Sustainable and responsible investments
Sustainability forms the basis for long-term economic success and is therefore a key investment criterion for long-term investors. In our understanding, sustainability rests on the pillars of economy, ecology and social responsibility, which we do not view in isolation from one another, but as a unit. In all three areas, certain criteria for asset management based on sustainability principles should be met.
Responsible investing has a long tradition at LeanVal Asset Management AG.
On January 22, 2013, LeanVal Asset Management AG (LVAM), was one of the first German asset managers to sign the six United Nations Principles for Responsible Investment (PRI). We are thus committed to taking greater account of social, ethical and ecological aspects (Environmental, Social and Corporate Governance Aspects, or ESG for short) in our investment transactions:
- We will incorporate ESG issues into our investment analysis and decision-making processes.
- We will be active shareholders and consider ESG issues in our investment policies and practices.
- We will encourage companies and entities in which we invest to provide appropriate disclosure regarding ESG issues.
- We will drive the acceptance and implementation of the principles in the investment industry.
- We will work together to increase our effectiveness in implementing the principles.
- We will report on our activities and progress in implementing the principles.
We have already taken account of the increasing focus on ESG issues in almost all areas of our company in recent years and are constantly expanding our expertise in taking sustainable issues into account both in corporate management and in the design of our products.
The United Nations (UN)-sponsored initiative of institutional investors is based on the premise that the global challenges of the future cannot be solved at the political level alone, but require close cooperation with the private sector. The Principles for Responsible Investment, developed by 20 of the world’s leading capital investors, is a voluntary best practice standard in investment and business policy to which signatories commit.
Our principles and guidelines for responsible investment
The European Disclosure Regulation, which came into force on March 10, 2021, defines the transparency and sustainability criteria in the financial sector (Sustainable Finance Disclosure Regulation / SFDR). Financial market participants must provide and publish ESG-related information on their financial products. With its entry into force, EU-wide regulations will apply with regard to transparency in sustainability risks and the provision of sustainability-related information for financial products.
The aim is to increase sustainable investments through the increased transparency requirements and thus contribute to a more sustainable development of the economy and society. For this purpose, the investment products offered are divided into 3 categories (“Article 9”, “Article 8” and “Article 6”) based on the ESG criteria applied in the investment process.
Consideration of ESG criteria in our products
We have integrated sustainability risks into the investment process of our investment strategies. LVAM AG manages financial products that are classified according to Art. 6, Art. 8 and Art. 9. The Gamma Plus Fund, for example, is a financial product classified under Art. 8 SFDR. This fund thus promotes social and environmental features.
The LeanVal Climate Target Fund, on the other hand, is an Art. 9 SFDR classified financial product that has a clear sustainable investment objective. This investment objective states that investments will be made exclusively in companies that already meet the Paris Climate Agreement of less than or equal to (≤)1.5°C target for 2050. Further information can be found under the respective product subpage.