Erste Asset Management

Sustainable performance via engagement and dialogue

Sustainable performance via engagement and dialogue
Sustainable performance via engagement and dialogue
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The topic of sustainability offers a great opportunity to discuss the question of engagement. By engagement, we understand the dialogue between investors and shareholders and the respective companies in order to suggest changes and to bring them about in a targeted fashion.

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Such dialogue may come in various forms. Pressure may be exerted through targeted voting and shareholder motions at AGMs. Dialogue with companies also comes in the form of conversations with Management, conference calls, workshops, open letters etc. In this context, engagement is largely a collaborative project. Of course, it makes sense in some cases – e.g. for acutely pressing issues – to approach a company on one’s own. But the old adage according to which one is stronger together also applies to this area. Therefore, Erste AM is member of several investor initiatives such as Climate Action 100+ (CA100+; we have already highlighted our engagement with CA100+ at an earlier stage). One focal point of our employees in the CA100+ initiative is the oil and gas industry. Here, Erste AM is in active dialogue with OMV AG as local lead investor.

Focus on climate goals

Since 2019, the focus of our dialogue with OMV AG has been on the issues that we had defined in a bigger circle with other investors as part of CA100+. Criteria relevant to the oil and gas industry are for example whether a company agrees with the criteria of the Paris climate goals, whether there are medium to long-term goals to cut CO2 emissions, whether the remuneration structure reflects the climate and sustainability goals, or whether the company lobbies for or against the Paris climate goals. During this period, the focus in our talks with OMV AG has been on what climate goals the company has defined, to what extent the remuneration structure reflects the climate and sustainability goals, and on lobbying activities and membership in lobbies. Over those months and quarters, we have achieved a lot. For example, OMV AG announced its long-term emission targets in a press release and thus issued a net zero emission target for 2050 in addition to the already defined goals about emission intensity of products and divisions until 2025. This year, the company has also launched a report that discusses its membership in  various lobbying groups on the basis of their compatibility with the Paris climate goals. This is an important contribution to transparency because the membership in lobbies and other organisations also allows for effective publicity for the Paris climate goals. The remuneration policy has also been expanded by the aspect of sustainability, and the company has allowed for emission reduction targets.


The aforementioned example illustrates in concrete terms how dialogue and engagement can instigate thought processes and change. Dialogue helps create an awareness especially with regard to companies in sectors with particularly intense emissions, and it opens up the opportunity to exert pressure together with like-minded investors. However, the positive change is no reason to regard the dialogue process as complete. Climate change will keep us busy for years to come, which is why the engagement will have to be stepped up in that area. This is also why membership in global investor initiatives such as CA100+ are important, because they facilitate concerted action, which is preferable to local and uncoordinated measures.

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



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 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 A summary of the investor rights is available in German and English on the website and can also be obtained from the Management Company.

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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

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.

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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.

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