Responsible
We assess companies on the basis of defined ESG criteria
Strict selection criteria from all perspectives of sustainability
Responsible investing takes ESG criteria into account. This is also the case with integration. ESG stands for:
- Environment
- Social
- Governance
These criteria are incorporated into a specialized ESGenius® rating. This rating forms the basis for evaluating companies. In the Best-in-Class approach, we compare companies within the same sector against defined sustainability criteria. The companies with the best ratings are selected.
These funds comply with Article 8 of the European Union’s Sustainable Finance Disclosure Regulation (SFDR). Please note that investing in securities involves risks in addition to the opportunities described.
ESGenius® –
the centrepiece of our sustainability approach
The ESG analysis is the most important part of our sustainability concept. For this, we use the ESGenius® rating model. With the ESGenius® Score, we assess companies based on their sustainability performance.
This allows us to identify:
- Companies with high ESG risk
- Companies that are not among the most sustainable in their sector
Through this sustainable approach, we exclude certain companies from our investments.
Erste AM ESGenius® Score
The analysis examines key ESG risks, which are assessed using statistical methods. Based on this, the Responsible Investments team at Erste AM develops the Erste AM ESGenius® Score. This score serves as a sustainability rating for companies. Each company receives a rating between 0 and 100.
Best-in-Class Approach
At Erste Asset Management’s investment department, experts focus on sustainable investing. The investment process follows an integrative approach, meaning it consists of several components:
- Positive criteria: In the selection process, preference will be given to companies that meet defined environmental and/or social criteria.
- Exclusion criteria: Companies are excluded if they do not meet the exclusion criteria set out in the relevant investment strategy.
- Engagement: Erste Asset Management engages in dialogue with companies to encourage improvement.
- Best-in-Class: Companies are assessed within their sector on the basis of defined ESG criteria, and those with comparatively better ratings are given preference.
The core of this process is the ESGenius® analysis, which examines factors in the areas of environment, social, and governance.
A company must meet many conditions to qualify as a sustainable investment. There are clear exclusion criteria. For example, investments must not be made in the following areas:
- Controversial weapons
- Nuclear energy
- Weapons production or trade
- Child labor
- Violations of human and labor rights
- Corruption
Companies that meet these conditions are included in the investment universe. These companies are managed according to a clear plan. An advisory board reviews whether the investments are truly sustainable. This board is called the Erste Responsible Advisory Board.
CO2 Carbon Footprint
CO2 risks in the mutual funds of Erste AM
Since 2017, Erste Asset Management has been publishing the CO₂ emissions of its equity funds. Since then, CO₂ risks have been continuously reduced. This is due to two key measures:
- Erste AM has integrated ESG information into all funds. ESG stands for Environment, Social, and Governance.
- Since 2016, Erste Asset Management has excluded investments in the coal sector. This decision is part of its coal policy. This stipulates that companies may derive no more than 5 per cent of their turnover from coal in order to be eligible for investment.
The data comes from MSCI ESG and calculations by Erste Asset Management. They are based on water and revenue data from the 2024 financial year.
Calculation of the CO2 risks in the mutual fixed income funds
Since 2018, Erste Asset Management has been reporting information on CO2 emissions for the entire range of mutual funds. The PRI's Montreal Carbon Pledge Initiative prompted the publication of the carbon footprint. The result of the CO2 emissions of all bond mutual funds of Erste Asset Management was 47.7%. When only sustainable bond funds are considered, the CO2 emissions amounted to 30.6% of the total market.
At the individual fund level, the ERSTE ETHIK ANLEIHEN (11.6%), the ERSTE RESPONSIBLE RESERVE (12.3%) and the ERSTE RESPONSIBLE BOND (19%) performed particularly well.
Mutual equity funds, better than the global equity market
For the seventh time, Erste Asset Management published the cumulative CO2 footprint for its equity funds. The result, which takes into account both sustainable and traditional funds of Erste Asset Management, is again convincing in comparison to the global equity market: The CO2 intensity of the EAM equity funds considered is only 71.3% of the CO2 intensity of the overall market. When considering only the sustainable equity funds, the CO2 intensity is only 57.9% of the global equity market.
The detailed evaluation at the individual fund level shows a very good result for the ERSTE RESPONSIBLE STOCK JAPAN (22.4%), the ERSTE RESPONSIBLE STOCK AMERICA (37.3%), and the ERSTE ETHIK AKTIEN GLOBAL (43.9%).
What does CO2 intensity mean?
There are many methods to calculate a carbon footprint. Erste AM calculates the footprint of its funds using the CO₂ intensity of the companies within the fund. First, the greenhouse gas emissions of the companies in the fund are recorded. This is done by Erste AM’s research partners. There are two types of emissions:
- Scope 1: These emissions are generated directly by the company.
- Scope 2: These emissions are generated indirectly, for example through energy or heat consumption.
The emission values are then normalized, meaning they are related to the company’s revenue. This shows how many tons of CO₂ are emitted per one million in revenue.
In the next step, the CO₂ intensities of the companies in the fund are aggregated into a weighted average. This allows for comparison of how heavily a fund is invested in CO₂-intensive companies. For Erste AM’s footprint, an average was calculated across public equity funds with sufficient CO₂ data.
Why are CO₂ risks important for investors?
Global warming is leading to stricter regulations on greenhouse gases. Companies that do not make their production more efficient will pay higher taxes on their emissions. Therefore, it is also economically sensible to consider the CO₂ intensity of investments.
Water Footprint
Water footprint of the ERSTE RESPONSIBLE Funds
Since World Water Day on March 22, 2017, Erste Asset Management has been publishing the water footprint of its sustainable equity funds. In 2021, the water footprint of the sustainable bond funds was added. With this initiative, Erste Asset Management aims to encourage companies to disclose their water data.
