Investing responsibly

When making investment decisions, the VHV Group paysclose attention to integrated sustainability aspects – among them ethical, ecologicaland social concerns. However, the main focus is clearly on economicsustainability.

Excluded investment areas

All investments of the VHV Group are criticallyexamined and must satisfy ESG criteria. Issuers are evaluated in terms of climateprotection goals, social standards, human rights, and corporate governance.Investments in controversial weapons and companies who exceed certain turnover limitsof coal-fired power generation or fracking/tar sands are categorically excluded.

Controversial weapons

Coal-fired power generation

turnover > 30%

Fracking and tar sands

turnover > 5%

Preferred investment areas

Ideal types of investments that satisfy our strict ESGinvestment criteria are in one of the six areas listed below. With this investmentstrategy, we intend to make our portfolio climate neutral by 2050 and, thus,make a crucial contribution to decarbonisation.

Wind energy

Solar energy

Public transport

Grid infrastructure(power)

Green/social/sustainable bonds

Certified real estate

Engagement

We engage in dialogue with security issuers and/or data providers on an ad hoc basis. In doing so, we aim to increase sustainability transparency and encourage issuers to comply with environmental, social and governance standards and to improve their ESG quality.

In addition, we are involved in leading organisations and sustainability initiatives to promote better industry-wide ESG practices. As a signatory of the United Nations-initiated Principles for Responsible Investment (PRI), we are part of a global network of insurance companies, banks and other institutions committed to sustainable investing. An overview of all the initiatives we support can be found here.

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ESG criteria in the investment process

Exclusionary criteria

We place great value on responsible behaviour and refuse to work with companies that violate our ethical and environmental standards.

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Exclusionary criteria

Companies

Controversial weapons (e. g. land mines and scatter bombs)
Severe violations of the UN Global Compact
Fracking and tar sands (5 percent turnover tolerance)
Coal-fired power generation (30 percent turnover tolerance)

States

Positive list of countries

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Positive criteria

Sustainability is our top priority. We assess companies comprehensively in the areas of environment (E), social responsibility (S) and corporate governance (G).

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Positive criteria

Detailed evaluation of the sustainability of an issuer in the dimensions E (Environmental), S (Social) and G (Governance)
Minimum thresholds for ESG scores
Consideration of the climate component through positive limitation using the “Low Carbon Transition Score” (which measures the transition risks of companies on their path to low carbon business practices)

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