Investment process

 

Investing responsibly means thinking outside the box and not just pursuing purely financial interests, but instead focusing on social and ecological perspectives. This is not so much about ideologies, but about preserving natural resources for future generations. In this context, non-sustainable development becomes a risk for the company.

 

Responsible use of resources. A company’s sustainability does not depend on its products alone. Its rating is also based on how it treats its customers, suppliers, employees and shareholders as well as society and the environment. Every sector has companies that stand out thanks to their excellent sustainability performance. The goal is not necessarily for companies to already be perfect in all aspects, but rather for them to credibly demonstrate that they are on a positive path towards using their own resources responsibly.

 

 

Shareholder engagement. For responsible investors, maintaining a dialogue ("shareholder engagement") with companies is extremely important. The goal is to make companies aware of the topic of sustainability and to motivate them to act more responsibly. Shareholder engagement is often associated with controversies or accidents that have already occurred. Raiffeisen Capital Management (Raiffeisen Kapitalanlage GmbH) stands for "honest" sustainability. In this, the investment firm collaborates with external research specialists and also maintains direct contact with companies and issuers. The dialogue with companies plays an important role in motivating them to act in a socially responsible manner. The Raiffeisen Capital Management SRI team is in contact with an average of 200 companies and issuers every year. A key aspect of this is the influence exerted by the sustainable investments.The shareholder engagement dialogue is conducted with the company by representatives of Raiffeisen Capital Management either as an individual investor or together with other like-minded responsible investors, which is referred to as collaborative engagement. When it comes to the impact of shareholder engagement, it is important to remember that the more assets are invested in SRI funds, the more weight the arguments of responsible investors will carry with a company’s representatives.  

 

 

The ESG dimensions (environmental, social and governance) of sustainable analysis

In the management of sustainable funds issued by Raiffeisen Capital Management, companies undergo a detailed sustainability analysis in addition to a financial analysis. The incorporation of sustainability information allows risks to be better assessed in the three categories of environmental, social and corporate governance concerns.

ESG Dimension Umwelt

Environmental concerns (e.g. volume of CO2 emissions, consumption of resources)

 

ESG Dimension Soziales

Social concerns (e.g. working conditions, supply chain)

 

ESG Dimension Corporate Governance

Corporate governance concerns (e.g. independence of supervisory bodies, remuneration)

 

Nachhaltigkeitsfonds Ausschlusskriterien If a company violates one of the criteria, such as the production of nuclear power or the violation of human rights, it is excluded from the investment universe. In addition, there are separate exclusion criteria for countries in their role as issuers of government bonds, such as particularly high defence budgets. These exclusion criteria can help to avoid risks that are associated with a major financial impact (such as the nuclear disaster in Japan).

 

 

This is a marketing material of Raiffeisen Kapitalanlage-GmbH. As of June 2016.

 

Legal notice