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KEPLER-FONDS KAG

PRI reporting framework 2018

You are in Direct - Listed Equity Incorporation » ESG incorporation in actively managed listed equities

ESG incorporation in actively managed listed equities

Implementation processes

LEI 01. Percentage of each incorporation strategy

New selection options have been added to this indicator. Please review your prefilled responses carefully.

01.1. Indicate (1) which ESG incorporation strategy and/or combination of strategies you apply to your actively managed listed equities and (2) the breakdown of your actively managed listed equities by strategy or combination of strategies (+/- 5%)

ESG incorporation strategy (select all that apply)

Percentage of active listed equity to which the strategy is applied
7.24 %
Percentage of active listed equity to which the strategy is applied (+/- 5%)
0.15 %
Percentage of active listed equity to which no strategy is applied
92.61 %
Total actively managed listed equities 100%

01.2. Describe your organisation’s approach to incorporation and the reasons for choosing the particular ESG incorporation strategy/strategies.

KEPLER's first sustainable equity fund - KEPLER Sustainability Aktienfonds - was issued in November 2000, therefore, about 17 years ago. KEPLER was aware of the importance of sustainable investments quite early and also was aware of its responsibility to promote this kind of investment strategy. Two years later, KEPLER Ethik Aktienfonds, the first ethical (equity) investment fund, was issued and thus KEPLER led the ground for further ESG funds. Different special funds were issued for institutional investors and KEPLER Ethik Rentenfonds, an ethical bond fund for private clients, was incorporated. In October 2014, KEPLER's ethical product range was extended by KEPLER Ethik Mix, a conservative, multi-asset portfolio managed according to SRI criteria. High transparency, international and independent partners (such as oekom research AG) and an ongoing dialogue with the partners as well as a continuous development of the investment approach are vital for the success of KEPLER's ESG investment approach.

01.3. If assets are managed using a combination of ESG incorporation strategies, briefly describe how these combinations are used. [Optional]

As far as our "screening and thematic strategies" are concerned, KEPLER Öko Energien Fund can be assigned to this group. We combine a small set of exclusion criteria in combination of the thematic investment approach of renewable energy and energy efficiency.


LEI 02. Type of ESG information used in investment decision (Private)


LEI 03. Information from engagement and/or voting used in investment decision-making (Private)


(A) Implementation: Screening

LEI 04. Types of screening applied

04.1. Indicate and describe the type of screening you apply to your internally managed active listed equities.

Type of screening

Screened by

Description

KEPLER's ethical committee agreed on a comprehensive list of exclusion criteria including products, activities, sectors, environmental and social practices / performance as well as corporate governance. Operationalisation of the criteria is done by our ESG provider oekom research AG.

Screened by

Description

Additionally to exclusion criteria, positive criteria for corporates (bonds and equities) are applied in KEPLER's ethical investment approach. KEPLER's ESG provider oekom research AG established a sector-based ESG-matrix comprising social and environmental impact. The higher social and environmental (negative) impacts of a sector, the higher the requirements for the ESG management. This implies a higher barrier to receive prime status. For example, the requirements (and negative impacts) of the metals & mining sectors are higher than those of the financials and insurance sectors. Therefore, it is easier for financials / insurances to reach prime status than for companies of the metals/mining sectors.

Screened by

          Kyoto Protocol to the UN Framework Convention on Climate Change,
CITES
        

Description

All above selected norms are considered in KEPLER's ESG approach.

04.2. Describe how the screening criteria are established, how often the criteria are reviewed and how you notify clients and/or beneficiaries when changes are made.

Screening criteria are established by oekom research and are continuously reviewed and discussed in the KEPLER Ethics Committee. Oekom research screens more than 3.800 companies and 56 countries as well as the EU.

As far as companies are concerned, a best-in-class approach rates companies on the basis of about 100 sector-specific criteria. Additionally, exclusion criteria are applied. As far as countries (and EU) are concerned, a best-in-class approach rates countries on the basis of about 100 environmental and social criteria. Additionally, exclusion criteria including environmental and social criteria are applied.

Oekom research's rating criteria are continuously reviewed  by oekom and its rating committee. Corporate ratings are reviewed in different intervals (continously, quarterly, annualy, 2 years intervals etc.)

If a change in KEPLER's exclusion criteria is made (for example after the last Ethics committee - new criterion "coal and oil"), the new criteria are published on our homepage. 


LEI 05. Processes to ensure screening is based on robust analysis

05.1. Indicate which processes your organisation uses to ensure screening is based on robust analysis.

05.3. Indicate how frequently third party ESG ratings are updated for screening purposes.

05.4. Indicate how frequently you review internal research that builds your ESG screens.

05.5. Additional information. [Optional]


LEI 06. Processes to ensure fund criteria are not breached (Private)


(B) Implementation: Thematic

LEI 07. Types of sustainability thematic funds/mandates

07.1. Indicate the type of sustainability thematic funds or mandates your organisation manages.

07.2. Describe your organisation’s processes relating to sustainability themed funds. [Optional]

The processes for sustainability themed funds are the same as those for our ethical funds. For our themed equity fund, a best-in-class approach is applied additionally for a part of the ethical investment universe - renewable energy & energy efficiency. Moreover, the exclusion criteria "nuclear power production" and "controversial environmental practices" are applied.


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