We take responsibility, especially in our core business activities. With investments amounting to several billion euros, we have a significant influence on the capital markets. In line with our investment principles, we use this leverage to help direct capital towards forward-looking and responsible investments.
By signing the Principles for Responsible Investment (PRI), the Group commits to the six principles of responsible investing, publicly supports their implementation and application, and reinforces its consideration of ESG factors and defined exclusion criteria in its investment activities.
In our investment portfolio, we pursue the reduction of financed emissions, primarily in the areas of equities and corporate bonds. The Relative Carbon Footprint (RCF) measures Scope 1 and Scope 2 emissions per million euros of the companies in which we invest. Since its introduction in 2022, the RCF has been reduced by more than 50%.
The W&W Group refinances energy-efficient properties through green covered bonds. To support this, it has established a Green Bond Framework that clearly defines the eligible use of proceeds. The funds are used to finance buildings with an energy efficiency rating of A+, A or B, or a primary energy demand of 74 kWh/m² per year or less.
As an investor, the W&W Group takes sustainability considerations into account in its investment decisions. Our Responsible Investment Policy provides a comprehensive framework for responsible investing and is intended to help ensure that ESG considerations are reflected in the analysis and decision-making processes of our investment activities.
In our investment strategy, we consider not only economic factors but also environmental, social and governance-related aspects. The principles governing the consideration of ESG factors are set out in our Responsible Investment Policy.
Among other things, the policy defines exclusion criteria for companies and sovereign issuers that are not aligned with our investment principles. These criteria cover investments in authoritarian states, certain coal- and weapons-related business activities, as well as companies involved in severe labour rights controversies, such as child labour or forced labour. The currently applicable exclusion criteria are published on the website of W&W Asset Management GmbH under Sustainability. Agricultural commodities are also excluded from our Strategic Asset Allocation.
In addition, investments in energy-efficient real estate, renewable energy and green bonds have been an integral part of the W&W Group’s strategic investment process and investment universe for many years.
