Sustainable investing has evolved from an ethical niche phenomenon to a widely applied investment philosophy. Globally, interest in sustainable investing is growing, especially from large pension funds. At Vescore, we are responding to this interest by integrating environmental, social and governance (ESG) criteria into our systematic and hybrid strategies (man and machine) across different asset classes.
We believe ESG data provides greater transparency and the ability to evaluate companies more objectively. However, much of this data requires additional processing. A sophisticated systematic approach to it is not only beneficial, but also necessary. Its key features - advanced forecasting methods, incorporation of alternative data, and use of machine learning - fit the challenges of sustainable investing.
Vescore has developed a proprietary ESG process. It excludes companies based on normative as well as negative criteria and includes the active exercise of voting rights. ESG integration, the heart of the process, is where our proprietary Vescore ESG rating comes into play. It enables us to determine the financial relevance of ESG factors with the aim of making forward-looking investment decisions.
To ensure that our clients can invest in perfect alignment with their values and beliefs, we offer flexible and tailored investment solutions. For impact investors, we can add individually defined sustainability criteria to our standard ESG process on request.
Environmental, social and governance (“ESG”) investing and criteria employed may be subjective in nature. The considerations assessed as part of ESG processes may vary across types of investments and issuers and not every factor may be identified or considered for all investments. Information used to evaluate ESG components may vary across providers and issuers as ESG is not a uniformly defined characteristic. ESG investing may forego market opportunities available to strategies which do not utilize such criteria. There is no guarantee the criteria and techniques employed will be successful. Unless otherwise stated within the strategy's investment objective, information herein does not imply that the Vontobel strategy has an ESG-aligned investment objective, but rather describes how ESG criteria and factors are considered as part of the overall investment process.