Sustainable and responsible investment management
Since the official signature of the United Nations-supported Principles for Responsible Investment in January 2020, EUROFIMA has made significant efforts to foster its presence as a sustainable and responsible asset owner. EUROFIMA’s strict integration of Environmental, Social and Governance (ESG) considerations into its investment decision process is based on two major pillars. Firstly, all investments must fulfil the principles of the United Nations Global Compact (UNGC). The UNGC is applied in for norm-based screening. All counter-parties that do not comply with this approach cannot be bought or held. Therefore, this is a negative screening and exclusion approach, which is applied in full to all assets. Secondly, ESG risks for all investments are assessed based on external data provided by Sustainalytics. For individual investments, the score must be lower than 40 (indicative threshold for “severe” ESG risk rating), while at the portfolio level the score must be lower than 20 (this is equivalent to a portfolio rating of "low"). EUROFIMA confirms that all holdings comply with the UNGC and that no position is rated severe in ESG risk terms. Moreover, the weighted-average ESG risk rating of all investments is confirmed as low. To ensure compliance with our ESG integration targets, we monitor the ESG performance of each of our portfolios on a daily basis.
The initiative of integrating ESG considerations is an important part of EUROFIMA’s commitment to sustainability. Sustainability is at the core of EUROFIMA as an organization through its non-profit mission to support the development of public passenger rail transportation in Europe, its funding model as a frequent Green bond issuer in the capital markets and ultimately as a sustainable and responsible asset owner.