Philosophy

ESG Portfolio Management is an asset manager for investment funds and segregated accounts, which are embedding the Sustainable Development Goals (SDGs) of the United Nations. Every investment aims to follow at least one of the seventeen SDGs.

SDG
www.unpri.org

Corporates are excluded when they operate in the areas:

Weapon production, nuclear energy, coal or fracking, oil sands, or if the companies generate more than five percent of sales in the areas: alcohol, gaming, pornography, oil, tobacco, gene technology or animal testing.

Countries are excluded when they are involved in severe controversies, death penalty, conflicting human rights, corruption (source:  Transparency International), or conflicting with non-proliferation treaty, authoritarian regime (source: Freedom House Ranking).

ESG (Environmental, social and governance) criteria are part of the security analysis and selection process besides the economic and financial quality, as they are relevant for the risk and return. (See examples in the graphic). We use data from specialized ESG rating agencies and data providers. The ESG minimum rating for our holdings is BBB. We aim for portfolio ESG ratings of AAA.  

ESG assessment and rating

We do not invest in those government bonds and corporations with poor ESG quality or significant controversies or incidents like conflicting human rights.

The fund management engages actively to enhance the ESG quality of issuers. For this purpose the fund managements enters a constructive dialogue with the management to reduce the investment’s risk and develop performance opportunities.

ESG Portfolio Management GmbH provides financial services that comprise investment broking and investment advice, solely for the account and under the liability of AHP Capital Management GmbH, Hochstraße 29, 60313 Frankfurt (section 2 (10) KWG).