Erste Asset Management

Erste Asset Management becomes a climate-neutral fund company

Erste Asset Management becomes a climate-neutral fund company
Erste Asset Management becomes a climate-neutral fund company
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• Erste Asset Management compensates its company-specific CO2 emissions
• CO2 emissions were 373 tons in 2019 (2018: 410t) (calculations by BOKU Vienna)
• Compensation of CO2 emissions by supporting international climate protection projects
• CO2 emissions will be determined for the entire EAM including CEE from 2021 and published annually
• Sustainable investment approach also at fund level: the CO2 intensity of sustainable EAM equity funds is more than 50% below that of the global equity market

Numerous companies increasingly see themselves as responsible for doing something to protect the climate, and for good reasons. The International Energy Agency (IEA) calculates that the CO2 emissions are still too high despite Corona. According to the Intergovernmental Panel on Climate Change, global CO2 emissions must fall to zero by 2050 in order to limit global warming.

Every company causes CO2 emissions, no matter how sustainable and economical it is. Erste AM was one of the first companies in the financial sector, together with BOKU Vienna (University of Natural Resources and Life Sciences), to carry out the comprehensive calculation of corporate greenhouse gas emissions in accordance with international standards at the beginning of 2020.

The calculation was carried out for the years 2018 and 2019 in Austria and certified by experts at BOKU.

Climate protection is not a catchphrase

“First of all, climate protection means recording all emissions and taking the right steps to consistently reduce them. Sustainability and climate neutrality are not just catchphrases for us. We promote and live both as a company, ” emphasizes Heinz Bednar, Managing Director of Erste Asset Management.

During the review, CO2 emissions were divided into three categories in accordance with the international “Greenhouse Gas Protocol”: Scope 1 for emissions that arise directly at the company, e.g. the amount of fossil energy burned in one’s own combustion system or fuel for company cars.

Scope 2 emissions are emissions that arise indirectly through the operation of the company (e.g. purchased energy such as electricity or district heating). By far the most difficult emissions to determine are Scope 3 emissions, which result from upstream value chains and the use of the company’s products.

Most companies only include Scope 1 and 2 in their calculations, but Scope 3 in particular contains large amounts of emissions to be taken into account.

The way to a climate-neutral fund company

To compensate, there is on the one hand the mandatory CO2 market for the largest CO2 emitters in Austrian industry. In accordance with national and EU requirements, they have to measure, reduce, and report their CO2 quantities and, if necessary, offset them by purchasing CO2 certificates. On the other hand, there is a so-called voluntary market, on which climate-friendly companies or private individuals can offset their CO2 quantities.

Erste AM has opted for the second way – also due to its obligation as the largest sustainable fund manager in Austria – and supports two international projects with the help of its partner BOKU. A project in Ethiopia for the reforestation and regeneration of local forests in North Gondar.

With this reforestation project, around 11,194 tons of CO2 are to be offset over 30 years. Another project concerns forest protection in the Colombian rainforest (REDD + project). The aim is to protect a 600 hectare core area and 7,000 hectares of adjacent areas from deforestation.

“Our primary goal is to further reduce CO2 emissions as a company through specific measures. Climate neutralization through projects is a complementary step for us to be CO2 neutral as a company, ” Bednar emphasizes.

Examples of further reducing in-house CO2 emissions are the increased distribution of so called job tickets to reduce emissions on the way to work, increased use of video conferences, and the reduction of business trips. Support for climate projects is another measure with which Erste AM fulfills its responsibility as a pioneer in the financial sector.

Furthermore, the comprehensive determination of CO2 emissions is to be expanded to include the subsidiaries in the CEE region in the coming year.

CO2 intensity of sustainable funds more than 50% below that of global equity market

The topic of sustainability and ESG criteria (environmental, social and governance) was also integrated in all Erste AM corporate divisions. Since the beginning of 2020, more than 50 retail funds have been managed on the basis of integrated ESG criteria.

In 2015, Erste AM was the first fund company in Austria to sign the Montréal Carbon Pledge. This international investor initiative was launched with the aim of making a long-term contribution to reducing greenhouse gases. Erste AM publishes the CO2 emissions of the companies held in the equity funds every year.

