australiaen
Seven steps to ESG integration

Seven steps to ESG integration

02-05-2017 | Research

Integrating sustainability into the investment process is a strategic choice at Robeco – but it hasn’t happened overnight. So how is it done?

  • Masja Zandbergen - Albers
    Masja
    Zandbergen - Albers
    Head of sustainability integration

Speed read

  • Robeco uses a seven step process for integrating sustainability
  • ESG is used across the equity, quant and credit fund ranges
  • Research and active ownership underpin the investment process

There is no right or wrong way to do it – all professional investors will approach it differently, and use different criteria, based on what their clients or beneficiaries want. Our new white paper entitled ‘Seven steps to ESG integration – the Robeco approach’ lays down for the first time how such an important part of Robeco’s investing philosophy and landscape was created over time.

In short, the steps are:

  1. Defining your investment belief, as this will define your sustainability investing strategy. 
  2. Embedding it in the organization, and then seeing the multiplier effect. 
  3. Creating an integrated framework, which for Robeco means… 
  4. Having access to leading research, from our sister company RobecoSAM; 
  5. Integrating ESG, where each investment process requires its own approach; and 
  6. Using active ownership to enhance performance and take responsibility 
  7. Finally, there is raising the bar, as global challenges continue to shape markets.

At the heart of Robeco’s strategy is the firm belief – now backed by a long track record – that:

  • Integrating ESG factors into investment analysis and decision-making processes leads to better-informed investment decisions; 
  • ESG factors can act as an ‘early warning radar’ for risks that are not yet reflected in asset values, which means their use improves risk/return ratios; 
  • Considering ESG therefore leads to more comprehensive assessments and valuations, resulting in the earlier discovery of investment opportunities; and
  • Exercising ownership rights through voting and engagement enables us to create additional long-term value, while also taking responsibility as an asset owner.

“Putting in place a good process in line with our beliefs clearly goes well beyond screening and engagement, and implies the use of ESG information in all stages of the investment process, including the investment case and the valuation models used in investment decisions,” says Masja Zandbergen, head of ESG integration at Robeco.

Stay informed on Sustainable Investing with monthly mail updates
Stay informed on Sustainable Investing with monthly mail updates
Subscribe

Leave your details and order the white paper

This report is not available for users from countries where the offering of foreign financial services is not permitted, such as US citizens and residents.

Disclaimer:

I agree to the Robeco Disclaimer and the collection and use of my personal data by Robeco, for the purposes for which such data is collected and used as set out in the Privacy Policy, including for the purpose of direct marketing of Robeco products or services. Your data will be treated with utmost care and will not be passed on to third parties.

Logo

Disclaimer

BY CLICKING ON “I AGREE”, I DECLARE I AM A WHOLESALE CLIENT AS DEFINED IN THE CORPORATIONS ACT 2001.

What is a Wholesale Client?
A person or entity is a “wholesale client” if they satisfy the requirements of section 761G of the Corporations Act.
This commonly includes a person or entity:

  • who holds an Australian Financial Services License
  • who has or controls at least $10 million (and may include funds held by an associate or under a trust that the person manages)
  • that is a body regulated by APRA other than a trustee of:
    (i) a superannuation fund;
    (ii) an approved deposit fund;
    (iii) a pooled superannuation trust; or
    (iv) a public sector superannuation scheme.
    within the meaning of the Superannuation Industry (Supervision) Act 1993
  • that is a body registered under the Financial Corporations Act 1974.
  • that is a trustee of:
    (i) a superannuation fund; or
    (ii) an approved deposit fund; or
    (iii) a pooled superannuation trust; or
    (iv) a public sector superannuation scheme
    within the meaning of the Superannuation Industry (Supervision) Act 1993 and the fund, trust or scheme has net assets of at least $10 million.
  • that is a listed entity or a related body corporate of a listed entity
  • that is an exempt public authority
  • that is a body corporate, or an unincorporated body, that:
    (i) carries on a business of investment in financial products, interests in land or other investments; and
    (ii) for those purposes, invests funds received (directly or indirectly) following an offer or invitation to the public, within the meaning of section 82 of the Corporations Act 2001, the terms of which provided for the funds subscribed to be invested for those purposes.
  • that is a foreign entity which, if established or incorporated in Australia, would be covered by one of the preceding paragraphs.
I Disagree