This strategy holds securities with low exposure to ESG risk relative to those of its peers in the Morningstar Global Equity Mid/Small Cap category, earning it the highest Morningstar Sustainability Rating of 5 globes. ESG risk provides investors with a signal that reflects to what degree their investments are exposed to risks related to material ESG issues, including climate change, biodiversity, product safety, community relations, data privacy and security, bribery and corruption, and corporate governance, that are not sufficiently managed. ESG risk differs from impact, which is about seeking positive environmental and social outcomes.
ASN Milieu & Waterfonds has a sustainable investment objective within the meaning of Article 9 of SFDR. Funds classified by their managers as Article 8 or Article 9 would have a higher probability to drive positive ESG outcomes. One key area of strength for ASN Milieu & Waterfonds is its low Morningstar Portfolio Carbon Risk Score of 7.21 and very low fossil fuel exposure over the past 12 months, which earns it the Morningstar Low Carbon Designation. Thus, the companies held in the portfolio are in general alignment with the transition to a low-carbon economy.
Asn Milieu & Waterfonds shows 33.4% involvement in carbon solutions. This percentage is high in absolute terms and surpasses the 28.8% average involvement of its peers in the Sector Equity Ecology category. Carbon solutions include products and services related to renewable energy, energy efficiency, green buildings, green transportation, and so on. By prospectus, the fund aims to avoid, or limit its exposure to, companies associated with controversial weapons, tobacco, and and thermal coal. The fund fulfills this goal by having negligible investment exposure to each of these activities. The fund aims to avoid, or limit exposure to, companies in violation with international norms, such as the UN Global Compact or the Universal Declaration of Human Rights. The fund has no exposure to high or severe controversies. Controversies are incidents that have a negative impact on stakeholders or the environment, which create some degree of financial risk for the company. Examples of types of controversies include bribery and corruption scandals, workplace discrimination and environmental incidents. Severe and high controversies can have significant financial repercussions, ranging from legal penalties to consumer boycotts. Such controversies can also damage the reputation of both companies themselves and their shareholders.
United States