Disclaimer
Please read this important information before proceeding further. It contains legal and regulatory notices relevant to the information contained on this website.
The information contained in the Website is NOT FOR RETAIL CLIENTS - The information contained in the Website is solely intended for professional investors, defined as investors which (1) qualify as professional clients within the meaning of the Markets in Financial Instruments Directive (MiFID), (2) have requested to be treated as professional clients within the meaning of the MiFID or (3) are authorized to receive such information under any other applicable laws. The value of the investments may fluctuate. Past performance is no guarantee of future results. Investors may not get back the amount originally invested. Neither Robeco Institutional Asset Management B.V. nor any of its affiliates guarantees the performance or the future returns of any investments. If the currency in which the past performance is displayed differs from the currency of the country in which you reside, then you should be aware that due to exchange rate fluctuations the performance shown may increase or decrease if converted into your local currency.
In the UK, Robeco Institutional Asset Management B.V. (“ROBECO”) only markets its funds to institutional clients and professional investors. Private investors seeking information about ROBECO should visit our corporate website www.robeco.com or contact their financial adviser. ROBECO will not be liable for any damages or losses suffered by private investors accessing these areas.
In the UK, ROBECO Funds has marketing approval for the funds listed on this website, all of which are UCITS funds. ROBECO is authorized by the AFM and subject to limited regulation by the Financial Conduct Authority. Details about the extent of our regulation by the Financial Conduct Authority are available from us on request.
Many of the protections provided by the United Kingdom regulatory framework may not apply to investments in ROBECO Funds, including access to the Financial Services Compensation Scheme and the Financial Ombudsman Service. No representation, warranty or undertaking is given as to the accuracy or completeness of the information on this website.
If you are not an institutional client or professional investor you should therefore not proceed. By proceeding please note that we will be treating you as a professional client for regulatory purposes and you agree to be bound by our terms and conditions.
If you do not accept these terms and conditions, as well as the terms of use of the website, please do not continue to use or access any pages on this website.
Sustainable Investing
Exclusion
An exclusion is the act of barring a company’s securities from being purchased for a portfolio due to business activities that are deemed unethical, harmful to society, or in breach of laws or regulations.
ESG criteria is used to determine whether a company complies with the desired level of standards. If not, it can be removed from consideration in the investment process, denying the company access to capital.
Exclusions typically involve the makers of controversial weapons such as cluster bombs or nuclear warheads and those making indisputably harmful products such as tobacco and firearms, along with companies engaged in human rights abuses such as child labor. Companies engaged in serious corporate governance breaches such as bribery or corruption and that show no willingness to resolve these issues, are also typically excluded.
The matter of what to exclude largely remains an act of conscience for investors. This is why most use the principles contained within the UN Global Compact as a benchmark for what is considered to be unacceptable business practices. For some products, exclusion is required by law: Dutch legislation, for example, forbids the ownership of companies making cluster bombs or other contentious munitions.
Climate change
As the world combats climate change, companies heavily involved in thermal coal production, deforestation and unacceptable levels of pollution have joined the ranks of the routinely excluded. In July 2020, Robeco expanded the range for exclusions for companies involved in thermal coal, oil sands and Arctic drilling. This was, however, subject to the proportion of their business engaged in these activities.
Robeco set the threshold of 25% of revenues derived from thermal coal and oil sands, and 10% from Arctic drilling, for its Sustainability Inside range of funds. Stricter levels of 10% of revenues for thermal coal and oil sands, and 5% for Arctic drilling, were imposed for the Sustainability Focused and Impact Investing ranges of funds.
Exclusion is only used as a last resort when engagement is either not possible, or has failed to achieve the required objective due to a lack of cooperation from the company. Generally, it is possible to engage on corporate behavior, but not on a product. This means excluding an industry such as tobacco, since it cannot change the harmful nature of its product; but engaging with an energy company to try to persuade it to move more of its business away from fossil fuels.
Countries can also be excluded if they are subject to sanctions by the United Nations, European Union, or other international authorities. This bars Robeco from buying sovereign bonds from governments on the exclusion list, or from purchasing equities or credits or companies that are domiciled in these countries. This currently includes Iran, North Korea and Zimbabwe.
For more information, see Robeco’s exclusion policy and exclusion list.