71
1.
Avoid
and demonstrate
responsibility
Exclusion
absolute relative
screening
value-based norm-based
Best in class
thematic investing
Impact investment
2.
Support
and promote
sustainability
Raiffeisen Bank International | Sustainability Report 2018
Management Overview Foreword
of sustainability
Responsible
banker
Fair partner –
Human Resources
Fair partner –
Inhouse ecology
Engaged
citizen
GRI index and
Assurance report
Sustainability philosophy and investment processes
There are different approaches to integrating ESG into investment. However, all of them are aimed at taking the
social responsibility of investment into account to a greater extent alongside the income and risk targets.
An integrative sustainability concept
The interaction of all three elements if possible – avoid,
support, influence - is a prerequisite for the responsible
management of sustainable funds. This development can
be understood as a cyclical process.
ESG stands for
Environment,
Social,
Governance
Engagement
exercising voting right
company dialogue
individual
collaboration
platforms
3.
Influence
and unfold effect
through dialogue
and engagement
Sustainability at Raiffeisen Capital Management as an integrative concept
Source: Raiffeisen KAG
By its very definition, sustainability is active management. The goal of systematically enhancing sustainability in
the core business is ensured by a dedicated “Sustainable Investments” team as well as an already large group
of specialists in all of the fund and asset management teams working in close cooperation. This is reflected in our
active commitment in the sense of exercising our right to vote or actively communicating with listed companies on
ESG issues. In 2018, similarly to the previous year, 297 active company engagement activities took place and
149 votes were cast either directly at general meetings or via specific platforms. An annual engagement report is
published on the website (rcm.at).
Raiffeisen KAG’s sustainability philosophy as implemented in the sustainability funds consists of three main
elements: The first is the expanded information base that comes from taking sustainability elements into account
(ESG). This extra-financial information – in addition to traditional financial criteria – leads to a larger set of data
for the analysis of companies and issuers compared with traditional investments. The second point that follows
this is the broader basis for selection decisions and risk reduction. Sustainable analyses can improve the risk
profile of the portfolio. In general, the responsibility and future viability of the investment is the central focus.
Ecological, stakeholder-relevant, and governance risks are considered in the investment process and improve
the risk profile of the portfolio. Thirdly, the positive influence on yield that comes with sustainability needs to be
mentioned. Investing in the most sustainable companies and issuers leads to stable yields that are at least
comparable with those of traditional investments.