Sustainable investments within Portfolio Management
Good for the world and good for you too
If you want your investments to do more than just get you returns, choose ABN AMRO. As one of the three main Dutch banks, we are in a unique position to help you contribute towards making the world a better place for people, the planet and society.
Why choose ABN AMRO’s sustainable investments?
- The right balance between people, planet and society
- Returns comparable to traditional investments
- Specialists select your funds
While investments can be profitable, they are also associated with risks. You could lose all or part of your initial investment.
Nearly 25% of our customers invests in sustainable investments within Portfolio Management
Our strategy
If you opt for sustainable investments with ABN AMRO, you will be investing in companies that are front-runners in striking and maintaining a balance between ‘people, planet & society’. We look for ‘sustainable realists with a long-term vision’. Or to put it better: companies that work on innovative sustainability challenges, use raw materials sparingly, pollute less, have better contact with people and recognise their opportunities and risks.
Sustainability guidelines
We have put together several guidelines that help us determine whether we consider an investment sustainable. These guidelines are the foundation of our sustainable investment policy.
What makes an investment sustainable?
We select the shares in your portfolio carefully and only include a company in your sustainable investment portfolio if we can give them a positive assessment on the following points.
Best ESG rating
The ESG rating (Environment, Social and Governance) represents a company’s assessed sustainability risks. This rating is based on data concerning the environment, society and good governance. In the first place, this involves an assessment of a company's material sustainability risks. These depend on, among other things, which sector a company operates in. For instance, the material sustainability risks of an oil company will differ from those of a clothing manufacturer. The second step is to examine how a company manages these risks. Better governance can lower the risk. This data is provided by Sustainalytics, a sustainability research company. The best rated companies may be viewed as sustainable investments. This concerns:
- Environmental
- What efforts does a company make to reduce carbon emissions, water usage and the amount of waste generated? Or does the company recycle a lot? And does the company report on its own environmental impact?
- Social
- Does a company ensure working conditions are safe and pay its employees a fair wage? Does the company have a discrimination policy? And does the same apply to suppliers?
- Governance
- Is the company susceptible to corruption? Who is on the Supervisory Board? Does the company lobby the government? And how transparent is the company on its policy and activities?
Product exclusions
As standard, we exclude companies that manufacture certain products, such as weapons. When it comes to other products, such as fur, tobacco and gambling-related products, we exclude those companies that generate more than 5% of their revenues through these products.
Process exclusions
Last but not least, we exclude companies that are involved in controversial practices and do not have a policy on these practices. For instance, controversial energy extraction, such as shale gas drilling, otherwise known as fracking. Companies that generate more than 5% of their revenues through these practices are also excluded.
Bonds and investment funds
We score bonds in the same way or select ‘green bonds’. When it comes to investment funds, we first score the companies that the funds invest in and then take the average of these company scores as the score for the investment fund in question.
Small sustainable companies
When it comes to alternative investments, we look to maximise the sustainable impact through microfinancing, fair-trade financing and renewable energy projects. We also actively look for companies whose product helps to make the portfolio more sustainable.
ESG Fund Mandate
- Strike the right investment balance between people, planet and society
- Invest in industry front-runners
- Get returns comparable to traditional investments
Our advisers are here for you
If you have any questions or simply want to know how your investments are doing, don’t hesitate to call one of our Investment Advisers — they will be happy to answer your questions. Stay up to speed and in control at all times, and leave the rest to us.