The goal of responsible investing is to focus on investments, which are sustainable or which explicitly emphasise the importance of Environmental, Social, and Corporate Governance factors (ESG). That aim at supporting the functioning and long-term stability of the financial markets as long-term sustainable income depends on stable, well-functioning, and solidly managed companies.
Our investment approach
Within the investment department of Erste Asset Management, a team of several experts focuses exclusively on the question of sustainable investments. The investment process of Erste Asset Management follows an integrated approach that includes positive and exclusion criteria, engagement criteria, and the best-in-class method. We call the dialogue that we establish with the companies that we invest in “engagement”. We request information via letters, conference calls, and company visits, and frequently demand improvements. The core of this process is the ESG analysis, which refers to environmental, social, and (corporate) governance aspects.
Our sustainability process makes use of all tools available and is not limited to the exclusion of some controversial sectors and companies. We combine the highest ethical standards with a thorough analysis of economically relevant social and economic risks. Our goal is to improve financial performance while achieving a sustainably positive impact on the environment and society.
Our selection process
Companies that we invest in have to meet a number of criteria. Nuclear power and arms production and trade constitute the most important exclusion criteria. Companies are also immediately divested from the fund in proven cases of corruption or child labour. Companies that were admitted into the investment universe are managed according to aclearly structured approach and in cooperation with numerous internal and external specialists. An ethics advisory board, specifically set up for this purpose, appraises whether investments do in fact comply with sustainable criteria.