Infrastructure Investments
In addition to reducing the C02 intensity of the investment portfolio, we are also increasingly investing in capital investments that counteract climate change. These include, in particular, investments in sustainable infrastructure projects. In recent years, we have consistently built up expertise and participate directly in selected projects with a specialized unit through equity and debt financing. The infrastructure portfolio includes investments in wind farms, solar parks. We are now one of the largest investors in wind farms in Germany and operate 21 wind farms - including three at sea . The framework for sustainable investments developed in 2021 includes
- Green/ Social/Sustainable Bonds, certified according to the internationally recognized ICMA standard
- Sustainable real estate with a gold seal from LEED or the German Sustainable Building Council (DGNB)
- Real estate funds with a GRESB rating of at least four stars.
- Infrastructure projects in the field of renewable energies or climate-friendly public transportation as well as social infrastructure projects.
- Dedicated classified renewable energy funds.
- Impact investments that have a direct measurable positive impact on the environment.
ESG screening
We have developed and implemented a Group-wide procedure for ESG screening. The ESG screening is carried out every six months, whereby the Talanx Group's self-managed investments are communicated to a service provider and, if information is available, evaluated.
In particular, compliance with the UN Global Compact was defined as a filter criterion. In addition to the environmental and climate criteria anchored there, we have consistently expanded the filter catalog to exclude power plants and thermal coal. Accordingly, we no longer invest in companies whose sales and generation share are based on thermal coal to the tune of more than 25%. We have set ourselves the target that the Talanx Group will have completely phased out thermal coal by 2038. On the investment side, the terms of existing investments will also be limited to this phase-out year. The exclusion of oil and tar sands that are harmful to the climate and the environment has also been included in the filter catalog. Before new securities are purchased, limit controlling is used to check whether the issuer of the security violates the ESG exclusion criteria. In addition, external assessments are also relevant as feedback when evaluating individual financial products. The information available from Sustainalytics is decisive for the implementation of the exclusion criteria mentioned here. We also carry out our own ESG assessments for individual issuers on an ad hoc basis.
Sustainability in capital investment
ESG aspects are of key importance to us when making investment decisions. The aim of the sustainability strategy in the investment area is to generate long-term capital growth on the basis of a broadly diversified and actively managed securities portfolio, paying particular attention to ESG criteria. In doing so, we want to avoid potential negative effects by avoiding investments in unsustainable issuers and we want to promote positive effects on society and the environment.
We are convinced that sustainable development can only be achieved through the simultaneous implementation of environmental, economic and social goals.
Climate protection
In parallel to the traditional screening and exclusion approach, we strive to continuously develop our sustainability approach. Accordingly, 2021 was characterized by the development of a medium and long-term climate strategy, in particular for dealing with the C02 footprint of the investment portfolio. To this end, the C02 footprint of the investment portfolio was determined for the first time in 2020. The focus here was on the C02 intensity of the self-managed liquid investments in the areas of equities and fixed income (corporate bonds and covered bonds). The short and medium-term goal of the is to reduce the C02 intensity of the liquid portfolio by 30% by 2025 compared to the beginning of 2020. This corresponds to an annual reduction in C02 intensity of around 7% and is an important contribution to the development of a long-term path towards the net-zero emissions target by 2050.
Fund
In its business with institutional clients, Ampega offers individual ESG solutions based on a differentiated approach. To this end, ESG integration in the various asset classes was further advanced and cooperation with various sustainability data vendors was further intensified. Customers can now be offered more different exclusions, best-in-class approaches or impact strategies. Ampega has been offering dedicated ESG focus products with different risk profiles for mutual funds for many years: The special funds in the terrAssisi fund family invest in companies and issuers that permanently incorporate environmental and social criteria as well as economic criteria into their corporate strategy and are among the pioneers in terms of future responsibility. The classification is specified by the independent research agency ISS-ESG. terrAssisi Aktien I AMI also has a transparency report from Rödl & Partner. These reports provide interested investors with a high degree of insight into the fund's investment management and set new standards in transparency and information policy.
Exercise of voting rights
Ampega generally applies the existing regulations and guidelines on voting rights to all portfolio companies. In accordance with the situation under stock corporation law, insignificant investments may be excluded from this. Ampega follows this option and for this purpose prioritizes the investments according to the possible influence in each case, so that voting rights can be exercised as effectively and resource-efficiently as possible.
In this context, voting rights are exercised for the largest holdings in German portfolio companies that are held in custody by our central custodian banks.
The corresponding voting right is also exercised for mid and large caps in particular if the holding in the portfolio company across all funds and portfolios exceeds a threshold of 1% of the shares in circulation, which is subject to regular review. For portfolio companies domiciled outside the EEA, voting rights are only exercised in cases where this is justified in view of the high level of effort involved.