ESG Portfolio Management is an asset manager of investment funds and segregated accounts, embedding the UN Sustainable Development Goals (SDGs).
Each of its investments aim to contribute to at least one of the 17 SDGs, and its overall portfolio is estimated to be aligned with a global warming pathway of only 1.75°C by 2050.
Corporates are excluded from investment by ESG Portfolio Management when they operate in the areas of weapon production, nuclear energy, coal or fracking, or oil sands. The ESG minimum rating for holdings is BBB, and the firm aims for portfolio ESG ratings of AAA.
Germany-based ESG Portfolio Management measures the entire fund using MSCI's ESG methodology. MSCI measures the turnover which can clearly be attributed to specific SDGs, avoiding double counting. Through these metrics ESG Portfolio Management achieves SDG impact levels above 40% for its fund; for reference, MSCI regards levels above 10% as "very high impact".
Up to 10% of the fund's assets is invested in impact bonds such as those issued by Deutsche Lichtmiete or Nextbike.
Commenting on the win, Christoph Klein, managing partner at ESG Portfolio Management, said: "We understand ESG implementation as extended risk management so that we and our clients can sleep better. We invest in attractive companies with positive SDG impact to make the planet a better place. This is a good reason to wake up in the morning."
The fund manager has received the Platin level (maximum rating) by Telos ESG check, and won the Deutsche Exzellenzpreis 2020. ESG Portfolio Management is also an active PRI signatory, and received A rating for its 2019 PRI report. EF