the ESG methodology
A responsible investment approach for long-term value
ESG – short for Environmental, Social, and Governance – is a tool that helps investors go beyond the traditional financial analysis of corporate value by including sustainability metrics. Risk and opportunities pertaining to environmental, social, and governance matters are assessed in all our investment processes – to maximise long-term outcomes for our investors.
For the planet, the people, and your profitability
ESG is not just an ethical issue, it's a financial one. We believe that carefully managed ESG integration is an indispensable tool for proper risk management and a prerequisite for long-term healthy returns. Our organisational policies and procedures serve as a collective roadmap to achieve this on behalf of our investors; to ensure that the companies we invest in meet our expectations of ESG performance.
Continue the read to learn about our processes and means for investing with a sustainable aim – in detail.
Company-level norms-based screening
Nowadays, numbers are not sufficient.to determine the value of an investment. Our funds are subject to norms-based screening, which identifies companies that are allegedly involved in breaches of international law and norms on environmental protection, human rights, labour standards, and anti-corruption. If a company is identified in this screening process, an internal assessment of the company and the incident is initiated. Typical actions can consist of engagement, quarantine (meaning that the fund can hold on to its investments in the company but not make any further investments at the moment), or exclusion.
Company-level exclusion list
Our funds exclude companies involved in serious breaches of international norms, where engagement is deemed not to be possible or effective. For example, we ban investments in companies active in the production of controversial weapons, including – but not limited to - cluster munitions and anti-personnel mines, as well as nuclear weapons. Our funds also do not invest in companies deriving more than 10% of their revenues from thermal coal and exclude companies involved in the production of fossil fuels from oil sands or through arctic drilling.