Our understanding of sustainability
Who benefits from sustainability?
The SDG's have given us a unique opportunity in a generation to promote economic prosperity, protect our planet and improve the lives of billions of people
The lack of appropriate responses to climate change and climate protection causes considerable economic damage, which will be reduced by the promotion of sustainable technologies
Example electric bus: Savings of 300 tons of CO2 per year 194 USD fuel costs vs. 50 USD electricity costs daily -> savings of 144 USD per day
Support in the manufacturing of products with a positive effect on the environment
Achieving good long-term returns with companies that particularly benefit from sustainable future trends and thus influencing these sustainable developments
Our company philosophy is fully focused on sustainable investment, which positions us strongly in one of the 5 major megatrends of the 21st century
4 examples of sustainable companies and their impact on the SDG's (Sustainable Development Goals)
Nel ASA, is the world market leader for electrolysis and hydrogen filling stations. The company provides solutions for the production, storage and distribution of hydrogen from renewable energies. The company’s hydrogen solutions cover the entire value chain from hydrogen production to the manufacture of hydrogen filling stations and offer electric vehicles with fuel cells the same refuelling and range as conventional vehicles.
- Use of hydrogen for transport vehicles without emissions, storage of renewable energies
- Hydrogen and fuel cell technology have the potential to become the key technology of the future.
- Hydrogen technology for diesel engines
- Reduction of emissions from existing diesel vehicles
- Germany Innovation Award
- Amortization of costs after 9 months
- Bridge technology with high global market potential
- 88 % NOx
- 54 % Fine dust pollution
- 9 % CO2
- 52 % hydrocarbon
- 9 % Fuel consumption
Jinko Solar, is a Chinese manufacturer of solar wafers, solar modules and cells and is one of the leading solar companies worldwide. JinkoSolar has branches in Asia, North America and Europe. The company has developed and put into operation the first Chinese fully automated production line for photovoltaics. As one of the largest manufacturers of solar products, JinkoSolar has established a worldwide center for research and development together with leading universities.
Covers 3 of the 17 SDG’s
Clean energy is possible through solar, which makes cities and communities more sustainable and at the same time has positive effects on climate protection
United Natural Foods is one of the leading national distributors of natural, organic and specialty foods in the USA. The wide range of products includes natural, organic, fresh and frozen foods as well as personal care products and dietary supplements. The company focuses on the distribution of high quality products, the provision of service and information, the support of organic and sustainable agriculture and environmental protection.
UNFI was named green leader in food logistics for the 6th time in a row.
Negative example of an otherwise sustainable company from which we exited for ethical reasons
Since 2015 we have held shares of BYD
BYD is a Chinese high-tech company and maintains IT, automotive and renewable energy businesses in its core business. BYD is one of the largest manufacturers of rechargeable batteries as well as housings for cell phones and has one of the world’s highest market shares of nickel batteries, Li-ion batteries and chargers for cell phones. The BYD Auto brand achieved a growth rate of over 100 percent for the fifth consecutive year. In the electric car sector, BYD develops and produces the necessary technologies. The company was quick to launch green products on the market, such as electric bicycles, energy storage solutions and solar power stations.
- World market leader for electric vehicles
- World’s largest producer of batteries
- Main supplier for Nokia, Motorola, Samsung, Sony, Kyocera and Huawei
- Warren Buffet owns 8.3% of BYD
- Use of electric motors for transportation vehicles without exhaust fumes,
- Energy storage, higher efficiency and environmental friendliness of products.
Why we still decided to exit this position in December 2020:
In November 2020 we learned about the design of the new BYD D1 and the obvious similarities to the VW ID3 via various media (see links below). This and additional information led to the decision to take the very problematic possible plagiarism violation as a reason to sell all shares of BYD in our fund in December 2020 for ethical reasons.
What sustainability standards do we use?
Taxonomy of the European Union
With the Sustainable Finance project, the European Union made major progress towards the end of 2019 towards a common classification system at European or global level that defines environmentally sustainable economic activities. Two challenges in particular are to be addressed:
- less fragmentation due to market-based initiatives and national practices
- less “greenwashing”, i.e. the practice of marketing financial products as “environmentally friendly” or “sustainable” when in reality they do not meet basic environmental standards
The taxonomy for climate protection and adaptation to climate change should be established by the end of 2020 so that it can be fully applied from the end of 2021. For the other four objectives, it should be established by the end of 2021 and applied from the end of 2022.
Four criteria for three classes of environmental sustainability
CONTRIBUTION TO ENVIRONMENTAL OBJECTIVES
They must contribute "significantly" to at least one of six environmental objectives defined in the Regulation
NO VIOLATION OF THE OBJECTIVES
They shall not "significantly" compromise any of these environmental objectives
COMPLIANCE WITH EVALUATION CRITERIA
They must meet the "technical evaluation criteria", which define, for each environmental objective, what constitutes "significant" contribution and "significant" impairment.
COMPATIBILITY WITH LABOUR LAW
They must be compatible with a "minimum protection" for workers.
SDG - Sustainable Development Goals
The SDGs are an elementary component of our investment process. When selecting investment opportunities, we make sure that none of the objectives are violated and that as many objectives as possible are met at the same time. Currently an investment covers on average 3 goals of the 17 SDGs.