There is both a "positive" engangement process as well as a "negative" engagement process.
Positive engagement: motivation for investability
The aim of positive engagement is to motivate companies via contacting them (letter) to take the necessary steps to be investable. These companies either do not violate any exclusion criteria, however, do not reach the investment threshold or they violate exclusion criteria but are above the investment threshold. KEPLER receives the potential for improvement for every company by oekom research AG. Positive engagement is done bi-annualy.
Negative engagement: in case of any violation of exclusion criteria
oekom research AG quarterly sends the new investment universe including those companies which violate an exclusion criterion. KEPLER contacts these companies via letter, including an explanation of the violation as well as the consequence: sale of stocks (equities or bonds). In case the company answers, oekom research AG undertakes the following dialogue with the company. The maximum period between publication of any breach and final sale is 4 months.