In 2024, the water data was published again. For the equity funds, data was available for approximately 64 percent of the companies. In comparison, in 2017, less than half of the companies had disclosed their water data. For the bond funds, only around 40 percent of the companies provided data in 2024.
The data comes from MSCI ESG and calculations by Erste Asset Management. It refers to the 2024 financial year.
Considering Water Risks in Security Selection
The sustainable funds of Erste Asset Management show strong results. The companies included in these funds handle water more responsibly. The funds perform better than the global equity and bond markets—both overall and in high-risk regions.
ANALYSIS WATER FOOTPRINT: global equity market vs. sustainable equity funds
ANALYSIS WATER FOOTPRINT: global bond market vs. sustainable bond funds
Erste AM conducts a comprehensive ESGenius® analysis with the goal of reducing water-related risks. Sustainability analysts assess how companies use water, examining how and where water is extracted.
For the ESG rating, it is evaluated whether a company operates in water-scarce regions and whether it has high water usage in those areas. Additionally, the company’s measures for more sustainable water use are assessed.
The water intensity of the companies in the funds is calculated. It shows how much water a company consumes. Water intensity is measured in cubic meters per thousand US dollars of revenue. This is based on the company’s water withdrawal data.
Our Responsible Funds
Global sustainability equity fund with a focus on dividends
Global equity fund with a focus on sustainably oriented companies
High-yield corporate bonds with a global focus on sustainability
Focus on growing sustainable companies in emerging markets.
Please note the legal warnings at the bottom of the pages of the individual funds.
FAQs
Responsible investing means investing in a responsible manner. This involves assessing companies not only on the basis of financial criteria; environmental, social and corporate governance factors also play an important role. To this end, Erste Asset Management employs a comprehensive sustainable investment process.
Responsible funds have higher sustainability requirements than integration funds and apply a comprehensive sustainable investment process. Impact funds go one step further and also pursue specific environmental or social priorities.
Companies are assessed on the basis of defined ESG criteria. Various methods are used in this process, including positive and exclusion criteria, as well as the Best-in-Class approach. The ESGenius® analysis forms an important basis for this assessment.
In the Best-in-Class approach, companies within their sector are compared against defined ESG criteria. Companies with comparatively better ratings are given preference. This takes into account differences in sustainability performance between companies within the same sector.
Disclaimer and legal notes
ERSTE ETHIK AKTIEN GLOBAL
ERSTE RESPONSIBLE STOCK AMERICA
ERSTE RESPONSIBLE STOCK GLOBAL
ERSTE WWF STOCK ENVIRONMENT
ERSTE RESPONSIBLE MICROFINANCE
ERSTE RESPONSIBLE STOCK EUROPE
ERSTE RESPONSIBLE STOCK DIVIDEND
ERSTE RESPONSIBLE BOND GLOBAL IMPACT
ERSTE BOND EURO CORPORATE
ERSTE RESPONSIBLE BOND
ERSTE RESPONSIBLE RESERVE
Disclaimer
This document is an advertisement. Please refer to the prospectus of the UCITS or to the Information for Investors pursuant to Art 21 AIFMG of the alternative investment fund and the Key Information Document before making any final investment decisions. All data is sourced from Erste Asset Management GmbH, unless indicated otherwise. Our languages of communication are German and English.
The prospectus for UCITS (including any amendments) is published in accordance with the provisions of the InvFG 2011 in the currently amended version. Information for Investors pursuant to Art 21 AIFMG is prepared for the alternative investment funds (AIF) administered by Erste Asset Management GmbH pursuant to the provisions of the AIFMG in connection with the InvFG 2011.
The fund prospectus, Information for Investors pursuant to Art 21 AIFMG, and the Key Information Document can be viewed in their latest versions at the website www.erste-am.com within the section mandatory publications or obtained in their latest versions free of charge from the domicile of the management company and the domicile of the custodian bank. The exact date of the most recent publication of the fund prospectus, the languages in which the fund prospectus or the Information for Investors pursuant to Art 21 AIFMG and the Key Information Document are available, and any additional locations where the documents can be obtained can be viewed on the website www.erste-am.com. A summary of investor rights is available in German and English on the website www.erste-am.com/investor-rights as well as at the domicile of the management company.
The management company can decide to revoke the arrangements it has made for the distribution of unit certificates abroad, taking into account the regulatory requirements.
Detailed information on the risks potentially associated with the investment can be found in the fund prospectus or Information for investors pursuant to Art 21 AIFMG of the respective fund. If the fund currency is a currency other than the investor's home currency, changes in the corresponding exchange rate may have a positive or negative impact on the value of his investment and the amount of the costs incurred in the fund - converted into his home currency.
Our analyses and conclusions are general in nature and do not take into account the individual needs of our investors in terms of earnings, taxation, and risk appetite. Past performance is not a reliable indicator of the future performance of a fund.
The issue and redemption of unit certificates and the execution of payments to unit holders has been transferred to the Fund's custodian bank/depositary, Erste Group Bank AG, Am Belvedere 1, 1100 Vienna, Austria. Redemption requests can be submitted by investors to their custodian bank, which will forward them to the Custodian Bank/Depositary of the Fund for execution via the usual banking channels. All payments to investors are also processed via the usual banking clearing channel with the investor's custodian bank. In Germany, the issue and return prices of shares are published in electronic form on the web site www.erste-am.com (and also at www.fundinfo.com). Any other information for Shareholders is published in the Bundesanzeiger, Cologne.