While SRI has a long-term history in Western Europe, this trend is still underdeveloped in Central and Eastern European (CEE) countries. For many CEE retail clients, it is still unavailable or unknown. As a leading pension company in CEE, we enable our clients to choose fully SRI-orientated solutions for their savings for retirement. In October 2017, ČS Pension Company launched a new Responsible Pension Fund strictly orientated to SRI.
The traditional asset management approach considers risk, yield, and liquidity. We add yet another dimension – ESG (Environment, Social, and Governance). Each investment idea is now compared with exclusion criteria – such as coal mining, nuclear power, tobacco, GMOs or animal testing. Issuers operating in any of these areas are no longer viable options. The second layer of the filter is a best-in-class approach of ESG rating. We rate companies in accordance with their fulfilment of ESG criteria and we choose only the best for the Responsible Pension Fund’s portfolio. The ESG filter excludes about two-thirds of issuers from our investing universe.
As a dominant stakeholder in the Czech capital market, we plan on engaging in dialogues with issuers in the coming years, to motivate them to enhance sustainability and encourage such behaviour.
We have also recently launched a cooperation with Mr Adam Podhola, co-founder of the “Save Food” movement – raising awareness of food waste problem. Feel free to watch story!