What are sustainability risks?
Sustainability risks are environmental, social and corporate governance (ESG) events or conditions, whose occurrence could have an actual or potential significant adverse impact on the value of an investment. In this context, the sustainability risk can either be a risk in its own right or impact on other risks and contribute as a factor to the significance of these risks. Examples are credit risks/counterparty risks, market price risks, liquidity risks, operational risks, strategic risks, reputational risks.
In order to deal with sustainability risks and to analyse and assess adverse investment decisions on sustainability factors (Principal Adverse Impact), Bantleon GmbH and Bantleon Invest AG have, in view of their size, the nature and scope of their activities and the types of investment assets and financial products made available, managed or advised by them, established extensive processes which explicitly take into account the impact of sustainability risks in the investment decisions. Please refer to the detailed process descriptions in the documents listed below. The underlying ESG criteria are regularly reviewed both before an investment decision is made and for existing investments in the managed investment assets.