Sustainable investments

Why sustainable investments?

Sustainability is an increasingly prominent slogan. There is a growing need among investors for investments which fulfill environmental standards as well as social criteria. However, for C-QUADRAT sustainability means much more than just satisfying a momentary trend. For us, sustainability means handling the resources entrusted to us so as to ensure that they meet the needs of today’s generation without encroaching upon those of future generations.

Some years ago, C-QUADRAT already established its Vision Microfinance brand which is operative in the field of microfinance. Microfinance offers people in emerging markets and developing countries the chance to bring about a long-term improvement in their own circumstances and thus also in the opportunities for future generations.

C-QUADRAT’s ESG funds are the second key area of focus for sustainable investment opportunities. As well as financial indicators, they also consider non-financial factors (ESG criteria).

What does ESG stand for?

ESG stands for environment (E), social criteria (S) and governance (G). Companies are analyzed on the basis of these three aspects, providing potential investors with a detailed picture of a specific company and its commitment to operating in a responsible manner.

ESG thus encompasses much more than just financing of environmentally-friendly technologies. A company which is guided by ESG criteria undertakes to operate ethically and sustainably.

Companies with high ESG scores have a proven track record of superior long-term performance by comparison with their competitors with lower ratings. ESG funds support responsible activities, generate non-financial returns and also offer the opportunity for long-term above-average yields.

What is engagement?

Engagement entails a process of dialogue between investors and companies, with the goal of identifying possible ESG weaknesses and encouraging the company in question to adopt more sustainable practices.

Investors may enter into a process of engagement with companies either individually or in tandem with others. Past experience has shown that it is generally more effective to encourage companies together with other asset managers and asset owners, with a strong single voice. For this reason, C-QUADRAT belongs to an engagement network which seeks to encourage multinational global corporations to adopt consistent sustainability policies.

This engagement network has impressively demonstrated that it is possible to sensitise companies the world over to the issue of sustainability and to encourage them to adopt more responsible business practices.

The European SRI Transparency logo signifies that C-QUADRAT commits to provide accurate, adequate and timely information to enable stakeholders, in particular consumers, to understand the Socially Responsible Investment (SRI) policies and practices relating to the fund. Detailed information about the European SRI Transparency Guidelines can be found on www.eurosif.org. The Transparency Guidelines are managed by Eurosif, an independent organisation. The European SRI Transparency Logo reflects the fund manager’s commitment as detailed above and should not be taken as an endorsement of any particular company, organisation or individual.

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