ConclusionBased on our work, nothing has come to our attention that causes us to believe that the Sustainable development indi-cators selected by the Edmond de Rothschild Group, taken as a whole, are not presented fairly, in all material respects, in accordance with the Guidelines.

Neuilly-sur-Seine, June 24, 2016 PricewaterhouseCoopers Advisory

Sylvain LambertSustainable Development Department

* ISAE 3000 – Assurance engagements other than audits or reviews of historical financial information


Artistic works on show in clients’ meeting rooms at Edmond de Rothschild (Suisse) S.A.

The artist Gianluca Berardi created all the paintings, set o with embedded objects and embroideries, which make the corridors’ walls alive.

“Ier Acte” (“1st Act”), workshops for actors developed by the Edmond de Rothschild Foundation, the SNCF Foundation and la Colline – national Theatre to encourage diversity on French theatre stages (photograph: François du Chatenet).

GROUPE EDMOND DE ROTHSCHILD

Editors in chief: Kate Cacciatore, Charlotte Yvard

Sustainability reporting tool: FigBytes

Main contributors: Spencer Crawford, Mouloudia Duval, Céline Grumelart, Stéphanie Guardiola, Camille Gueritte, Ofra Hazanov, Florence Juillien, Véronique Le Heup, Jonathan Martini, Yannis Mekki, Angélique Mounier-Kuhn, Sandra Osterwalder, Delphine Patritti, Martin Perrier, Muriel Philippe, Sandrine Polo, Nathalie Riot, Christophe Voyeaud.

Thanks to: Sandra Abderhalden, Anthony Aleu-Roca, Mauro Allegra, Giuliano Annoni, Lydia Ballester, Isabelle Baradon, Adil Benjelloun, Sylvain Blondel, Marie-Charlotte Bonnassieux, Stéphanie Bouget, Itzel Carvajal, Roberto Castiglioni, Tommaso Cattaneo, Rémi Chabard, Pascal Charlot, Bruce Cheung, Julie Cloutier, Carole Coco, Shlomi Cohen, Pnina Cohen-Solal, Christophe Contreras, Emmanuel Courant, Julien Currat, Jean-François Delessert, Pascal Delle, Franck Distaso, Nicolas Doré, Jérôme Dubois, Aurélie Eldin, Frederique Ernst de la Graete, Maria Farias, Anne-Aimée Frances, Sophie Gadi, Myriam Garcia, Brice Gasmi, Pascal Gendraud, Grégory Gensous, Jean-Luc Giustina, Hannes Günsch, Marc Halperin, Pauline Hou, Maria Kahane, Anat Karmazin, Muriel Karpeles-Berruyer, Adam Lawrence, Valérie Lombardi, Alessandro Lorenzon, Eric Maglieri, Thierry Mangin, Remi Martinato, Carlo Martines, Jolly Mathews George, Céline Matthey, Roger Merminod, Patrick Morieux, Susan Mould, Sam Muon, Kelly Musson, Sylviane Nouet, Maribel Parmigiani, Romy Pauwels, Angela Perez, Anne-Saïcha Pilloy, Stéphane Piot, Eric Pruvost, Hilde Robart, Paul Rolle, Elodie Rose, Javier Saez, Mélanie Salagnat, Philippe Siegrist, Martin Spyrakos, Pamela Strain, Adriana Tedesco, Sam Thomé, Daniella Van Rooij, Ashley Wise.

This report is dedicated to the memory of Manuel Doméon who was Head of Socially Responsible Investment (SRI) research and management at Edmond de Rothschild Asset Management (France), and played an important role in defining the SRI strategy for the whole Group

Production: Edmond de Rothschild (Suisse) S.A.

Photographers and photos’ rights: François du Chatenet, Sarah Day Smith / VFAN, CIFOR (Center for International Forestry Research), DR, Edmond de Rothschild (Suisse) S.A.

Traduction : Labrador Translations

Disclaimer This publication is for reference only and is not intended as a commercial offer, solicitation, public advertisement or recommendation to buy or sell any investment or other specific product. Its content has been prepared by the Sustainability team and is based on sources of information we consider to be reliable. However, we cannot provide any undertaking or guarantee as to it being correct, complete and up to date. The circumstances and principles to which the information contained in this publication relates may change at any time. Once published, therefore, information shall not be understood as implying that no change has taken place since its publication or that it is still up to date. The information in this publication does not constitute an aid for decision-making in relation to financial, legal, tax or other consulting matters, nor should any investment or other decisions be made on the basis of this information alone. It is recommended that advice be obtained from a qualified expert. Investors should be aware that the value of investments can fall as well as rise. Positive performance in the past is therefore no guarantee of positive performance in the future. The risk of price and foreign currency losses and of fluctuations in return as a result of unfavourable exchange rate movements cannot be ruled out. We disclaim without qualification all liability for any loss or damage of any kind, whether direct, indirect or consequential, which may be incurred through the use of this publication. This publication is not intended for persons subject to legislation that prohibits its distribution or makes its distribution contingent upon an approval. Any person coming into possession of this publication shall therefore be obliged to find out about any restrictions that may apply and to comply with them.