Sustainability

PERFORMANCE DRIVEN BY SUSTAINAMEMTALS®

Our identity

CHOM CAPITAL is driven by an ambition to deliver sustained added value for its investors.

Sustainability is a key element of our identity and the decisions we make, both as entrepreneurs and as asset managers. As part of our value-oriented and fundamentally driven investment strategy, non-financial ESG standards – such as Environmental, Social and Governance criteria – have been integrated at all stages of the process.

We call this approach
PERFORMANCE DRIVEN BY SUSTAINAMENTALS®

Our funds CHOM CAPITAL Active Return Europe UI and CHOM CAPITAL PURE Sustainability – Small Cap Europe UI are shown as Sustainable ESG Strategy “Green Investment” (target market definition: “G”) at all data providers.

FNG_Nachhaltigkeitssiegel_EN_2021_zweiSterne
Award for CHOM CAPITAL Active Return Europe UI
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Award for CHOM CAPITAL Active Return Europe UI and CHOM CAPITAL PURE Sustainability – Small Cap Europe UI
5Diamonds
Award for CHOM CAPITAL Active Return Europe UI - as of June 2020
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Percent
ESG Engagement

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Sustainability
Checks p.a.

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SUSTAINAMENTAL

We embrace sustainability

As an entrepreneur, we are committed to the principles of good corporate governance, a socially responsible human resources policy and an economically conscious use of our natural resources. In the spirit of sustainable finance, we want to make a positive contribution to climate change with our products and promote the allocation of financial flows to sustainable companies.

As asset managers, we consistently place client benefits and the success of our investments at the centre of our activities. We actively and responsibly exercise shareholders’ rights and are committed to the following overarching principles within our sphere of influence:

  • UN Human Rights Principles and 17 sustainability goals

  • Zero tolerance in the event of serious violations of the ILO Core Labour Standards, the UN Global Compact Principles and the OECD Guidelines for Multinational Enterprises

  • Acceptance and implementation of the UN Principles for Responsible Investment (PRI) and the Code of Conduct of the German Investment Funds Association (BVI)

We invest with a long-term orientation and regard sustainable investments as an investment in the future.

„In order to achieve sustainable added value, we at CHOM CAPITAL have deliberately combined ESG responsibility and investment decisions in our personnel. “

– Martina Neske, Founder

„ESG is an integral part of our investment process, allowing us to include all relevant aspects in our decisions.“

– Benedikt Kirsch, Head of ESG

Our responsibility in the investment process

ESG is an integral part of our investment process at all levels (universe, stock selection, portfolio construction and investment monitoring). CHOM CAPITAL stands for the tight integration of fundamental and ESG analysis of a company.

Based on a European investment universe of approximately 6,000 listed companies, we narrow it down by taking into account liquidity requirements and a standards-based ESG screening with strict exclusion criteria. Further limitations are set by minimum requirements for individual securities and portfolio ratings and a positive result from the contribution analysis to the 17 sustainability goals of the United Nations.

Despite the strict guidelines, a broad, investable investment universe of around 2,000 companies remains.
For ESG analysis, we rely on data from MSCI ESG Research. We have developed proprietary models that allow us to monitor the sustainability of our investments in detail and simulate the impact of a stock’s inclusion on various key figures.

We believe that a holistic analysis of financial and non-financial criteria helps us to clearly identify the future potential of a company and the key value drivers responsible for it. This is why investment decisions and ESG responsibility are combined in our team.

We validate our analysis results in over 600 management meetings p.a. This allows us to make a credible commitment to improving the sustainability of our investments.

We call this approach
PERFORMANCE DRIVEN BY SUSTAINAMENTALS®

Yves Müller

Chief Financial Officer
“We are deeply impressed by CHOM CAPITAL’s SUSTAINAMENTALS® approach, which takes a holistic view of a business model’s future value potential and strategic positioning. This reflects our own conviction that tomorrow’s winners combine sustainability with fundamental goals.“

Cristina Rios de Amorim

Chief Financial Officer
“Our regular dialogue with the CHOM CAPITAL team has provided us with an excellent opportunity to understand how we are perceived by our stakeholders and what their concerns and expectations are. The CHOM CAPITAL team has frequently visited our headquarters and production sites in Portugal. They know Corticeira Amorim and its management team very well and truly understand the special features of this family-owned business, the heart of whose identity is sustainability. Given CHOM CAPITAL’s long-term, sustainable investment approach, our challenging discussions and its deep analysis, especially on sustainability issues, have been very helpful in identifying potential areas for improvement and for increasing disclosure and engagement.”

