The portfolio managers of the Impact Funds Mandate make clear choices to build a socially responsible investment portfolio. The individual investment products in which we invest for you are at the forefront when it comes to balancing people, environment and profit.
The asset managers select investment funds in collaboration with ABN AMRO Investment Solutions (“AAIS”), which specialises in selecting investment funds. The fund managers and the sustainability of the investment fund are subject to an extensive due diligence procedure. The mandate promotes environmental and social attributes. This means that investment funds with an above-average environmental, social and governance (“ESG”) performance are selected.
This mandate invests in equity funds, bond funds and alternative investments. All investments in the portfolio have a sustainable investment objective. The portfolio is considered as all investments except cash, money market instruments and derivatives. It is possible that part of the portfolio invests with an environmental objective aligned with the EU taxonomy (taxonomy investments), but there is no obligation to include taxonomy investments. The asset manager of the mandate will not use derivatives. The selected investment funds may use derivatives to optimise portfolio management.
The following sustainability indicators are monitored:
- The average ESG risk rating for the portfolio as determined by Sustainalytics;
- CO2 emissions of the portfolio;
- Alignment with the objective of the Paris Climate Agreement to keep global warming well below 2 degrees Celsius;
- Alignment with the Sustainable Development Goals (SDGs) of the United Nations
For this, data is used that is provided by two leading data providers, namely Sustainalytics/Morningstar and the Institutional Shareholder Services group of companies (“ISS”). To select the investment products in which to invest, the investment funds in which the mandate invests - at ABN AMRO's instruction - use a strict investment process based on various sustainability criteria. The process starts with a sustainability test. The underlying stocks, bonds and investment funds are assessed on, among other things, how they operate, governance and impact on society.
Companies that have no policy on, or are involved more than average in, unsustainable products and business processes (tobacco or weapons industry or companies using child labour or animal testing for non-medical applications) are excluded from selection. Companies that do meet the minimum requirements are eligible if they make mainly sustainable products (such as renewable energy production). In addition, 'best-in-class' companies are eligible. Companies that meet the minimum requirements and are not selected as a company with a sustainable product are compared to the sector in which they operate. Herewith, various topics are examined including business ethics, society, environment, dealing with workers and so on. Only companies that perform better than the average level of their sector are eligible. Then is examined which of these companies contribute positively to the United Nations' sustainable development goals.
For our portfolio, we require that the average sustainability score for each fund is at least the average of comparable funds or higher. This gives you an investment portfolio that, in addition to the return, also has a view to sustainability.
Product level related sustainability information Impact Funds Mandate
Precontractual disclosure template Impact Funds Mandate
Transparency Adverse Sustainability Impacts Entity Level
Sustainability
Sustainability is important in ABN AMRO’s investment services, which is why we also apply this within the Sustainable Investing Mandate. We exclude investments in companies that produce controversial weapons or tobacco, as well as avoid incorporating those companies into the portfolio that attach little importance to sustainability.
We use the Morningstar Sustainability methodology for this, which gives every company a sustainability score. Morningstar is a global leader in investment fund information.
For our portfolio, we require that the average sustainability score for each fund is at least the average of comparable funds or higher. This gives you an investment portfolio that, in addition to the return, also takes sustainability into account.
Transparency integration sustainability risks Impact Funds Mandate
Statement of adverse effects on sustainability
ABN AMRO MeesPierson takes into account the main negative consequences of investment decisions and advice on sustainability factors. Sustainability factors include environmental, social and employment issues, respect for human rights, and the fight against corruption and bribery. We adhere to the Sustainability Risk Policy Framework of ABN AMRO Bank NV (“ABN AMRO”). The Sustainability Risk Policy Framework is partly based on the various corporate responsibility codes and on internationally recognised sustainability standards or initiatives to which ABN AMRO adheres. In accordance with the Sustainability Risk Policy Framework and international standards, the following main negative sustainability impacts are taken into account:
- Violation of the 10 principles of the United Nations (“UN”) Global Compact
- Controversies
- CO2 emissions as an indicator of climate change
Engagement is used to encourage companies within the investment universe to improve their business strategy and performance. This also includes environmental, social and governance (“ESG”) aspects.
Transparency Adverse Sustainability Impacts Entity Level
Entity Level PAI disclosure
