SUSTAINABLE
INVESTMENT

All four funds, Raiffeisen-Nachhaltigkeit-Solide, Raiffeisen-Nachhaltigkeit-Mix and Raiffeisen-Nachhaltigkeit-Aktien as well as Raiffeisen fond udržitelného rozvoje, are now offered free of entry and exit fees. In addition to attractive returns attainable through the investment you have the chance to support companies that care about the impact of their business from the environmental, social and economic perspective.

In addition to an opportunity for attractive returns on investments in Raiffeisen sustainability funds there are major positive impacts attainable for the investor through the investments:

• 43% less CO2 emissions,
• 14% less work-related accidents,
• 91% less waste,
• 78% less water consumed.

Valid for the following funds or fund segments: Raiffeisen-Sustainable-Equities, Raiffeisen-Sustainable-Mix Seg. Equities, Raiffeisen-Sustainable- Solid Seg. Equities; Source: Raiffeisen KAG, own calculations, data as of 30 June 2019; Calculation methodology: In order to calculate the effect of sustainable equity investments in the fund, we used the sustainability ratios of the companies found in their sustainability reporting. CO2 emissions are generally denoted in tons of carbon dioxide equivalents (CO2e), work accidents in lost-time-injury-rate, waste in tons and water consumption in m3. The key ratios for the individual companies were multiplied by their weight in the fund or in the overall market, and the results of each key ratio were compared. Currently, we do not calculate such ratios for the bond segment of the funds, as we think that the “sustainable footprint” is attributable to the company owners, i.e. shareholders, not to the creditors, i.e. bond holders.

ESG is synonymous to sustainable development. The acronym is derived from the terms “environment (E)”, “social (S)” and “corporate governance (G)” and represents the relevant criteria.

First, prospective firms are screened against negative criteria. This is aimed at preventing investments in firms meeting such negative criteria. These criteria include child labour, massive violations of human rights or production of or trade in arms.
The passing titles are then subject to a detailed analysis. Every title is assigned an ESG score, serving as a form of a sustainability indicator. The ESG score must reach a certain minimum threshold, otherwise the title is excluded from the selection.

Investments that are sustainable in the long run have a positive impact. Firms held in Raiffeisen sustainable development funds show better social indicators (such as less work-related accidents) and better environmental indicators (such as reduced carbon dioxide emissions).