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Robeco

PRI reporting framework 2020

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ESG incorporation in actively managed listed equities

Implementation processes

LEI 01. Percentage of each incorporation strategy

01.1. Indicate which ESG incorporation strategy and/or combination of strategies you apply to your actively managed listed equities; and the breakdown of your actively managed listed equities by strategy or combination of strategies.

ESG incorporation strategy (select all that apply)

Percentage of active listed equity to which the strategy is applied — you may estimate +/- 5%
13 %
Percentage of active listed equity to which the strategy is applied — you may estimate +/- 5%
87 %
Total actively managed listed equities 100%

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

Robeco's investment teams apply ESG integration to maximize value for our clients. It is our firm belief that by taking into account Environmental, Social and Governance factors we arrive at better informed decisions.

Robeco's capabilities in sustainable investing include engagement and voting, sustainable investment research, quant sustainable investing and global fundamental sustainable investing in both developed and emerging markets. We take into account Environmental, Social and Governance factors in our investment process to achieve better informed decisions. ESG factors can create both an opportunity or a risk for the companies we analyze.

Sustainability investing is one of the key strategic pillars of Robeco. Almost all funds managed by Robeco Institutional Asset Management (RIAM) apply some form of ESG integration. Each investment team determines how sustainability factors are material to the investment process. These factors are systematically taken into account in the fundamental or quantitative analysis.

The Robeco exclusion policy is applied to all funds, and to mandates if required by the clients. All investments are screened.

Besides the generation of S&P indices, RobecoSAM supplies ESG scores exclusively for Robeco and RobecoSAM capabilities. These scores are used in our quant products and in our global fundamental products (in both developed and emerging countries). In our real estate product, we use RobecoSAM scores and GRESB scores. In our trend products (in the New World Financials Fund, the Consumer Trends Fund and the Global Trend fund) we use RobecoSAM and Sustainalytics scores. 

In quant investing ESG factors are integrated: a key feature of our quant sustainability investment approach is that stocks with a favorable ESG score - next to scores of other factors in the model - are preferred above other stocks, as we ensure that the portfolio's weighted ESG score is higher than the ESG score of the benchmark or the reference index. It is important to note that in quant investing, in order to measure sustainability, the scores based on the RobecoSAM Corporate Sustainability Assessment (CSA) are used. Since July 2016 we have incorporated the Smart ESG scores into the quantitative equity strategies. In quant sustainable investing we incorporate ESG scores to enhance returns and to reduce risk. In 2019, the ESG integration approach was enhanced by including the Corporate Assessed scores into the quality factor in the factor model and by decarbonizing the value factor.

In global fundamental investing in both developed and emerging markets, ESG scores are taken into account in the decision support models we use to identify interesting stocks. In addition, we take into account material financial factors and estimate their impact on the valuation of the companies researched. The reason we take into account these financially material factors in the investment decision, is that we firmly believe this will lead to better informed decisions. As a result of ESG integration in 2019 the overall RobecoSAM scores of these Robeco portfolios have improved further and two fundamental equity strategies (Global Stars and Property Equities) have become Sustainable strategies, meaning they adhere to our criteria to become a sustainable fund.

In 2019, we again saw a strong demand for sustainability solutions from clients. We also gathered from talking to our clients that there is still some confusion as to what sustainable investing actually entails. This is why we continue to share our knowledge with our clients and the broader market. Because we notice that there is now more and more alignment about the different types of sustainability approaches that investors seek, and so we put in place a consistent sustainability approach across three ranges:

  • Sustainability Inside: the majority of Robeco strategies fall into this category which includes full ESG integration, proprietary research, Robeco exclusion policy and voting & engagement.   
  • Sustainability Focused: in addition to Inside, these strategies have an explicit sustainability policy with enhanced exclusions, at least 20% lower environmental footprint (water, waste, energy and GHG emissions) and for quantitative strategies a minimum 20% better-than-benchmark ESG score and for fundamental strategies a restricted universe excluding the 20% worst companies based on the RobecoSAM Smart ESG score. 
  • Impact Investing: in addition to Inside, these strategies aim to contribute to specific sustainable themes such as energy or mobility, and/or the UN’s Sustainable Development Goals.

