If you want your investments to do more than just get you returns, choose ABN AMRO. As one of the three main Dutch banks, we are in a unique position to help you contribute towards making the world a better place for people, the planet and society.
While investments can be profitable, they are also associated with risks. You could lose all or part of your initial investment.
My investments are sustainable. For me, that's an extra return. My actual returns are average to reasonably good, but my investments help to make the world a better place, and I see that as an extra return.
If you opt for sustainable investments with ABN AMRO, you will be investing in companies that are front-runners in striking and maintaining a balance between ‘people, planet & society’. We look for ‘sustainable realists with a long-term vision’. Or to put it better: companies that work on innovative sustainability challenges, use raw materials sparingly, pollute less, have better contact with people and recognise their opportunities and risks.
We have put together several guidelines that help us determine whether we consider an investment sustainable. These guidelines are the foundation of our sustainable investment policy.
We select the shares in your portfolio carefully and only include a company in your sustainable investment portfolio if we can give them a positive assessment on the following points.
The ESG rating (Environment, Social and Governance) represents a company’s assessed sustainability risks. This rating is based on data concerning the environment, society and good governance. In the first place, this involves an assessment of a company's material sustainability risks. These depend on, among other things, which sector a company operates in. For instance, the material sustainability risks of an oil company will differ from those of a clothing manufacturer. The second step is to examine how a company manages these risks. Better governance can lower the risk. This data is provided by Sustainalytics, a sustainability research company. The best rated companies may be viewed as sustainable investments. This concerns:
As standard, we exclude companies that manufacture certain products, such as weapons. When it comes to other products, such as fur, tobacco and gambling-related products, we exclude those companies that generate more than 5% of their revenues through these products.
Last but not least, we exclude companies that are involved in controversial practices and do not have a policy on these practices. For instance, controversial energy extraction, such as shale gas drilling, otherwise known as fracking. Companies that generate more than 5% of their revenues through these practices are also excluded.
It is impossible to exclude child labour in practice, since it often occurs in supply chains that are not transparent. A good example of this is the textile supply chain. Suppliers in the chain are almost never directly involved in child labour activities, even though they are involved indirectly. It is more relevant to look at how companies handle the instances of child labour that they find in their supply chains. For instance, do they enter into a dialogue with the supplier in question? Are they honest about where their products are being manufactured? Do they perform checks and are these checks effective? All these aspects are weighed when assessing a company's level of sustainability.
We are eager to invest in emerging countries in order to contribute to the United Nations (UN’s) Sustainable Development Goals (SDGs). These countries often need financing in order to achieve economic progress, fight poverty and invest in basic needs. However, companies in these countries are often associated with corruption, pollution and poor working conditions.
We look at the ESG (environmental, social and governance) scores and controversies of listed companies in emerging countries and only select the best companies. We have also selected a number of funds that invest in non-listed companies in emerging countries and therefore do not have an ESG score. The managers of these funds ensure that the companies have a sound ESG policy.
We do not consider any manufacturers of weapons to be sustainable and we therefore exclude them all from sustainable investments. This of course includes controversial weapons, such as nuclear weapons. But does that mean we should also exclude government bonds issued by countries that have their own nuclear weapons, like France for instance? France has signed the Non-Proliferation Treaty and is a member of NATO, so the country will only deploy its nuclear weapons if absolutely necessary and only as a response to an attack. At the same time, France makes significant efforts to achieve the climate goals, thereby making a positive contribution to combating climate change. This is why we do not exclude government bonds issued by France and other countries that have signed the Non-Proliferation Treaty.
The use of GMOs (genetically modified organisms) is subject to national and international regulations. However, not all food manufacturers are transparent about the inclusion of GMOs in food. GMOs are also relatively new, which means that a lot of people question the long-term effects and are therefore opposed to the modification of food products. At the same time, the global population and therefore also the demand for food is rapidly growing, so the use of GMOs may be needed to meet this demand. We take a very critical look at use of GMOs when making investment choices, but do not exclude it completely.
Animal testing is necessary and sometimes even legally required in order to ensure the safety and quality of medicines and food in particular, as well as some other products. Such testing remains necessary for the time being, despite great resistance from society. It goes without saying that this requires careful consideration in our investment choices.
Modern nuclear energy is a relatively ‘clean’ form of energy. Its carbon emissions are very low and modern nuclear power plants are much safer than their older counterparts, while also producing less nuclear waste. Nuclear energy will form an important part of the energy mix needed to meet the objectives of the Paris Agreement, but it remains problematic in the public’s eyes, despite the minimal amount of nuclear waste generated by modern plants. We generally will not invest in companies whose only activity is the generation of nuclear energy, but we may invest in energy companies that provide nuclear energy alongside other types of energy. Or better yet, we may invest in ‘green bonds’ issued by these companies. Green bonds are bonds for which the yield is specifically used for renewable energy projects, for instance wind turbines and solar panels. Companies in the nuclear energy sector are also considering investing in renewable energy and we aim to encourage this by investing in these bonds.
If you have any questions or simply want to know how your investments are doing, don’t hesitate to call one of our Investment Advisers — they will be happy to answer your questions. Stay up to speed and in control at all times, and leave the rest to us.
When it comes to alternative investments, we look to maximise the sustainable impact through microfinancing, fair-trade financing and renewable energy projects. We also actively look for companies whose product helps to make the portfolio more sustainable. 
