Case Study: Eltaver AG

A family office aligns investments with family values.

Information on the organisation

Type of organisation Family Office Assets under management No details (as of 31.12.2016) Approximate asset No details allocation (as of 31.12.2016)

Information on sustainable investment policy

Who initiated the drafting The female family members in particular showed increased of a sustainable investment interest in responsible investing. Simultaneously, within the policy? Asset Manager team there was also growing interest in sustainable investments and the family welcomed appropriate proposals. What was the main The main motivation was the family members’ wish to align motivation for this step? investments with their personal values. In addition, the integration of sustainability criteria fits nicely with the “Value Investing” approach already adopted: the family has a long-term investment horizon. From the asset management perspective, the sustainable investment approach also serves to identify risks at an early stage and supplies ideas for new investment opportunities (attractive sectors, business models, or innovative companies). What are the main The Family Office invests in various asset classes, but the components/content of sustainability integration has so far focused mainly on the equity the sustainable investment portfolio. The investment policy is based on a combination of policy? ethical exclusion criteria (gambling, tobacco, weapons, nuclear energy) and a best-in-class approach. The portfolio’s carbon intensity is also reviewed periodically. How was the sustainImplementation took place in stages. The family has always able investment policy applied ethical exclusion criteria. Eltaver has been investing in implemented? micro-finance since 2008, and the carbon footprint of the share portfolio was measured for the first time in 2011. The various activities highlighted the need to go further and take a more systematic approach towards the integration of sustainability criteria. This led to the additional adoption of the best-in-class approach: Financial instruments are only eligible for investment if they are rated as sustainable. Sustainability criteria are also considered in the quantitative analysis and therefore influence every investment decision. What resources have been Eltaver relies on partner banks for defining the sustainable deployed for this? investment universe. The analysis of the portfolio’s carbon footprint is based on yourSRI. Sustainability aspects are assessed internally as part of the quantitative analysis. Here, the emphasis is less on the scrutiny of specific indicators and more on a general assessment of risks based on common sense.

What were your experiences with the policy implementation?

What were notable difficulties?

What do you consider to be the main benefits of your sustainable investment policy? Implementation has turned out to be relatively straightforward. Some of the family members and asset managers were convinced by the added value created by sustainability integration, while others were persuaded by the wider benefits. The family gave the asset managers free rein in implementing their ideas under the condition that financial performance was not compromised. There were no major difficulties. However, the limited (personnel) resources imply it is not always easy to stay informed on the rapid developments in sustainability themes. So far, however, this has not held back the steady expansion of sustainability integration. The sustainable investment policy helps to minimise risks as the sustainability rating of a company can be seen as an indicator for good corporate governance. The integration of ESG criteria builds confidence in investment decisions, allowing short-term volatility to be more easily dealt with. It also provides a different perspective and generates new investment ideas. Last but not least, an investment with a positive impact always elicits positive emotions.