As an asset management company, we believe we have two reasons to be committed to sustainability. The first is social in nature, since capital has the greatest power when it comes to initiating and implementing change processes within a company and correcting them where necessary. This is why we favour ecologically sound bond investments such as green bonds and focus our equity investments on socially relevant themes while facing up to our responsibility as a sustainable shareholder. We therefore invest primarily in companies that operate ethically and sustainably in their respective fields.
At the same time, however, there are also financial arguments in favour of sustainable investment. A company’s ability to include stakeholders such as regulators successfully in its strategy or to form a clear picture of business risks relating to climate change is vital in determining its competitive position and share price growth. Taking account of these criteria can improve a portfolio’s risk/return profile over the long term.
Sustainable investment is thus integral to Bantleon’s approach: environmental, social and governance (ESG) criteria are taken into account in investment decisions. In addition to excluding stocks through conventional sustainability screening, the integration of ESG information adds value to the traditional investment process. The aim is to gauge risks more effectively as well as to generate more sustainable and ultimately higher returns.
Our sustainability process comprises four steps: