KfW's liquidity portfolio is part of KfW's group-wide liquidity management strategy. It is a pure bond portfolio that includes bonds issued by SSAs, financials and ABS/ABCPs that have an investment grade rating.
By signing the Principles for Responsible Investment (PRI) in 2006, KfW committed to align its behavior as a securities investor with sustainability aspects. KfW is convinced that companies that manage ESG issues in a strategic manner will have a clear competitive advantage in the future and will be able to outperform in the long term. By referring to the PRI in our sustainable investment approach, we want to actively and transparently promote sustainable business practices and encourage other market participants to do the same.
The sustainable investment approach for KfW's liquidity portfolio comprises the following components: