Data-driven ESG: integrating sustainability into portfolios and making it measurable 

The amount and variety of data on sustainable investing is becoming ever more extensive. As a quantitative asset manager, we identify the main currents in the sea of ESG data for you. We make ESG risks measurable and manage them according to your individual specifications.  

ESG is multidimensional: there is no single magic metric showing how sustainable an investment is. At the same time, the quantity and quality of data on sustainable investment is constantly improving. This creates a good foundation, but also poses challenges for institutional investors:  

  • The variety of data providers makes the choice more and more granular.
  • Data is often difficult to compare because it looks at different perspectives. 
  • The increasing regulatory requirements and demanding stakeholder targets.  

“Sustainability is quantifiable and measurable! Benefit from our experience in processing large amounts of data.”

 

Johannes Probst, Associate Director, Portfolio Management

Our solution: smart integration of ESG data 

As a quantitative asset manager, we draw on existing infrastructure for the analysis and exploitation of sustainability data. This way, we efficiently extract the relevant information for your sustainable portfolio.  

Holistic perspective 

We combine the various data sets to create a holistic view of a companys ESG performance  with correlation analysis and scoring, using classic quant techniques. 

Integration into the investment process 

We integrate ESG data into a quantitative process for portfolio construction, for example as complementary risk factors. 

Individual adaptation of the data 

We can customise the data used to manage your mandate according to your individual specifications, thematic focus or regulatory requirements. 

Measurable dimensions of sustainability 

Controversies/business engagement 

Exclusion of companies with controversial business areas and practices. 

Risks 

Including ESG ratings, which provide an average value that shows whether the respective company can be classified as good or bad when ESG aspects are taken into account. 

Opportunities 

Data on patents that represent new return opportunities and a possible improvement in the sustainability of an issuer in the future. 

Key figures 

ESG metrics address specific aspects such as carbon footprint, waste intensity and water consumption  with wide variations between sectors. 

External effects 

Data on external factors that can be traced back to a company’s production process. 

SDG

Impacts on the United Nations Sustainable Development Goals (e.g. promotion of gender equality or conservation of biodiversity). 

Regulatory requirements are increasing 

The EU taxonomy establishes criteria for determining the sustainability of investments. This serves to achieve the EU’s transition to net zero emissions by 2050. An important part of this is the Disclosure Regulation.  

“How do companies take sustainability risks into account? How does a financial product meet the sustainability classification? The Disclosure Regulation creates transparency, but also leads to extensive reporting obligations.”

 

Dr. Veronika Herzberger, Executive Director, Portfolio Management

What our ESG reporting covers: 
  • ESG score 
    • Overview of sustainability factors (portfolio vs. benchmark)
    • Contribution to active ESG exposure by sector
    • Contribution to active ESG exposure highest/lowest 10 (individual stocks)
  • Carbon footprint 
    • Overview of carbon footprint (greenhouse gas emissions converted into CO2 equivalents, measured in t CO2/mn $ of sales, sum of Scope 1 and Scope 2).
    • Contribution to active carbon footprint by sector
    • Contribution to active carbon footprint highest/lowest 10 (individual stocks)
  • Water footprint 
    • Overview water footprint (water consumption measured in m³/mn $ revenue)
    • Contribution to active water footprint by sector
    • Contribution to active water footprint highest/lowest 10 (individual titles)
  • Waste footprint 
    • Overview of waste footprint (waste production measured in t/mn $ turnover)
    • Contribution to active waste footprint by sector
    • Contribution to active waste footprint highest/lowest 10 (individual titles)
  • SDG
    • Impact of the portfolio on the 17 SDGs on a scale from +10 (significant contribution) to -10 (significant impairment)
Jorre Willemse

Contact

Jorre Willemse
Head of Client Relations International
T +49 (0) 69 743 84 0

 

Further Information