The difference in approaches is also reflected in the naming of these funds. The Sustainability Focused funds all carry 'sustainable'  in the naming of the fund. The Impact range is labelled RobecoSAM. These labels are intended to have a consistent storyline for our clients and to identify and compare strategies internally. The Sustainable Focus and Impact range amounted to 9% of assets at the end of 2019.

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

​As mentioned in the question above, we distinguish between three levels of investing. Each combine different approaches:

Sustainability Inside: the majority of Robeco strategies fall into this category which includes full ESG integration, proprietary research, Robeco exclusion policy and voting & engagement.   
Sustainability Focused: in addition to Inside, these strategies have an explicit sustainability policy with enhanced exclusions, at least 20% lower environmental footprint (water, waste, energy and GHG emissions) and for quantitative strategies a minimum 20% better-than-benchmark ESG score and for fundamental strategies a restricted universe excluding the 20% worst companies based on the RobecoSAM Smart ESG score.  
Impact Investing: in addition to Inside, these strategies aim to contribute to specific sustainable themes such as energy or mobility, and/or the UN’s Sustainable Development Goals.

We put in efforts to be transparent on the different sustainability building blocks, thresholds and approaches used:

  • On our website the different approaches are described per strategy in this document: https://www.robeco.com/docm/docu-esg-integration.pdf
  • Also on our website strategies can be selected according to these labels: https://www.robeco.com/en/strategies/
  • Furthermore the Sustainable Focus and Impact strategies adhere to the Eurosif Transparency guidelines: http://www.eurosif.org/transparency-code/signatories-and-responses/netherlands/

LEI 02. Type of ESG information used in investment decision

02.1. Indicate what ESG information you use in your ESG incorporation strategies and who provides this information.

Type of ESG information

Indicate who provides this information  

Indicate who provides this information 

Indicate who provides this information 

Indicate who provides this information 

Indicate who provides this information 

Indicate who provides this information 

          RobecoSAM, a sister company of Robeco also provides SDG research and ratings and environmental footprint information_(waste, water, energy and greenhouse gases (in CO2 equivalents).
        

Indicate who provides this information 

02.2. Indicate whether you incentivise brokers to provide ESG research.

02.3. Describe how you incentivise brokers.

We take the quality of ESG information into account in our broker assessments. In 2018 MIFID II came into effect and Robeco began paying for research out of its own Profit & Loss. All research reports are being assessed and usage is tracked. Formal broker feedback sessions are undertaken and each team provides input for this. Besides the input from the investment teams on ESG research, the active ownership team has their own budget which is mostly directed at brokers that are providing value added ESG research. In 2019 this budget was not used as the research acquired by the equity and credit teams covered the research need of the Active Ownership team.

02.4. Additional information. [Optional]

A multitude of ESG information is used in our investment strategies across the board. Most of this information is stored in a single system maintained by RobecoSAM. The most important sources of research are:

  • RobecoSAM materiality research
  • RobecoSAM smart ESG score & scorecards
  • RobecoSAM ESG dashboard
  • RobecoSAM company profiles
  • RobecoSAM environmental footprinting
  • RobecoSAM SDG scores
  • RobecoSAM Country Sustainability Ranking
  • Active Ownership profiles
  • Glass Lewis,
  • Sustainalytics,
  • GRESB
  • RepRisk
  • Carbon Disclosure Project (CDP)
  • Bloomberg
  • Trucost scope 3 carbon data (added in 2019)

In fundamental strategies (Global, Asia Pac, Emerging markets and China) we execute an ESG materiality assessment. The ESG materiality assessment is executed by RobecoSAM's sustainability analysts in close cooperation with the financial analysts working for the fundamental equity strategies to understand the materiality of various ESG issues. Further, they use both sector and company context to assess the most material ESG issues. Secondly the teams have access to the RobecoSAM ESG scorecards, environmental footprinting, Active Ownership profiles and SDG scores. This is all in-house developed proprietary research. 

Investment teams further have access to information from external data sources like Glass Lewis, Sustainalytics, GRESB, RepRisk etc. Finally, ESG Company Profiles are produced by the RobecoSAM Sustainable Investment Research Team.


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

03.1. Indicate whether your organisation has a process through which information derived from ESG engagement and/or (proxy) voting activities is made available for use in investment decision-making.

