Responsible action has become an extremely important factor in business, private households and investment. The symbol for this is the three big letters: ESG.
E stands for Environmental, e.g. the investment of companies in renewable energies, environmentally compatible products and low emissions.
S stands for social aspects, compliance with labour law, occupational health and safety and fair pay, and
G for governance, responsible corporate management, e.g. measures to prevent corruption and bribery or anchoring sustainability goals at board level.
The Frankfurter Vermögen AG fully supports the requirements of a sustainable capital investment.
The evaluation of the companies included in our investment products with regard to ecological, ethical and social principles is the responsibility of a neutral, external cooperation partner: Sustainalytics, a company belonging to Morningstar, continuously reviews the positions of our funds for compliance with ESG-compliant sustainability criteria.
Our funds are fundamentally aligned in such a way that the stocks they contain correspond on average to a low-risk rating from Sustainalytics. In this sense, we strive for a homogeneous structure, i.e. poor ratings of individual stocks are not compensated for by good ratings of other stocks. Of course, earnings power is always the primary consideration when selecting stocks, whereby we always give preference to stocks with a better ESG rating if the earnings expectation is the same or similar. Within the ESG rating methodology, issues are identified and considered in stock selection that may affect the company's enterprise value in a predictable way. In addition, critical categories such as Arctic exploration, coal, animal testing, plant genetic engineering, pesticides, weapons, nuclear activities, embryo research are transparently highlighted and either completely excluded or excluded in the stock selection process if the revenue share exceeds a specified percentage.
Contrary to common prejudices, today's investor does not have to choose between sustainability or return, between a good conscience or good performance. He can have both! Sustainable investments have at least the same chances of performance as conventional investments. Often the performance is even much better. Those who invest with an eye to the future do not have to forego returns. Because companies that act in a forward-looking and fair manner are often more flexible, innovative and solidly positioned than others.
ESG-compliant corporate governance can even protect investors to a certain extent from misconduct by management. The numerous scandals in recent years clearly show that compliance with corporate governance is closely linked to capital protection for investors.