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.
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.
We combine the various data sets to create a holistic view of a company’s 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
Exclusion of companies with controversial business areas and practices.
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.
Data on patents that represent new return opportunities and a possible improvement in the sustainability of an issuer in the future.
ESG metrics address specific aspects such as carbon footprint, waste intensity and water consumption – with wide variations between sectors.
Data on external factors that can be traced back to a company’s production process.
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.
Dr. Veronika Herzberger, Executive Director, Portfolio Management
What our ESG reporting covers:
- Overview of sustainability factors (portfolio vs. benchmark)
- Contribution to active ESG exposure by sector
- Contribution to active ESG exposure highest/lowest 10 (individual stocks)
- 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)
- 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)
- 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)
- Impact of the portfolio on the 17 SDGs on a scale from +10 (significant contribution) to -10 (significant impairment)