03.2. Additional information. [Optional]

Our engagement activities are an outcome of close collaboration between our Active Ownership specialists, portfolio managers, and analysts.

The Active Ownership team systemically report on their engagement and voting activities to all investment teams. The outcome of the engagement conversation and the opinion of the active ownership specialist are reported per company in the Active Ownership Profile. These profiles are available for the investment teams on the teams portal together with other ESG information and traditional investment information. Also tailormade (based on their portfolio holdings) voting overviews are sent out to the portfolio managers on a weekly basis. Both voting and engagement information will thus be taken into account in the investment cases, where financially material and relevant.

Furthermore, quarterly meetings and presentations between members of the Active Ownership team and the investment teams are organized to complement these reports and to exchange information.

In our sustainability focused quantitative equity strategies we reduce exposures under enhanced engagement due to breaches of the United Nations Global Compact. In this way engagement information is also taken into account in quantitative portfolios.


(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

Robeco's Exclusion Policy is based on the following three approaches:

1. Controversial behavior

Robeco acts in accordance with the United Nations Global Compact (UNGC) and the OED guidelines. An enhanced engagement process is applied with the listed companies that have severe breaches of the UNGC principles. If this enhanced engagement is not successful Robeco will decide to exclude. In 2019 Palm Oil exclusions were added to listed companies that have less than 20% of their plantations RSPO certified. 

2. Controversial products

  • Weapons

Robeco deems anti-personnel mines, cluster munitions, chemical, biological weapons and nuclear weapons to be controversial weapons.

  • Tobacco

Robeco deems investing in tobacco companies an unsustainable investment.

3. Controversial countries

Countries that are subject to a full set of UN, EU or US sanctions are considered as being controversial. Robeco will follow any applicable sanctions to which it is subject and follow any mandatory (investment) restrictions deriving therefrom. In 2019 countries where serious violations of human rights or a collapse of the governance structure take place, were added.

https://www.robeco.com/docm/docu-exclusion-policy-and-list.pdf

In addition for Sustainability Focus products thermal coal mining and generation, weapons and military contracting and nuclear energy are excluded. For Impact strategies also alcohol and gambling are excluded.

Screened by

Description

For engagement, Robeco uses screening to identify thematic engagement opportunities on ESG issues and companies. The identification and prioritization of themes and candidates for engagement, involves rigorous research and analysis. This helps in determining the relevance of a particular theme, the sectors and companies being mostly impacted by that theme, and the performance of companies in that respect. Our screening process is backed by proprietary research as well as external analysis provided by specialized parties.

For quant investing, Robeco uses RobecoSAM's ESG data for the screening of stocks and for constructing portfolios.

For fundamental investing, best in class screening is performed on the basis of RobecoSAM's ESG scores, materiality matrices per industry and company profiles. These serve as input for the fundamental valuation in the investment case, produced by the financial analyst.

In addition to the ESG integrated strategies, for Sustainability Focus strategies companies are also screened on environmental footprint (GHG emissions, water, waste and energy use). For Fundamental Sustainability Focus strategies the bottom 20% of companies on RobecoSAM Smart ESG score are screened out. For thematic and SDG strategies a positive screening is applied on sustainable themes and on the SDG score.

Screened by

          Universal Declaration of Human Rights, Rio Declaration on Environment and Development, GRI and ICGN.
        

Description

We employ three different types of ESG screening in the context of our engagement and sustainability investing activities:

  • Screening to identify thematic engagement opportunities on ESG issues.
  • Screening for enhanced engagement and exclusion.
  • Screening in sustainability investing.

Please find additional information below. For an overview of relevant codes and principles:

https://www.robeco.com/docm/docu-relevant-codes-and-memberships.pdf

04.2. Describe how you notify clients and/or beneficiaries when changes are made to your screening criteria.

Robeco’s distribution and marketing is organized around its three client segments (institutional, wholesale and retail) in order to maintain a clear focus on the best way to serve these distinctly different groups. Robeco ensures intensive personal interaction between institutional clients and distribution partners on the one hand, and senior management, account managers, client servicing teams and portfolio managers on the other.

To improve the servicing of wholesale and institutional clients, Robeco either performs in-house studies or buys ad-hoc surveys on specific topics. In 2018, the topics that clients showed an interest in included factor investing, ESG integration and active versus passive investing. Any expected changes or changes to our sustainability methodology are communicated to clients via personal interaction, via articles on the website, KIIDS and factsheets and via our quarterly newsletter. Changes in the exclusion policy or any of the other SI policies are published on our website. 

