VBV - Vorsorgekasse Responsible Investment Guidelines are compulsory for all AUM.
Manager selection process
The first step in choosing our external managers is to launch a request for proposal via specialised web platforms. The typical request form we file contains the following on responsible investments consideration:
- compliance to CFA Institute GIPS
- signatory of UNPRI
- compliance to yourSRI Transparent
-compliance to yourSRI Transparent Label Agreement
-eligibility for the Austria ecolabel (Österreichisches Umweltzeichen)
Description (copied from one of our manager searches):
"The manager should be commited to responsible investing and the fund itself should have an integrated ESG approach in the Investment process. From a sustainability view the Austrian Ecolabel ("österreichisches Umweltzeichen") provides a useful framework for our requirements. (See https://www.umweltzeichen.at/cms/en/products/content.html, in German only:https://www.umweltzeichen.at/cms/de/produkte/nachhaltige-finanzprodukte/content.html ). While the fund doesn't have to be eligible to the Austrian ecolabel (though it would be a plus, if it is), the sector exclusion list of the ecolabel is a strict requirement."
The result of the first step in our manager selection process is a "long list" of managers.
The second step in our manager selection process is to derive a "short list" of managers. Shortlisted managers will then be obliged to fill out our proprietary "VBV Due Diligence Questionnaire" (for initial due diligence)
Chapter 6 of the due diligence questionnaire covers all specific questions concerning CSR, SRI and ESG.
Manager appointment process
The above mentioned requirements, if met, are formalised in the fund agreement between the fund manager, the investment conmpany and VBV - Vorsorgekasse.
Manager monitoring process
Our monitoring process for all investments consists of:
- Proprietary VBV Due Diligence Questionnaire (for ongoing due diligence): it has 13 topic contents, one of which is "CSR, ESG, SRI" (chapter 6) . Each questionnaire is read by at least two employees of VBV - Vorsorgekasse and it is given an assessment by the asset management and the risk management department.
- Quarterly ESG and carbon report: since the second quarter of 2018, our external equity and fixed income fund managers are required to provide the ESG rating and a carbon report for the funds they manage. These reports are best appreciated when delivered by third party providers.