francefr
Sustainable Investing Glossary

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. 

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 funds, 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 funds 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.

See also: ESG, ESG integration, Best in class, Positive screening, Negative screening
Générer des performances qui profiteront à tous
Générer des performances qui profiteront à tous
Investissement durable
Energy and supply chain shortages emphasize need for Smart solutions
Energy and supply chain shortages emphasize need for Smart solutions
Global electrification is vital if the world is to decarbonize and meet the Paris Agreement.
30-11-2021 | Vidéo produit
Combiner intégration ESG, données carbone & engagement actif
Combiner intégration ESG, données carbone & engagement actif
Suite à la COP26 qui s’est tenue début novembre, il est intéressant de revenir sur l’approche durable de nos stratégies New World Financials et FinTech, classées Article 8 selon la réglementation SFDR, et la manière dont nous identifions les opportunités d’investissement tout en répondant aux enjeux de demain.
29-11-2021 | Vision
Green is the new color, also for emerging markets
Green is the new color, also for emerging markets
Emerging markets have been significantly increasing their investments in green energy generation.
25-11-2021 | Vision
Logo

Information importante

L’information publiée dans les pages de ce site internet est plus particulièrement destinée aux investisseurs professionnels.

Certains fonds mentionnés dans le site peuvent ne pas être autorisés à la commercialisation en France par l’Autorité des Marchés Financiers. Les informations ou opinions exprimées dans les pages de ce site internet ne représentent pas une sollicitation, une offre ou une recommandation à l’achat ou à la vente de titres ou produits financiers. Elles n’ont pas pour objectif d’inciter à des transactions ou de fournir des conseils ou service en investissement. Avant tout investissement dans un produit Robeco, il est nécessaire d’avoir lu au préalable les documents légaux tels que le document d’information clé pour l’investisseur (DICI), le prospectus complet, les rapports annuels et semi-annuels, qui sont disponibles sur ce site internet ou qui peuvent être obtenus gratuitement, sur simple demande auprès de Robeco France.

Nous vous remercions de confirmer que vous êtes un investisseur professionnel et que vous avez lu, compris et accepté les conditions d’utilisation de ce site internet.

Je n’accepte pas