We use for all the above described analysis ESG-Data/Research from different providers: Asset4, MSCI-GMI's, RepRisk, Trucost, Factiva.
Details to the multi-step process for Corporates (Financial/non-Financials):
=> Focused on a high "Sustainability Impact"
In order to define the range of sustainable products, the analysts apply a selection of very stringent exclusion criteria. The ex-ante exclusion criteria make sure that our clients do not invest in companies that contribute to the world's most serious environmental problems and social risks. Further problem areas such as the compliance ILO principles are reviewed in the analysis and monitored constantly and companies breaching standards are excluded ex-post.
Ex-ante exclusion criteria: => Anthropogenic climate change - Extraction of fossil fuels - Operation of fossil-fuel power stations - Production of cars and aircrafts - Airlines => Endangerment of the Earth's atmosphere - Production of substances that deplete the ozone layer => Loss of biodiversity - not sustainable forestry - not sustainable fishery and fish farming - not sustainable palm-oil plantations - Genetic engineering => Threat to society and health - Nuclear energy - Production of arms and war material - Production of tobacco and smoking - Exploitative child labour.
The application of the exclusion criteria is followed by a sector analysis: The aim is to extract those companies in their respective industries and regions that set an example by excelling at taking responsible actions in terms of environmental protection, social and governance issues. The selection of is based on a multi-step process. The quantitative analysis compares roughly 50 environmental, social and corporate governance indicators. The data is obtained from specialized providers (such as Asset4, Trucost, MSCI ESG Research & Governance Metrics or RepRisk). Then, we carry out a qualitative product and sector analysis, which is mainly built on the know-how, experience and industry-specific knowledge of our analysts.
The sector analysis is followed by a fundamental bond analysis with a strong focus on companies with a high "Sustainability Impact". The following investment opportunities were defined: Energy: Renewable energy, energy efficiency. Sustainable Mobility: Public transport, Individual transport. Knowledge: Education/Research, Interlinking. Health: Access to basic health supply, Preservation of health. Finance: Access to financial services, Financial infrastructure. Resources: Efficient use of water, resource efficiency.