Sustainability pioneer Raiffeisen Capital Management
As one of the pioneers in the sector, we oriented ourselves towards sustainability at an early stage already and embarked on the path towards a lasting transformation. Today, more than half of the volume is being managed according to ESG criteria.
The creation of sustainable structures is subject to an ongoing development process. Raiffeisen Capital Management also considers this fact for the issuers in which it invests. A black and white view of things is not particularly useful – with the exception of clearly defined exclusion criteria – if one wishes to promote sustainability. Raiffeisen Capital Management therefore applies an integrated sustainability approach that is based on the following three levels: Avoid, Support, and Influence.
A holistic concept
In the investment process, sustainability is achieved by thoroughly integrating the ESG dimensions. This means that in addition to economic factors, environmental and social aspects as well as (sound) corporate governance are integrated into the investment processes.
E for Environmental
The environmental criteria concern among other things climate protection and climate change, water and marine resources, waste prevention and recycling, and biodiversity.
S for Social
The social aspect takes into consideration among other thinks equality, employment conditions, and investments in people and communities.
G for Governance
Governance covers private as well as public institutions: management structures, remuneration policies, employee relations, etc.
Integration of sustainability
Avoid, support, and especially influence: The interaction of these three elements forms the basis for the responsible, active management of sustainable funds.
Avoid, support, influence
Here, the one aim is to avoid investments in certain business fields or practices and to thus accept responsibility. Furthermore, we see it as our task to promote and to support sustainability and follow a clear best-in-class approach to this end. Raiffeisen Capital Management also succeeds in exerting influence in terms of sustainability through our ongoing communication with companies and through shareholder engagement. The combination of all these levels is a dynamic process and contributes towards the sustainability quality of the involved products.
1. Negative criteria: avoidance and show responsibility
Avoiding controversial business areas and practices is based on the ethical premise of avoiding participation in bad things and is a starting point on the path towards sustainable investment policies. The focus is on an initial ethical positioning, and on avoiding reputational risks. The main instrument is excluding controversial areas of business, and companies and countries (regional entities) which violate certain pre-defined criteria.
2. Best in class: support and empower sustainability*
The next and rather significant level of development can be described as “collaborating for good” and focuses more on integrating ESG research into enterprise analysis and thus into the selection of securities. This approach is also applied accordingly for countries (regional entities) as issuers of debt securities. This thorough integration of ESG research into the investment process (ESG Indicator*) leads to a higher ESG quality and improves the risk profile of the relevant portfolio.
3. Engagement: influence and have impact
The third step of an integrated sustainability concept is engagement: exercising influence on the behaviour of companies, organisations, and consumers. The focus is on corporate dialogue and, in particular, on exercising voting rights. These impacts can fall outside the immediate sphere of return or risk targets for a portfolio, but they should not violate these. The vision of the desired “double dividend” can only really be pursued in a credible manner through engagement.
"The green path" in the sustainable investment process
The green path symbolises the consistent approach of the fund management with regard to ESG integration, commitment and fundamental analysis and leads to actively designed portfolios. Based on internal and external ESG data, a self-developed ESG indicator is calculated for companies and countries, which represents a central decision criterion for investments in sustainability funds. The supporting pillars of the ESG indicator are based on the one hand on the topic or sector assessments, the company assessment and the commitment, in the case of states, it is based on a multi-dimensional sustainable view.
Definition "Future Transformation Topics"
What issues and developments are driving society? What problems need to be solved? Which innovations and scientific findings will bring us forward? What moves people also concerns the economy. And what the economy is concerned with is almost always of great relevance to investors because that is also where capital flows.
Policies, positions and reports
As a sustainably oriented fund company, it is important for us to deal intensively with the ecologically and socially relevant issues of our time and to develop positions on how we stand on these issues and deal with the challenges they entail. We have set out these positions in our policies.
Quality lables and awards
 "Ausgezeichnete Fonds")
Numerous certifications for good performance
Raiffeisen Capital Management (Raiffeisen KAG) is constantly working to improve sustainable investment processes, both internally and with the help of external partners. One visible result of these efforts is the rising number of national and international certifications.
 "Scope Rating AAA")
Scope Rating: top rating again
Scope has rated Raiffeisen Capital Management for the fourth year in a row. As in the previous year, the KAG received the highest rating (the coveted AAA rating) for its excellent quality and competence in managing sustainable fund strategies.
*) The Raiffeisen Kapitalanlage-Gesellschaft m.b.H. continually analyses companies and countries with the help of internal and external research providers. Together with an overall ESG assessment including an ESG risk assessment, the results of the sustainability research are converted into the so-called Raiffeisen ESG Indicator, which is based on a scale of 0 to 100. The assessment is made in consideration of the company’s respective branch of business.