Responsible yield
To Erste Asset Management, sustainable investments do not only mean the application of ethical beliefs, but to achieve social and ecological added value. To make this added value quantifiable, we have developed a number of sustainability indicators which compare the effects of sustainable investments with traditional indices.
The measuring results, in turn, affect investment decisions. The aim is to continuously improve the positive impact of our actions.
Make environmental benefits quantifiable
In cooperation with an external partner, we developed a methodology for the WWF STOCK ENVIRONMENT to illustrate the contribution to environmental protection made by companies in the environmental equities fund every year (Note: the contribution by the different companies is shown as total rather than as weighted by the respective portion invested in the fund).
Montréal Carbon Pledge
The Montréal Carbon Pledge was launched on 25 September 2014 at the “PRI in Person“ meeting in Montréal. This initiative is supported by PRI (Principles for Responsible Investment) and UNEP FI (United Nations Environment Programme Finance Initiative). The Montréal Pledge tries to facilitate a higher degree of transparency in connection with the carbon footprint of equity portfolios and wants to contribute to its reduction in the long run. As the first investment company in Austria, Erste Asset Management has decided to sign the agreement.
By signing the Montréal Pledge investors undertake to measure and publish the carbon footprint of their portfolio on an annual basis.
Carbon footprint of Erste AM equity funds
According to the CO2 data of our research partner MSCI ESG and Bloomberg, and our ESG research team, the CO2 intensity of the Erste AM equity mutual funds is at 63,1 percent of the footprint of the Global equity market index (June 2024). This calculation takes into account our traditional regional and country funds as well as our thematic and sector funds. Therefore the comparison with the Global equity market is only a general guide value.
The comparison with the responsible equity funds of Erste Asset Management yields interesting results. According to these calculations, ERSTE RESPONSIBLE STOCK GLOBAL, as flagship among the responsible funds, comes out with a CO2 exposure of 45,9 percent of Global equity market. This highlights the importance of title selection in the sustainability process.
Calculation method of the CO2 footprint of a portfolio
Erste AM establishes the CO2 footprint of its portfolios in a multi-step process: external rating agencies calculate the greenhouse emissions for all securities in the respective fund. Then the weighted average of the emissions of the securities held are calculated for each fund portfolio. The experts establish the total footprint of the measured equities held by Erste AM by assigning weights across all funds, with the weights resulting from the share of the respective fund in terms of total assets under Erste AM’s management. The CO2 footprint accounts for the emission of all six greenhouse gases as defined by the Kyoto Protocol. The emission of the various gases is translated into a carbon dioxide equivalent (tCO2e: tons of carbon dioxide equivalent) to ensure the different gases are comparable in terms of their harmful effects on the climate at one glance. In order to facilitate comparability between companies of different sizes the emission of the carbon dioxide equivalent is related to sales in millions of USD. This standardisation is defined as CO2 intensity.
Data sources: MSCI ESG and Bloomberg
Disclaimer
This document is an advertisement. Please refer to the prospectus of the UCITS or to the Information for Investors pursuant to Art 21 AIFMG of the alternative investment fund and the Key Information Document before making any final investment decisions. Unless indicated otherwise, source: Erste Asset Management GmbH. Our languages of communication are German and English.
The prospectus for UCITS (including any amendments) is published in accordance with the provisions of the InvFG 2011 in the currently amended version. Information for Investors pursuant to Art 21 AIFMG is prepared for the alternative investment funds (AIF) administered by Erste Asset Management GmbH pursuant to the provisions of the AIFMG in connection with the InvFG 2011. The fund prospectus, Information for Investors pursuant to Art 21 AIFMG, and the Key Information Document can be viewed in their latest versions at the website www.erste-am.com within the section mandatory publications or obtained in their latest versions free of charge from the domicile of the management company and the domicile of the custodian bank. The exact date of the most recent publication of the fund prospectus, the languages in which the Key Information Document is available, and any additional locations where the documents can be obtained can be viewed on the website www.erste-am.com. A summary of investor rights is available in German and English on the website www.erste-am.com/investor-rights as well as at the domicile of the management company.
The management company can decide to revoke the arrangements it has made for the distribution of unit certificates abroad, taking into account the regulatory requirements.
Detailed information on the risks potentially associated with the investment can be found in the fund prospectus or Information for investors pursuant to Art 21 AIFMG of the respective fund. If the fund currency is a currency other than the investor's home currency, changes in the corresponding exchange rate may have a positive or negative impact on the value of his investment and the amount of the costs incurred in the fund - converted into his home currency.
Our analyses and conclusions are general in nature and do not take into account the individual needs of our investors in terms of earnings, taxation, and risk appetite. Past performance is not a reliable indicator of the future performance of a fund.