The dialogue with issuers is a central element of our sustainable investment approach for the liquidity portfolio. Since we invest exclusively in bonds, we have no way of persuading issuers to be more sustainable by actively exercising voting rights. We therefore rely on direct dialogue with the companies.
Our sustainable investment approach is based on a best-in-class approach. All issuers are assigned to the sectors present in the liquidity portfolio (financial institutions, sovereigns and automobiles in the case of ABS) and evaluated in comparison to other companies in their sector with regard to ESG criteria. This is done on the basis of ratings obtained from a sustainability rating agency. In accordance with the best-in-class approach, bonds are only purchased from issuers that belong to the top 50% of their sector. Through an open dialogue with the issuers, we ensure transparency about our approach and the respective current sustainability scores.
In addition to direct dialogue with issuers, we actively promote the implementation of the Principles for Responsible Investment (PRI) and sustainable development in the capital market.