The CO2 intensity of the EAM equity funds considered is more than 25% below that of the global equity market and, if the sustainable equity funds are taken into account, even more than half of global emissions.

About us:

With a sustainable investment volume of 13.4 billion euros (as of December 31, 2019), in a total of 50 sustainable mutual funds and several special funds, Erste AM is a pioneer and market leader in Austria in the sustainability sector. In addition, Erste AM takes on a pioneering role in the field of ethics and sustainability: Erste AM launched the first environmental equity fund in 2001, which has been managed in cooperation with WWF Austria since 2006.

Legal note:
Prognoses are no reliable indicator for future performance.

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Legal disclaimer

This document is an advertisement. Unless indicated otherwise, source: Erste Asset Management GmbH. The language of communication of the sales offices is German and the languages of communication of the Management Company also include English.

The prospectus for UCITS funds (including any amendments) is prepared and published in accordance with the provisions of the InvFG 2011 as amended. Information for Investors pursuant to § 21 AIFMG is prepared for the alternative investment funds (AIF) administered by Erste Asset Management GmbH pursuant to the provisions of the AIFMG in conjunction with the InvFG 2011.

The currently valid versions of the prospectus, the Information for Investors pursuant to § 21 AIFMG, and the key information document can be found on the website www.erste-am.com under “Mandatory publications” and can be obtained free of charge by interested investors at the offices of the Management Company and at the offices of the depositary bank. The exact date of the most recent publication of the prospectus, the languages in which the key information document is available, and any other locations where the documents can be obtained are indicated on the website www.erste-am.com. A summary of the investor rights is available in German and English on the website www.erste-am.com/investor-rights and can also be obtained from the Management Company.

The Management Company can decide to suspend the provisions it has taken for the sale of unit certificates in other countries in accordance with the regulatory requirements.

Note: You are about to purchase a product that may be difficult to understand. We recommend that you read the indicated fund documents before making an investment decision. In addition to the locations listed above, you can obtain these documents free of charge at the offices of the referring Sparkassen bank and the offices of Erste Bank der oesterreichischen Sparkassen AG. You can also access these documents electronically at www.erste-am.com.

N.B.: The performance scenarios listed in the key information document are based on a calculation method that is specified in an EU regulation. The future market development cannot be accurately predicted. The depicted performance scenarios merely present potential earnings, but are based on the earnings in the recent past. The actual earnings may be lower than indicated. Our analyses and conclusions are general in nature and do not take into account the individual characteristics of our investors in terms of earnings, taxation, experience and knowledge, investment objective, financial position, capacity for loss, and risk tolerance.

Please note: Past performance is not a reliable indicator of the future performance of a fund. Investments in securities entail risks in addition to the opportunities presented here. The value of units and their earnings can rise and fall. Changes in exchange rates can also have a positive or negative effect on the value of an investment. For this reason, you may receive less than your originally invested amount when you redeem your units. Persons who are interested in purchasing units in investment funds are advised to read the current fund prospectus(es) and the Information for Investors pursuant to § 21 AIFMG, especially the risk notices they contain, before making an investment decision. If the fund currency is different than the investor’s home currency, changes in the relevant exchange rate can positively or negatively influence the value of the investment and the amount of the costs associated with the fund in the home currency.

We are not permitted to directly or indirectly offer, sell, transfer, or deliver this financial product to natural or legal persons whose place of residence or domicile is located in a country where this is legally prohibited. In this case, we may not provide any product information, either.

Please consult the corresponding information in the fund prospectus and the Information for Investors pursuant to § 21 AIFMG for restrictions on the sale of the fund to American or Russian citizens.

It is expressly noted that this communication does not provide any investment recommendations, but only expresses our current market assessment. Thus, this communication is not a substitute for investment advice, does not take into account the legal regulations aimed at promoting the independence of financial analyses, and is not subject to a prohibition on trading following the distribution of financial analyses.

This document does not represent a sales activity of the Management Company and therefore may not be construed as an offer for the purchase or sale of financial or investment instruments.

Erste Asset Management GmbH is affiliated with the referring Sparkassen banks and Erste Bank.

Please also read the “Information about us and our securities services” published by your bank.

Subject to misprints and errors.

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