Environmental and social criteria and returns are not mutually exclusive

• Investment in renewable energy
• Efficient use of energy and raw materials
• Reduction of CO₂ emissions
• Environmental criteria for production processes and products

• Compliance with core labour rights
• Non-discrimination obligations
• High standards of occupational health & safety
• Fair workplace conditions
• Freedom of association and trade unions

• Transparent measures to prevent corruption and bribery
• Appropriate and transparent executive remuneration aligned with long-term corporate development that takes environmental and social factors into account
• Strengthening shareholder rights

We look behind the scenes. With the help of a comprehensive database of our ESG research provider MSCI, we filter out companies that generate revenue from controversial weapons or are involved in seriously controversial business practices, such as child labour. In addition, companies which achieve high turnover through the mining of thermal coal are excluded, since this is accompanied by significant environmental damage.

At sector level, we analyse which companies perform best in terms of environmental and social characteristics and exclude those with a below-average MSCI ESG Rating relative to their sector peers. This avoids the blanket exclusion of entire industries and creates an incentive for companies within a sector to improve their ESG ratings.

Lastly, the remaining investment universe is assessed qualitatively by M.M.Warburg & CO’s investment experts. Only after taking into account further aspects of ESG and an intensive economic analysis of the investments is release for an investment made.

Through impact investments, we specifically invest in companies and projects that make a measurable positive contribution to environmental or social objectives. We also invest in green bonds—bonds whose proceeds are earmarked for clearly documented environmental projects.

A significant risk when investing with ESG criteria is so-called “greenwashing”, which involves making misleading or unsubstantiated claims about the environmental or social characteristics of investments. We apply the ESG criteria described on this page consistently and disclose our approach transparently.

Through active ownership strategies, we engage in long-term and constructive dialogue with portfolio companies, point out potential for improvement and work toward corresponding changes. We supervise the implementation of our recommendations for action.