One of our key strategic aims for Robeco Retail is to make sustainability investing accessible for everyone by allowing low entry amounts and providing easy-to-use websites and services. This strategy will guide our efforts in the coming years.

In addition to 4.1:

We employ three different types of ESG screening in the context of our engagement and sustainability investing activities:

  • Screening to identify thematic engagement opportunities on ESG issues (picking themes and selecting companies): The identification and prioritization of themes and candidates for engagement involves rigorous research and analysis to determine the relevance of a particular theme, the sectors and companies being mostly impacted by that theme and the performance of companies in that respect. Our screening process is backed by proprietary research as well as external analyses provided by specialized parties.
  • Screening for enhanced engagement and exclusion: Our enhanced engagement program is applied to companies violating the ten principles of the United Nations Global Compact in the areas of human rights, labour rights, environmental issues and anti-corruption. The screening on such controversies is carried out through several databases as well as other research sources. Our generic exclusions policy entails the exclusion of companies that manufacture products that do not comply with broadly accepted international treaties, in particular treaties on controversial weapons. The screening of companies on controversial weapons involvement is carried out by (among others) our data provider Sustainalytics and conforms to Dutch law.
  • Screening in sustainability investing: Furthermore, Robeco systematically incorporates analysis of ESG factors into both its quant and its fundamental investment processes. We are convinced that taking ESG criteria into account results in better-informed investment decisions and is necessary to fully grasp the opportunities that are associated with the businesses. In quant investing the choice of ESG variables in the models is based on back testing. We inform clients if we make a change to the model. In fundamental equity the choice of the ESG variables is based on the ESG materiality matrix. This matrix and the company profile is reviewed every two years. Changes are incorporated into the valuation of companies.

Furthermore, Robeco is committed to measuring the carbon footprint of its investment products (for more information on the companywide approach please see the section on climate change). RobecoSAM's Environmental Impact Monitoring tool measures the impact of investors' portfolios in terms of greenhouse gas emissions, energy and water consumption and waste production. Robeco and RobecoSAM have further developed tools for actively managing the reduction of the greenhouse gas emissions footprint associated with its portfolios while also controlling for other environmental impacts. Based on these tools Robeco has adopted a comprehensive approach to reducing emissions with respect to the relevant benchmark. We are also able to respond to specific client requirements in optimizing investment portfolios to meet absolute targets. All Robeco SI Focus funds optimize their carbon footprint. These funds have at least a 20% target on carbon reduction towards the benchmark.

All Robeco SI Focus funds are divested from mining companies with more than 10 percent of thermal coal revenues, and from power producers with more than 20 percent of thermal coal related revenues.

Thermal coal is a product that is predominantly used in power generation and is a more carbon intensive source of energy than any of the alternatives such as oil and natural gas. We focus on thermal coal because we consider that power generators have a choice of technologies and we expect them to move towards the lower carbon alternatives. We expect to see companies reducing their dependence on thermal coal in the future and aim to adjust our threshold lower in the coming years.

Robeco's climate change policy can be found here:

https://www.robeco.com/docm/docu-climate-change-policy.pdf

Please find additional information below. For an overview of relevant codes and principles:

https://www.robeco.com/docm/docu-relevant-codes-and-memberships.pdf

In 2019 Robeco subscribed to the Eurosif Transparency Guidelines for its Sustainability Focus range, increasing transparency: http://www.eurosif.org/transparency-code/signatories-and-responses/netherlands/

 Also a document was published on ESG integration per strategy: https://www.robeco.com/docm/docu-esg-integration.pdf


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

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

          Industry ESG materiality framework, that helps identify most material risks and opportunities across various sectors
        

05.2. Indicate the proportion of your actively managed listed equity portfolio that is subject to comprehensive ESG research as part your ESG screening strategy.

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]

For our exclusion policy all assets are screened based on our policy. To ensure robustness we use multiple sources of information for the controversy screening (Sustainalytics, RobecoSAM Media and Stakeholder analysis, RepRisk). The information is updated at least once a quarter, but also on an ad hoc basis when controversies or changes in for example sanctions occur. The exclusion list is integrated into our trading systems and compliance pre-trade monitoring is in place.


