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).
ERSTE WWF STOCK ENVIRONMENT
An investment in the ERSTE WWF STOCK ENVIRONMENT fund supports companies with a positive impact on the environment.
Please see the legal risk notes at the end of this page.
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 77,4 % of the footprint of the Global equity market index (31.12.2017). 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 44 % 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
ERSTE RESPONSIBLE RETURN - The ESG magazín
Náš magazín o udržitelném rozvoji ERSTE RESPONSIBLE RETURN - ESG magazín pojednává o tématech, které jsou jak kontroverzní, tak aktuální a informují o našich zodpovědných fondech.
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Disclaimer
This material is an advertisement and serves only to provide additional information about the mutual funds managed by Erste Asset Management GmbH ("Erste AM").
Basic documents about the mutual funds are Fund rules ("Statut") and the Key Investor Information. Statutes of the Funds are submitted to the Czech National Bank in accordance with Czech law and their current versions are available at the registered office of Erste AM or on the website www.erste-am.cz.
The analyses and conclusions published in this material are of a general nature and do not take into account the personal needs of individual investors in terms of income, financial situation or risk tolerance. They are in no way investment recommendations. Any use of this information should therefore be preceded by consultation with a professional investment adviser to ensure that the planned investment is in line with the investor's needs and priorities and to inform the investor of the potential risks of the particular investment.
Where any return is mentioned in the information material, it should always be based on the principle that past returns are no guarantee of future returns. Any investment involves the risk of volatility in value and changes in exchange rates and the return on the original investment and the amount of any profit is in no way guaranteed. Past performance figures include the effect of fees, commissions and taxes associated with the management of the Fund. Only entry and exit fees related to the distribution of units, if any, are not included.
Erste AM and the managed investment funds registered in the Czech Republic are subject to the supervision of the Czech National Bank.