ESG approach

ESG investment strategies consider environmental (E), social (S) and governance (G) aspects in addition to traditional fundamental aspects such as micro- and macroeconomic information. The term "ESG investments" encompasses a range of approaches and is often used interchangeably with terms such as "ethical screening," "sustainable / responsible investing," and others.

In our view, the social and environmental sustainability of a business model and the integrity of management teams are important factors for creating long-term value. To address certain risks arising from controversial business areas or problematic business practices, we apply ESG exclusion criteria. Additionally, we consider positive factors that promote and sustain earnings growth, such as good corporate governance. Alongside our own research, we use external data to understand the sustainability profile of companies and issuers. We strive to identify material factors that are critical to improving long-term returns and the sustainability profile as part of our ESG investment process.

We monitor ESG risks relating to controversial business activities and practices throughout the entire holding period of an investment. Through the automated integration of external data into our internal systems, compliance with exclusion criteria and the associated ESG risks are continuously monitored.