LEI 06. Processes to ensure fund criteria are not breached

06.1. Indicate which processes your organisation uses to ensure fund criteria are not breached.

06.2. If breaches of fund screening criteria are identified, describe the process followed to correct those breaches.

The rules for Sustainability funds are determined and validated by the Sustainability and Impact Strategy committee (SISC). This committee guides sustainability developments. The committee consists of members of the Executive Committees of Robeco and RobecoSAM and internal specialists. 

The portfolio management team bears the responsibility to implement the rules in the portfolio. Outcomes are measured and monitored via an automated system. The eligible universe is coded by the compliance team as such that any ticker not being eligible will be flagged and results into a pre-trade compliance alert that needs to be addressed by the pre-trade restriction team and the portfolio manager responsible for the respective fund. In addition, the eligible tickers enables the daily Compliance post-trade check, ensuring the portfolios being monitored are compliant on an ongoing basis. The internal audit department periodically evaluates the effectiveness of this process.

Furthermore results are reported to clients on a monthly basis. Please see the monthly portfolio managers update on our website for an example of this reporting.

External due diligence of our processes take place by our clients and are part of our application for external labels. In 2018 we applied for and were awarded the French SRI Label for our Sustainability Focus range. To be able to be awarded this label an external party audited our processes. In 2019 we applied for the Febelfin label for over 16 strategies. The external verification was done by Ethibel. All 16 strategies were awarded the label. Furthermore, we are continually subject to client due diligence processes.

06.3. Additional information. [Optional]


(C) Implementation: Integration of ESG factors

LEI 08. Review ESG issues while researching companies/sectors

08.1. Indicate the proportion of actively managed listed equity portfolios where E, S and G factors are systematically researched as part of your investment analysis.

ESG issues

Proportion impacted by analysis
Environmental

Environmental

Social

Social

Corporate Governance

Corporate Governance

08.2. Additional information. [Optional]

Within Robeco listed equity assets are managed either on a quantitative or a fundamental basis.

In our quantitative models the ESG scores of companies are used in addition to traditional quantitative variables. A key feature of our approach is that we ensure that the portfolio's weighted ESG score is at least as strong as that of the benchmark. This integration of sustainability factors in our investment processes is applied to all quantitative strategies. Furthermore in 2019 a decarbonized value factor was developed that is applied to all quantitative strategies.

For fundamental equities we use a factor model resulting in a ranking of stocks, where the factor model also includes ESG scores. The use of this model is to generate new ideas for the portfolio. The final decision of incorporating a stock in the fundamental portfolio is based upon the investment case of a stock. Each investment case includes a thorough assessment of material ESG issues and the impact on the company valuation. In the construction phase, the portfolio is monitored versus the benchmark or reference index on the dimension of ESG scores and environmental impact (GHG emissions, Energy consumption, water use, and waste generation).


LEI 09. Processes to ensure integration is based on robust analysis

09.1. Indicate which processes your organisation uses to ensure ESG integration is based on robust analysis.

          interaction between the SI research specialists at RobecoSAM, the Robeco Active Ownership team and the investment teams also improves the quality of the information used.
        

09.2. Indicate the proportion of your actively managed listed equity portfolio that is subject to comprehensive ESG research as part your integration strategy.

09.3. Indicate how frequently third party ESG ratings that inform your ESG integration strategy are updated.

09.4. Indicate how frequently you review internal research that builds your ESG integration strategy.

09.5. Describe how ESG information is held and used by your portfolio managers.

09.6. Additional information. [Optional]

ESG information is available through a portal to which all investment teams have access. The research of RobecoSAM and Sustainalytics is checked with companies and updated at minimum twice a year.

Fundamental Investments: each investment case includes thorough research on ESG and the impact on value drivers. Investment cases and valuation of portfolio holdings are updated at minimum twice a year and are discussed during portfolio management meetings. Results from the ESG integration process are logged by each team in a central location. Furthermore an ESG integration manual is available and quality control is applied by the Head of Sustainability Integration. Monthly sector calls are held to review company ESG issues between the SI research analyst, the Active Ownership specialist and the relevant financial sector analysts. 

The quantitative equity team has access to all ESG information via its portfolio implementation system. The team manages and measures the ESG profile of its portfolios systematically through this system.