Stefan Yee

Chairman
“The CHOM CAPITAL team has built up in-depth sustainability know-how. The joint talks and discussions have shown us important and meaningful aspects. For UPG, sustainability is a central part of our strategy towards all stakeholders – our customers, our employees, our planet and our investors.”
 
 

Our sustainable quality standards for transparency and trust

 

As an owner-managed company, good corporate governance, an economically conscious use of resources and responsible investing are part of our self-image. Responsible investing makes an important contribution to the sustainable orientation of investments.


UN Principles for Responsible Investment

As a signatory, CHOM CAPITAL is committed to the “Principles for Responsible Investment” of the United Nations (UN PRI = “UN Principles for Responsible Investment”). We are thus committed to implementing the guidelines formulated by the United Nations in portfolio management. As trustees, we align investment strategies and investment processes with the sustainability goals of the United Nations in the interests of our clients and will systematically review and further develop this strategy on a regular basis.

The UN PRI is an investor initiative in partnership with the Finance Initiative of the UN Environmental Program UNEP and the UN Global Compact. They comprise the following six principles, which also serve as guidelines for us:

Principle 1: We will incorporate ESG issues into investment analysis and decision-making processes.

Principle 2: We will be active shareholders and integrate ESG issues into our investment policy and practice.

Principle 3: We will encourage companies in which we invest to make appropriate disclosure on ESG issues.

Principle 4: We will promote the acceptance and implementation of the Principles in the investment industry.

Principle 5: We will work together to increase our effectiveness in implementing the Principles.

Principle 6: We will report on our activities and our progress in implementing the Principles

Further information about the Principles for Responsible Investment (PRI) initiative can be found at www.unpri.org

Eurosif – European Sustainable and Responsible Investment Forum

EUROSIF is a European sustainable investment forum that operates as a partnership of national Sustainable Investment Forums (SIFs) within the EU with the support and participation of its members. Only those companies that meet EUROSIF’s strict requirements and are listed as “Transparent Companies” in the transparency register can additionally qualify for the European Transparency Logo.

The transparency logo and the European SRI Transparency Code

The European transparency logo for sustainability funds indicates that CHOM CAPITAL is committed to providing correct, appropriate and timely information to enable interested parties, especially customers, to understand the approaches and methods of sustainable investment of the respective fund. 

Detailed information on the European Transparency Code can be found at www.eurosif.org. Information on the sustainable investment policy and its implementation of the CHOM CAPITAL Active Return Europe UI can be found at https://fondsfinder.universal-investment.com. The Transparency Code is managed by Eurosif, an independent organisation.


FNG Forum on Sustainable Investments

The Association for Sustainable Investments in Germany, Austria, Liechtenstein and Switzerland has set itself the task of creating an improved legal and political framework for sustainable investments. CHOM CAPITAL has been a member of the Sustainable Investment Forum since 2020.
Further information on the FNG can be found at www.forum-ng.org


CSSP – Center for Social and Sustainable Products

CSSP is a Swiss, independent consulting and research company that offers standardised & customised ESG & Carbon Investment Reporting and Controlling solutions in cooperation with the online platform YourSRI.com.
yourSRI combines traditional financial data (Thomson Reuters/Lipper), ESG data (MSCI ESG Research) and carbon data (ISS-Ethix) to automatically calculate the ESG score of a fund and its carbon footprint. In this way, yourSRI creates transparency for investment decisions, making it easier to integrate ESG and CO₂ considerations.

CHOM CAPITAL has been working with CSSP on sustainability reporting and controlling since 2017. The CHOM CAPITAL Active Return UI fund received the highest rating of five diamonds.
Further information about CSSP can be found at www.cssp-ag.com.


MSCI ESG Research

MSCI is the world’s largest provider of ESG research. MSCI ESG Ratings cover all areas of sustainability. As part of the in-depth rating process, we analyse how each company succeeds in exploiting opportunities in the environmental and social areas as a competitive advantage and whether good corporate governance is in place. The sustainability rating agency MSCI ESG Research analyses the major and (industry) specific risks to which companies are exposed and what is done to manage these risks. The higher the risks identified, the more advanced the risk management strategies presented must be in order to achieve a good rating. Companies are rated on a scale from “AAA” (very good) to “CCC” (poor). Fund ratings result from the aggregation of the individual securities held and rated.
Further information about MSCI can be found at www.msci.com

Would you like to learn more about our sustainable investment approach?

We are looking forward to talking to you.

Marcus Rohrbach, Sales
rohrbach(at)chomcapital.com
+49 69 260 1599-80