Stewardship vs. greenwashing

Stewardship is an integral part of First AM: we are committed to acting as responsible representatives for the assets we manage.

By integrating sustainable factors, we pursue social and environmental justice and have mechanisms and tools in place to avoid greenwashing. Our mission is also to align our sustainability approach with the investment needs of our clients to build a solid foundation for the future.

Our adherence to international best practice principles

Our Stewardship Principles provide us with a framework to ensure that our investment strategy is consistent with our sustainability approach.

As a signatory to the UN Principles of Responsible Investing (PRI), we are committed to the highest level of transparency and disclosure in our reporting and to acting in accordance with the SDGs (Sustainable Development Goals) and the UN Global Compact.

Erste AM also strictly adheres to global stewardship codes such as International Corporate Governance Network (ICGN) and Responsible Business Conduct for institutional investor (based on OECD guidelines).

In line with these principles, we use our in-house tools to integrate ESG factors into our investment decision-making process. All of our mutual funds are subject to a minimum set of ethical standards, and we use our expertise to regularly review the ESG profiles of our holdings and ensure the highest possible level of accountability for our funds and portfolios.

Since 2016, our adherence to the PRI Montreal Pledge has also required us to measure and publish the carbon footprint of our equity and bond funds.

Supporting responsible corporate action

As asset managers, it is not only our responsibility to ensure the sustainability of our own activities, but also, on the basis of “active ownership,” of the companies in which we are invested.

Engagement – i.e. direct dialogue with companies – and the exercise of voting rights (in all our mutual equity funds) is our most effective tool for promoting social responsibility, environmental protection and transparency.
By establishing a constructive dialogue with companies, we find it easier to assess their alignment with our sustainability criteria and to influence the integration of ESG factors into their management decisions.

Because we are stronger together, Erste AM is also an active member of investor associations and works closely with partners to increase clout on an international basis. Together with others, we thus work against climate change and for the transformation to a green economy.

We are currently actively leading engagement projects with Austrian giant OMV (as part of the Climate Action 100+ project) and have been successfully working with them since 2014 to achieve defined emission reduction targets.

We are also currently involved in several initiatives to intervene in human rights controversies (child labor in the cocoa sector, human rights violations in Xinjiang).

Stewardship: a powerful tool in the fight against greenwashing

Despite growing efforts by the EU (i.e. the EU regulation on sustainable financial reporting) to bring down greenwashing, there are limits to what laws can do against this phenomenon. Therefore, it is important that we take our share of responsibility and join the movement.

Our stewardship approach not only provides us with the tools to embed sustainability at the heart of all our investment processes, but also allows us to better understand the intentions of our invested companies in order to truly act responsibly. In other words, it allows us to ensure the highest possible ethical standards, minimize risk, and drive the kind of change that reflects our values.

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

 

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.