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Sparda-Bank Muenchen eG

PRI reporting framework 2018

You are in Direct - Fixed Income » ESG incorporation in actively managed fixed income » (A) Implementation: Screening

(A) Implementation: Screening

FI 04. Types of screening applied

04.1. Indicate the type of screening you conduct.

Select all that apply
SSA
Corporate (financial)
Securitised
Negative/exclusionary screening
Positive/best-in-class screening
Norms-based screening

04.2. Describe your approach to screening for internally managed active fixed income

Our internally managed active fixed income investments are subject to our strict "Gemeinwohlökonomie" principles (see https://www.sparda-m.de/pdf/sparda-m/gemeinwohlbericht_2013_2014.pdf), just like all our business operations are. These principles can be found in this "Gemeinwohlbericht" mentioned from page 21 on.

One main rule required by law of conducting fixed income investment operations is "No limit, no trade". That means every single investment that we want to do has to have a pre-setup and approved credit limit. A pre-requisite for this approval is compliance to our strict "Gemeinwohlökonomie" principles. To make sure these requirements are met, ESG data are part of our analyses just like annual reports, financial analyses, cover pool analyses etc. Sufficient ESG data scores are always and everywhere prerequisite for approving and maintaining credit limits. At least annually, when the latest annual reports are published, we repeat this process of screening our investments. Moreover we have setup excel-based analysis tools that provide us updated ESG data when available on a daily basis.

04.3. Additional information. [Optional]


FI 05. Negative screening - overview and rationale

05.1. Indicate why you conduct negative screening.

SSA

SSA

Corporate (financial)

Corporate (fin)

Securitised

Securitised

05.2. Describe your approach to ESG-based negative screening of issuers from your investable universe.

Our exclusion list can be accessed on https://www.sparda-m.de/pdf/sparda-m/gemeinwohlbericht_2013_2014.pdf

As this list is in german language we want to provide an abbreviated english translation here (the german version prevails): Criminal behaviour, destruction of natural ressources (no commodity investments!), production and trade with controversial weapons, people trafficking, violation of human rights, torture, death penalty, opression of democracy and minorities (Freedom house report), Corruption (Corruption perceptions index), terrorism, disregard of labour standards (ILO), non-ratification of the kyoto-protocol (and similar documents) and of the UNEP biodiversity protocol, speculations linked to human distress, "predator capitalism", obviously disreputable behaviour that takes advantage of legal loopholes.

One main rule of investmenting is "No limit, no trade". That means every single investment that we want to do has to have a pre-setup and approved credit limit. A pre-requisite for this approval is compliance to our strict "Gemeinwohlökonomie" principles. To make sure these requirements are met, ESG data are part of our analyses. Sufficient ESG data scores are always and everywhere prerequisite for approving and maintaining credit limits. At least annually we repeat this process of screening our investments. Moreover we have setup excel-based analysis tools that provide us updated ESG data.

05.3. Additional information. [Optional]


FI 06. Examples of ESG factors in screening process (Not Completed)


FI 07. Screening - ensuring criteria are met

07.1. Indicate which systems your organisation has to ensure that fund screening criteria are not breached in fixed income investments.

Type of screening
Checks
Negative/exclusionary screening?

other description

          Audits of fund holdings are undertaken approximately every two years by the "Gemeinwohlökonomie" organization. The next audit is conducted in the near future.
        
Positive/best-in-class screening

other description

          Audits of fund holdings are undertaken approximately every two years by the "Gemeinwohlökonomie" organization. The next audit is conducted in the near future.
        

07.2. Additional information. [Optional]


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