THE SUSTAINABILITY PROCESS
Our selection process for suitable investments consists of two processes - the sustainability process and the value investment process
Titles are subjected to a sustainability rating. Sustainability specialist ACATIS Fair Value Investment supplies the stock universe for the funds. An independent sustainability advisory board monitors the sustainability criteria of the funds.
First, issuers that breach our exclusion criteria are filtered out over several steps:
· Companies (or their suppliers) that violate the prohibition on child labour. Companies involved in strategic armaments and weapons, embryonic stem cell research, green genetic engineering, corruption and financial fraud, or companies that generate fossil fuels. The criterion “companies excluded from the Norwegian sovereign wealth fund” was also added.
· Also excluded are companies that derive more than 5% of their sales revenues from e.g. alcohol, nuclear energy, gambling, pornography and tobacco.
Only companies with a positive ESG point score for environment, social issues and governance remain in the sustainability process.
Subsequently, very positive companies that generate a portion of their sales revenues with products or services that contribute to achieving the sustainable growth targets are filtered out.
FAIR VALUE EXCLUSION PROCESS FOR COMPANIES
The sustainability rating for countries, supranational organisations or local entities is also very refined. These issuers are assessed on the basis of the following criteria (among others): Possession of nuclear weapons, death penalty, share of nuclear energy over 15%. Countries that are deemed non-free states according to Freedom House, that have not ratified the UN Convention on Biodiversity, that are rated low in the corruption perception index or that breach the Non-Proliferation Treaty have also been excluded.
Corruption is spreading in more and more countries. Our filter excludes countries affected by corruption. At this time, 94 countries are subjected to the country rating, and only 31 comply with our ethics criteria.
FAIR VALUE UNIVERSE
The result - approximately 3,000 companies and bond issuers, and 31 countries that meet our ACATIS Fair Value criteria.
Imug Vigeo Eiris
Our sustainability rating agency analyses the title universe according to our own sustainability process and delivers the results exclusively to ACATIS Fair Value Investment AG every quarter.
imug rating, based in Hannover, is the leading German provider for strategy and implementation of ESG investments as well as for sustainability ratings. As a partner for the financial market, business and the public sector, the company has stood for sustainable ESG strategies, data and reporting as well as credible second party opinions, sustainability ratings and expert opinions for over 25 years.