Arabesque Asset Management


Sustainability Considerations in Our Capital Allocation

We believe economic value creation can and should be combined with environmental stewardship, social inclusion and sound governance (ESG). ESG and sustainability are more than just extra financial considerations for investors - they form the very foundations of successful markets.

We aspire to be a catalyst for change in finance by integrating sustainability into our investment products, and empowering people through transparency. For us, a sustainable company is one that positions itself for long-term success— addressing short term risks and long-term opportunities while accounting for all stakeholders’ interests. By incorporating ESG and sustainability analysis in our capital allocation process, we aim to invest in companies positioned for long-term financial success and gain better risk-adjusted returns in our portfolios.

Our strategies are built from a transparent, quantitative investment process, complemented by our proprietary tool Arabesque S-Ray® to assess companies’ sustainability performance. The S-Ray® research framework allows us to look at a company under different lenses:

  • How a company behaves: we leverage the UNGC’s guiding principles on human rights, labour rights, environment and anti-corruption to develop a UNGC score.
  • How a company is managed: we calculate a proprietary ESG score which quantifies corporate strategy and management quality and is built upon Arabesque’s proprietary materiality matrices.
  • How a company generates revenue: we provide the transparency on the different activities from which a company generates revenue from (e.g. coal, fossil fuels, tobcco etc.).
  • How a company contributes to global Temperature rise: we calculate a Temperature score for each company to assess whether a company’s behaviour contributes positively or negatively towards the 2◦ target.

For more detailed information on how sustainability is integrated in each of our investment products, visit the product’s investment process page. For more information about the S-Ray® product visit the S-Ray® website

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