australiaen
Robeco earns ‘leader’ label from Morningstar for ESG

Robeco earns ‘leader’ label from Morningstar for ESG

25-11-2020 | Insight
Robeco has been named by Morningstar as a ‘leader’ for its commitment to ESG.
  • Carola van Lamoen
    Carola
    van Lamoen
    Head of Sustainable Investing

Speed read

  • Robeco recognized as ESG ‘leader’ by Morningstar
  • Three strategies are assessed as being ‘advanced’
  • ESG is integrated across Robeco’s entire range of funds

The fund rating agency has developed a new qualitative measure called the Morningstar ESG Commitment Level which aims to identify the extent of commitment to environmental, social and governance factors within individual strategies and across the organization. It uses a four-tier scale: leader, advanced, basic and low.

Its first round of evaluations consisted of 40 asset managers and 107 individual strategies from across the globe. Robeco was awarded the top accolade of leader status. Three Robeco funds achieved the ‘advanced’ rating for ESG commitment.

In assessing each asset manager, three pillars were used, and then rolled into the overall ESG Commitment Level. This gave a 40% weighting to a firm’s philosophy and process, 30% to the resources it devoted to sustainability, and 30% for its commitment to active ownership.

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

Three ‘advanced’ strategies

Out of the 107 strategies assessed, Robeco Sustainable European Stars, RobecoSAM Smart Energy and RobecoSAM Sustainable Water were given advanced status. The criteria for this included the ability to deliver desirable ESG outcomes at the portfolio level, such as lower carbon emissions relative to a market benchmark, or advancing the UN Sustainable Development Goals.

The Morningstar ESG Commitment Level will ultimately be provided for all strategies for which the firm produces its Morningstar Analyst Rating for funds.

“ESG is integrated across all asset classes at Robeco, exemplifying its strong commitment to sustainable investing,” Morningstar said. “The investment teams on both sides closely collaborate with the firm’s 37 sustainability experts, ensuring that ESG is well-integrated in their investment processes and monitored in the portfolios.”

A pioneer since the 1990s

A pioneer of sustainable investing since the mid-1990s, Robeco has operated an active ownership team since 2005 and has integrated ESG into the investment process since 2010. ESG is now integrated into the entire range of fundamental equity, fixed income, quantitative and bespoke sustainability strategies, representing EUR 144 billion of assets under management at June 2020.

“Morningstar awarding us this status confirms our leadership in sustainable investing,” says Carola van Lamoen, Head of the Robeco Sustainable Investing Center of Expertise. “This reflects the hard work of many colleagues, in building out our research, ESG integration and active ownership activities, and furthering our overall sustainable investing approach.”

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