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).
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.
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.
Shareholders are the owners of companies and can exercise their voting rights at general meetings to push through sustainability concerns. An effective voting rights policy can bring about possible changes through a complete analysis and lead to better investment decisions. Customer value can be increased and indirect benefits for the economy and the environment can be delivered.
As of Q4 2020, C-QUADRAT will be advised by IVOX Glass Lewis on ESG voting in selected mandates. In this way, our ESG guidelines will be incorporated into the general meetings.
Our ESG product family consists of UCITS-compliant single securities funds, funds of funds and special mandates, which are managed according to a discretionary and a quantitative approach, taking into account the respective product specifications.
The discretionary approach can be summed up in the terms quality - sustainability - active risk management. Quality refers to the fundamental characteristics of the companies invested in, sustainability refers to the full ESG integration of the strategy, active risk management we see as a cornerstone of our investments.
The aim is to offer a stable portfolio of high-quality companies with strong ESG standards. High-quality companies are usually long-term oriented and thus also financially sustainable. ESG integration is complementary and helps to positively influence overall performance through risk reduction. Active risk management is designed to help align and optimise risk and return.
For us, the principle of sustainability is therefore more than just the pure ESG consideration, but aims overall at the long-term stable development of the company's activities. If, for example, the careful use of resources or the responsible treatment of employees is emphasised, then these concepts overlap with the goal of long-term return on equity and thus the principle of quality.
ESG-Key-Performance-Indicators are sustainability indicators that are particularly important for the performance and risk assessment of companies.
We measure and report on the social and environmental impact of ESG fund investments in the following categories, among others: overall ESG score (and aggregated E, S and G scores), comparison with the MSCI Fund Rating Universe, distribution of ESG ratings, breakdown of ESG ratings by sector, ESG rating sector breakdown, ESG controversy score distribution, carbon footprint, weighted average carbon intensity and an exclusion list by sector, business activity and global standards.
Current ESG Report of the C-QUADRAT GreenStars ESG (pdf file)
Current ESG Report of the C-QUADRAT Europe ESG Serie M (pdf file)
Current ESG Report of the C-QUADRAT Absolute Return ESG (pdf file)
Current ESG Report of the C-QUADRAT GreenStars Global Equities (pdf file)
Further ESG Reports are available on request.
C-QUADRAT Asset Management is committed to prohibiting direct investments in outlawed weapons. This affects both direct producers of corresponding weapons systems as well as manufacturers of purpose-built components. By outlawed weapons we mean the weapons listed in the Rome Statute of the International Criminal Court: Landmines and cluster munitions. In addition, companies that produce or are involved in the production of uranium munitions are excluded.
All single securities funds managed and advised by C-QUADRAT Asset Management GmbH are subject to the above-mentioned investment restrictions.
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.