How does classification work?
Independent classification is a means of showing how Robeco funds score on important aspects of responsible investing in terms of our own targets in this area and in comparison with third-party products.
Is there a relationship between classification and return?
Robeco believes investment funds that invest responsibly and make structural efforts to integrate ESG factors into their investment policy will perform better in the long run than funds that do this less or not at all.
Why make a classification?
Robeco wishes to be transparent and to reveal the instruments we use within the scope of our responsible-investing policy. Classification enables us to make more effective comparisons with funds offered by other companies.
How are Robeco funds classified?
Robeco has had its investments funds classified by an independent company called Sustainalytics. Sustainalytics provides international research data for the financial sector. Sustainalytics researches companies worldwide and is specialized in analyzing the ESG performance of companies, institutions and countries.
What are the aspects used to classify companies?
Sustainalytics has examined a large number of Robeco funds in the light of four aspects of responsible investing:
• Integration of ESG factors;
• Active ownership;
• Sustainability;
• Exclusion policy.
Why these aspects?
The four selected aspects reflect the principal differences between funds engaged in responsible investing, and represent criteria widely used in this sector.
Example
Sustainalytics subdivided the results of their examination of the above aspects of responsible investing into three categories: basic, intermediate and advanced. For the aspect ESG integration, this results in the following classification:
• No. Integration of environmental, social and governance factors is not applicable.
• N.a. This fund does not take environmental, social and governance factors into account in its investment analyses or decision-making process.
• Basic. This fund takes environmental, social and governance factors into account in its investment analyses or decision-making process.
• Intermediate. This fund takes environmental, social and governance factors into account in its investment analyses or decision-making process. Moreover, it does so consistently.
• Advanced: This fund takes environmental, social and governance factors into account in its investment analyses or decision-making process. Moreover, it does this consistently, and this process, including the information sources used, is transparent.
Which Robeco funds have not been assessed?
• Structured products and notes are not classified. These are structured products such as Multi Market Bonds.
• Products from our boutiques Harbor Capital Advisors, Sage Capital, Transtrend, Canara Robeco are not included yet.