We find that systematic use of ESG information is the best way to scrutinize and improve the information used. In 2019 MSCI data was researched and the new ESG risk rating of Sustainalytics was presented to all investment professionals. Feedback was given to Sustainalytics.


LEI 10. Aspects of analysis ESG information is integrated into

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

10.1. Indicate which aspects of investment analysis you integrate material ESG information into.

Proportion of actively managed listed equity exposed to investment analysis

Proportion of actively managed listed equity exposed to investment analysis

Proportion of actively managed listed equity exposed to investment analysis

Proportion of actively managed listed equity exposed to investment analysis

Proportion of actively managed listed equity exposed to investment analysis

Proportion of actively managed listed equity exposed to investment analysis

          Quantitative investment models
        

Proportion of actively managed listed equity exposed to investment analysis

10.2. Indicate which methods are part of your process to integrate ESG information into fair value/fundamental analysis.

          Competitive advantage period (CAP)
        

10.3. Describe how you integrate ESG information into portfolio weighting.

Fundamental equity

As ESG is integrated in the investment analysis, it affects convictions and company valuations and as such is considered in the construction of the portfolio (weights of the stocks). In emerging markets strategies ESG is also incorporated in country weights. 

Quantitative equity

All quantitative strategies incorporate ESG restrictions in their portfolio modelling. All quantitative portfolios are managed to have as good or better an ESG score than the benchmark. And on E, S and G separately the portfolios should also score better than the benchmark. In 2019 two improvements were made: a decarbonized value factor is incorporated for all strategies and the company assessed RobecoSAM scores are added to the factor that assesses quality for all quantitative strategies, both affecting the portfolio weighting of stocks.

Sustainable Focus

For our sustainable range Smart ESG scores are used in the portfolio construction. For quantitative strategies, the Smart ESG score of the portfolio should be at least 20% better than the benchmark. For fundamental strategies the 20% worst companies are excluded and the portfolio should score at least as good as the benchmark on total Smart ESG score.

10.4. Describe the methods you have used to adjust the income forecast/valuation tool.

Fundamental equity

To quantify return potential for an individual stock, we identify five value drivers: revenue growth, margin development, invested capital needed, competitive advantage period and risk (as defined by a discount factor). To assess the fair value of a stock, these five factors are estimated and applied in our valuation tools

Quantifying the impact of ESG factors on companies' valuation takes place in three steps. The first step is to identify the most material issues - i.e. those ESG issues that may substantially affect the company's business model and value drivers - either positively or negatively and identifying red flags. The second step is to analyze the impact of these material factors and red flags on the individual company. These first two steps are done in close collaboration between the RobecoSAM SI Research analyst and the Robeco fundamental equity analyst. In the third and last step, the Robeco fundamental equity analyst estimates the impact of the ESG factors and the associated competitive advantages and disadvantages to the five value drivers (see above) of the company.

Quantitative equity

Our factor model incorporates CO2 emissions to decarbonize the value factor and company assessed SAM ESG scores in the quality factor.

10.6. Additional information. [OPTIONAL]

Material ESG information in economic analysis applies to our Emerging Markets team where the top down country selection and the cost of capital is affected by the Country Sustainability Ranking.

Examples of developments in 2019:

  • In 2019 a qualitative review of the ESG integration sections of the investment cases for the Emerging markets and Asia Pacific teams were done. Results were shared and discussed.
  • Continuing quantitative research efforts on sustainability bore fruits. One prime example is our ‘decarbonized value’ research, which was finalized ánd implemented in the quantitative equity strategies in 2019. The equity value factor exhibits high environmental footprints as measured by greenhouse gas (GHG) emissions, water use, waste generation, and energy consumption. This is partially due to its structural tilt towards asset-heavy companies and sectors such as energy, utilities, and materials. We have designed a methodology to improve the environmental footprint of the conventional value factor without lowering its return premium.
  • Our EM team increased coverage from 3,400 to almost 4,000 companies and to 125 datapoints per company in their ESG dashboard.

We refer to the SI section of our website where many of these issues are discussed: https://www.robeco.com/en/key-strengths/sustainability-investing/ 
And to the ESG integration document: https://www.robeco.com/docm/docu-esg-integration.pdf 


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