In-depth fundamental analysis, active portfolio management and consideration of environmental, social and governance (ESG) criteria throughout the investment process make it possible to systematically exploit market inefficiencies in order to achieve risk-adjusted outperformance for our clients. Our experience in ESG investing began almost 30 years ago when we launched our first fund with defined criteria for an institutional investor. Today, we manage more than 119.5 billion euros in sustainable investment funds*.
- as of: 30 September 2022
*Classification based on time-weighted return (BVI method) pursuant to articles 8 and 9 of the Sustainable Finance Disclosure Regulation (SFDR)
Our systematic, integrated investment process
In the context of portfolio management, the analysis of ESG risks and opportunities is firmly embedded within our research work. Closer fundamental Integration enables us to make better investment decisions and generate a positive impact on investment performance. We manage our sustainability research using our proprietary Sustainable Investment Research Information System (SIRIS).
Our components for sustainable investment
Our portfolio management covers all key sustainability strategies across all major asset classes. Furthermore, our sustainability competence centre assumes the role of coordinator in order to apply strict requirements in terms of sustainability.
As one of Europe’s 15 leading asset managers, we are aware of our responsibility and have accepted the challenge of helping to actively shape a future-proof environment for our clients’ Investments.
ESG rating as the basis for our best-in-class approach
This SRI component enables us to select the companies that are setting the highest environmental, social and corporate governance standards in their respective sector. Before this selection takes place, a systematic analysis of various ESG factors is performed, as a result of which an ESG rating is generated for each company. This then serves as the basis of our best-in-class approach, whereby companies with the lowest scores in the sector are avoided and those with the highest scores are favoured.
This approach focuses on companies whose core business is in sustainable segments – i.e. where at least 40 per cent of the revenue derives from activities aimed at resolving environmental and social problems.
For this approach we calculate the CO2 intensity of the portfolio – its carbon footprint. This considers the company’s CO2 emissions (scope 1 & 2) per US$ million of corporate revenue. Scope 1 comprises all direct greenhouse gas emissions of the company, whereas scope 2 comprises all indirect emissions produced by the provision of energy generated outside the company.