Sustainability / Sustainability Risks
In English
Sustainability risk means an environmental, social or governance (“ESG”) event or condition that, if it occurs, could cause a negative material impact on the value of the investment.
WIP has integrated sustainability risks by establishing internal policies to ensure that the services provided by the company provide and the funds managed by WIP take sufficient account of sustainability risks.
We see responsibly operating companies as being more profitable in the long term and having a better risk profile than companies that do not act responsibly. The principles of responsible investment are considered both in our discretionary asset management portfolios and in our investment funds.
WIP integrates sustainability by:
The capital managed by WIP is vulnerable to sustainability risks and the value of investments may decrease due to sustainability risks. For example, the challenges posed by climate change and the failure to mitigate it may affect the value of investments. For this reason, we have identified the principal adverse impacts and sustainability risks of our investment decisions and consider them when making investment decisions in addition to financial aspects.
Our portfolio managers consider sustainability risks in investment decision-making across all portfolios and funds managed by WIP. There may be differences in the consideration of sustainability risks between different portfolios and funds, as the materiality of sustainability risks varies depending on the asset class, investment strategy, client objectives and market trends.
The portfolio managers have internal and third-party ESG analyses and ratings in place to assess sustainability risks.
High-quality and responsible asset management is an important part of WIP. High-quality and responsible asset management includes information provided to clients about potential risks to investments, including sustainability risks. WIP’s remuneration policies promote high-quality and responsible asset management.
The variable remuneration to which certain employees are entitled in asset management is linked to the (positive and negative) impact of environmental, social and governance events on the value of investments. The remuneration is tied to specific return targets that tie the investments in asset management to the asset manager’s fee. This supports the integration of sustainability risks into investment decisions.