1. Summary of the Sustainable Investment Handbook
•• An ESG integration process takes into account the long-term growth prospects, not only making a portfolio attractive from a sustainability perspective but also improving the risk–return profile. Chapter 9.1. Enhancing the Investment Process through ESG Integration •• An example illustrates how an ESG assessment is integrated as a key component of the investment process. •• The ESG assessment carried out by financial analysts helps them better understand the value drivers and risks of a company and creates added value for investors. Chapter 9.2. Optimised Geographical Asset Allocation Thanks to ESG Integration •• Political, macroeconomic, and resource-oriented criteria are relevant for an optimised geographical asset allocation. •• Long-term ESG trends, which can be measured quantitatively, give an early indication of structural changes that are not analysed by mainstream investors and rating agencies. Chapter 9.3. The Role of ESG Integration in Emerging Market Investments •• The limited availability of ESG information is one of the main challenges for an ESG integration approach in the context of emerging markets. •• Dialogue at the board level can provide access to senior management, thereby making it easier to access information. •• The ESG integration approach adds value to the investment process. Case Study: Zurich Insurance Group •• An insurance company integrates sustainability criteria throughout its investment processes. Chapter 10. Exercising Voting Rights •• Exercising voting rights is an important means for shareholders to express their views on what constitutes good business management.
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