ESG Approach

Leading the way with sustainability

Whether it's the climate, demographic change or social justice: Around the world, politics, business and society are facing major challenges. We want to create opportunities out of these challenges. For us as a wealth and asset manager, for society, but above all for our customers, who expect us to deliver above-average performance that is not at the expense of others or future generations.

We recognize the ever-increasing importance and structural benefits of considering ESG aspects for our clients. This is why we understand the value of integrating ESG factors into our investment decisions, as it helps us to better manage material ESG risks within our portfolios and to identify opportunities. The active dialogue with companies and issuers is a particularly important tool in this regard.

: ESG investment strategies consider environmental (E), social (S) and governance (G) aspects in addition to traditional fundamental aspects such as micro- and macroeconomic information. The term "ESG investments" encompasses a range of approaches and is often used interchangeably with terms such as "ethical screening," "sustainable/ responsible investing," and even "impact investments."
: In our view, the social and environmental sustainability of a business model and the integrity of management teams are crucial factors for creating long-term value. To minimise certain risks arising from controversial business areas or problematic business practices, we use ESG exclusion criteria. We also place a strong focus on positive factors that promote and sustain earnings growth, such as good corporate governance. In addition to our own research, we use external ESG data to understand the sustainability profile of companies and issuers. We strive to identify material factors that are critical to improving long-term returns and the sustainability profile as part of a comprehensive ESG investment process.
: We offer several ESG investment strategies with varying degrees of ESG consideration to meet differing client needs across equities, fixed income and multi-asset: ESG SCREENED, ESG INTEGRATED, ESG TARGETED and IMPACT FOCUSED. The level of sustainability consideration of our ESG strategies can be differentiated into an Avoid, Assess or Support focus.
Avoid
Our ESG SCREENED strategies are based on the mandatory exclusion of certain business areas and controversial activities to minimise material ESG risks.
Evaluate
Our ESG INTEGRATED strategies apply a combination of ESG integration tools. These include the application of exclusion criteria, ESG analysis, and positively influencing through active ownership activities.
Support
Our ESG TARGETED and IMPACT FOCUSED strategies apply targeted ESG approaches, such as positive screening based on a variety of ESG or impact criteria.
: We monitor ESG risks relating to controversial business activities and practices throughout the entire holding period of an investment. We consider ESG factors as criteria for buying and selling companies and issuers using external ESG data and internal research. Regular interaction with the issuers’ management teams plays a crucial role in gaining a good understanding of relevant ESG issues and emerging risks. In addition, companies involved in ESG controversies are identified based on the ESG controversy analysis of our external ESG data provider. A flagging system is used for this purpose: In case of serious ESG controversies ("orange flag") within our ESG INTEGRATED, TARGETED and IMPACT FOCUSED strategies, the portfolio management enters into a direct engagement with the company. This occurs both in the case of existing holdings and in the case of potential new investments. We consistently exclude companies associated with particularly serious ESG controversies ("red flag") from an investment.

Do you have any additional questions about our ESG approach?

You can find further answers here

ESG at Berenberg –Progress based on tradition

Strong credentials in sustainable investments
- As the oldest private bank in Germany, Berenberg showcases consistent business ethics and operates with a long-term strategic view
- We have a long history managing sustainable mandates for our clients and offer dedicated sustainable funds and wealth management strategies
Focus on forward looking ESG integration and internal analysis
- We explore material sustainability aspects of companies and issuers that can have an impact on financial success in the medium and long term
- Comprehensive internal ESG analysis by responsible portfolio managers, supported by external data, allows for a deep understanding of ESG risks and opportunities
Active exchange as an essential component of our ESG approach
- To be ideally positioned for future challenges and opportunities, we are consistently developing our ESG approach in collaboration between investment and ESG experts
- We actively work with companies and issuers to address and support necessary change

How can you invest sustainably with Berenberg?

Our active exchange

Direct and open dialogue with companies and issuers, referred to as active engagement, enables us to address relevant ESG aspects, gain important insights and encourage greater transparency - before and after the investment decision.

The exercise of voting rights provides another effective way to share our views on good corporate governance as well as other ESG aspects with companies and to positively influence their business policies.

Active exchange in 2023

79 engagements on ESG topics
3.959 vote recommendations on agenda points for 283 company meetings

You can find further information on our engagements and provision of vote recommendations in our policies and our Active Ownership Report.

ESG Office

We have created a dedicated team - the Berenberg Wealth and Asset Management ESG Office - to define our ESG guidelines and strategy, position ESG investments, further develop our ESG products and integrate ESG into the investment process.

In the ESG Office we define our principles and strategies for sustainable investing. Here, we are driving integration into the investment process.
Rupini Deepa Sobottka, Head of ESG Office