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
Sustainable companies
Sustainable companies are those which score highly on environmental, social and governance (ESG) factors in their business operations. The degree to which a company is sustainable can be a crucial factor in deciding whether its stocks and bonds should be included in an investment portfolio. Robeco routinely screens all companies under consideration for inclusion in portfolios as standard practice, using different ESG thresholds depending on the type of fund or strategy.
Screening mostly takes two forms – negative and positive – backed by research and access to reliable data. Negative screening essentially means excluding those companies that do not meet pre-determined ESG standards and typically includes makers of controversial weapons, companies engaged in human rights abuses, or corporate governance failures such as corruption. Robeco also excludes all tobacco companies and those engaged in the extensive production or use of thermal coal, subject to certain thresholds.
Positive screening means examining the ESG credentials of the companies that remain in the investment universe after the exclusions have been carried out. Different companies will get varying scores according to their business, and the E, S and G will have differing levels of importance according to the sector. For example, a mining company may score poorly on environmental management and social factors, but be superbly managed and score highly for governance. Conversely, banks may score highly for environmental and social factors, but poorly for governance due to their excessive risk-taking during the financial crisis.
Creating returns that benefit the world we live in
Some industries may also face contradictions in their ESG profiles. Electric car makers, for example, are seen as the solution to removing reliance on fossil-fuel powered internal combustion engines, and would naturally be considered as ‘sustainable companies’. However, some raw materials needed for car batteries such as cobalt or rare earth minerals are often produced in regions with poor labor practices and environmental records. A complete picture must therefore be established to ascertain a company’s true ESG credentials and whether it should be labeled as sustainable.
As not all ESG factors are equally relevant, it is also important to only consider the most financially material factors – ESG issues that directly affect the company’s financial performance. This is a vital component in ESG integration in the decision-making process for investment strategies, as screening needs to focus on metrics that would ultimately affect the company’s ability to create value, and therefore its future share price. Ultimately, companies and investment strategies are judged on their financial performance, not the headlines they may make. Robeco has long believed that more sustainable companies create more value over time, as ESG allows for a better lens to assess business risks as well as opportunities.
