ESG and Portfolio Strategy

The portfolio strategy permits the integration and combination of various ESG attributes on various levels:

Sellers // Buyers // Tenants/Stakeholders/ Supply Chain Management:

  • Compliance with the Global Compact Criteria
    • Protecting internationally proclaimed human rights
    • Avoiding complicity in human rights abuses
    • Recognising the freedom of association and the right to collective bargaining
    • Advocating the elimination of forced labour
    • Advocating the abolition of child labour
    • Advocating the elimination of discrimination in regard to employment and occupation
    • Taking a precautionary approach to environmental challenges
    • Promoting deepening environmental awareness
    • Developing and disseminating environmentally friendly technologies
    • Fighting corruption in any form
    • Other essential components of our processes include cybersecurity, data protection and the “Know Your Customer” principle.
  • Reputational risk

 

Buildings

  • Resource efficiency
  • Social performance
  • User comfort & security
  • Economic performance
  • Governance

 

 

Possibilities for sustainable product design

 

ESG Module Characteristics Reporting Features
Non ESG
  • No consideration of sustainability risks and negative effects
  • Not or only partially part of the ESG overall portfolio strategy
  • No ESG Elements
  • Statement that no ESG risks / criteria are taken into account = the investor must explain this explicitly
Basis
  • Sustainability within the scope of the KVG ESG overall portfolio strategy
  • Basic key figures (Consumption / CO emissions)
  • Statement that ESG risks / criteria are being considered in investment decisions
  • ESG as part of active management
ESG Strategy
  • Pursuit of selected ESG goals based on specific ESG characteristics
  • Basic key figures
  • + ESG characteristics
  • No sustainable investment objective
  • Binding ESG characteristics / exclusion criteria and minimum criteria in the investment strategy
  • Development of a fund strategy with ESG characteristics
Impact
  • Achieving a measurable and demonstrably positive contribution to environmental and social
  • Basic key figures
  • + Impact characteristics(e.g. Net-Zero strategy)
  • Sustainable investment objectives
  • Development of a fund strategy with ESG objectives

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