We are pioneers in sustainable investments, having developed a proprietary research and investment framework continuously over the last 30 years. Today, we continue to be a leader in this field. Sustainability remains at the heart of our Group’s philosophy. We believe it is only by taking the long-term view, nurturing relationships with clients, investing in high-quality assets, and taking care of those assets responsibly, that an asset management business can ensure sustained performance and resilience across economic cycles.
Sustainability is integrated into every step of the investment process:
In Step 1, we define a universe of companies we consider sustainable. After excluding controversial businesses, we conduct our Sustainability Analysis of industries and companies (“best-of-classes” and “best-in-class”). Our Sustainability Matrix® displays our sustainable investment universe, which comprises the companies with sufficient combined industry and company ratings. Aim: reducing investment risks.
Step 2, Investment Analysis, aims to deliver returns – by harnessing opportunities and identifying companies with operational ESG excellence. We rely on fundamental analysis to derive investment cases. Integrating ESG factors increases our confidence in those cases.
Portfolio Construction (Step 3) includes an ESG risk review both of portfolios and individual holdings. By looking at risks using both financial and ESG metrics, we aim to mitigate risks typically overlooked by traditional approaches and commercial risk models. ESG risks have a long-term impact but are difficult to estimate. Our data analytics estimate exposure by evaluating carbon footprint (Scope 1+ 2 intensity), stranded asset exposure and reputational risks.
Step 4, Continuous Monitoring, consists of ESG portfolio reporting and active ownership. ESG reporting further supports portfolio risk management; it also helps us build awareness for ESG issues. We offer a wide range of reporting criteria, including an Impact Monitor (UN Sustainable Development Goals) and comparisons against the benchmark of our E, S and G scores of portfolios, as well as of carbon intensity and stranded asset risk. Active ownership comprises both engagement and voting, as outlined in our Active Ownership Policy.