German investment manager, ESG Portfolio Management, impressed the Environmental Finance Sustainable Investment Awards judges with its SDG Evolution Flexibel multi-asset fund, in a category it last won in 2020.

The fund invests according to ESG criteria and aims to make a positive impact regarding the UN sustainable development goals (SDG).

Investment examples include Schneider Electric, Sims, SMA Solar and Vestas.

ESG Portfolio Management says it actively engages with companies to improve ESG and SDG impact and to reduce GHG emissions, pollution, and waste

The fund has an MSCI ESG score of 10 and a AAA ESG rating, which is the maximum available. It says all individual positions within the fund have a rating of at least A, above the minimum MSCI ESG rating of BBB.

ESG Portfolio Management says it has also achieved SDG impact levels above 60% for this fund whereas MSCI ESG regards levels above 20% as having a "very high impact".

The fund measures and reports on regulatory dimensions such as principle adverse impacts (PAIs,) EU taxonomy alignment, and the percentage of sustainable investments in line with Article 2 of the EU's Sustainable Finance Disclosure Regulation (SFDR).

ESG Portfolio Management says carbon reduction is a key priority and the firm claims that by 2050 its holdings will contribute to a global warming scernario of less than 1.75 degrees¹. It aims to bring this number under 1.5 degrees. By comparison, companies listed on the German Stock Index (DAX) are forecast to cause on average a warming of more than four degrees at current projections.

The fund offers daily liquidity and has an average credit rating of minimum BBB (currently BBB+). The equity allocation ranges between 20% and 45% and the firm uses an internal credit rating forecasting models including relevant ESG data.

Christoph Klein, the managing partner of ESG Portfolio Management, commented: "The entire team of ESG Portfolio Management is delighted. It is a positive message that a small company like ours can win such an important award. It shows that dedication, purpose, and passion can lead to good outcomes. We hope this will motivate many others."