Welcome
2020 Sustainability Conference
The dominant theme of the 2020 Sustainability Conference was the coronavirus pandemic. Usually attended in person by several hundred delegates, the conference was held online this year.
The presentations by Union Investment’s ESG specialists looked at how coronavirus has changed the world, what will remain the same and, in particular, how an active asset manager should respond to these changes.
Download of the presentations
The presentations by Union Investment’s ESG specialists looked at how coronavirus has changed the world, what will remain the same and, in particular, how an active asset manager should respond to these changes.
Download of the presentations
Alexander SchindlerSeparating the wheat from the chaff
According to Alexander Schindler, member of Union Investment’s Board of Managing Directors, the shift to a sustainable economy will shake up the existing order: While some sectors will fare better, others will suffer because their business models are not geared up for the future. There is no doubt, however, that institutional investors firmly believe that sustainability helps to separate the wheat from the chaff. A Union Investment study found that 80 per cent of them now take account of sustainability criteria in their investment decisions.
ESG during and after Coronavirus
Florian SommerSeizing an unprecedented opportunity
The portfolio management specialists looked ahead to the future: What does coronavirus mean for politics, business and the environment? The question is easy to answer in respect of the latter. Florian Sommer, Head of ESG Strategy, says that climate change is just as much of an issue as it was before the pandemic.
What has changed is that we have an unprecedented opportunity, because we can use the vast amounts of government spending on infrastructure to stimulate the green transformation of the economy.
What has changed is that we have an unprecedented opportunity, because we can use the vast amounts of government spending on infrastructure to stimulate the green transformation of the economy.
Dijana BogdanovicSectors divided into two camps
ESG analyst Dijana Bogdanovic says that the sectors are divided into two camps. Take tourism, for example. Airlines and the cruise industry will remain under pressure for quite some time, because the pandemic is providing a boost for regional tourism.
Investors need to seek out the companies that are benefiting from this trend. These include bicycle and caravan manufacturers, which are currently experiencing a mini-boom.
Read our research paper "ESG post coronavirus"
Investors need to seek out the companies that are benefiting from this trend. These include bicycle and caravan manufacturers, which are currently experiencing a mini-boom.
Read our research paper "ESG post coronavirus"
Economic Transformation
Dr Henrik PontzenOpting for transformation
Dr Henrik Pontzen, Head of ESG, says that sustainability always requires companies to ensure they are fit for the future, which in turn requires transformation. “We don’t simply want to invest in those companies that are already sustainable. We also aim to invest in those that want to improve.”
This pays off both in terms of returns and with regard to combating climate change. “We will achieve more by improving poor companies than by optimising good ones.”
This pays off both in terms of returns and with regard to combating climate change. “We will achieve more by improving poor companies than by optimising good ones.”
Katja FilzekAsking the right questions
“We have to take an in-depth look at companies in order to identify those that are well placed for the transformation,” says ESG analyst Katja Filzek. What goals are companies setting for themselves, and how do they plan to achieve them?
Union Investment’s close contact with companies and its years of engagement help when it comes to the evaluation. “We need qualitative assessments, which we obtain by entering into a dialogue and asking the right questions.”
Union Investment’s close contact with companies and its years of engagement help when it comes to the evaluation. “We need qualitative assessments, which we obtain by entering into a dialogue and asking the right questions.”
Virtual AGMs
Janne WerningSetting a course for a greener economy
Janne Werning, Head of ESG Capital Markets & Stewardship, says that meetings with companies are increasingly focusing on transformation and on actively helping them to develop a sustainable economic model.
Union Investment has held more than 130 sustainability dialogues since the start of the pandemic alone. After all, the decision to set a course for a greener economy is made not only in Brussels and Berlin but also at Union Investment’s trading desk.
Union Investment has held more than 130 sustainability dialogues since the start of the pandemic alone. After all, the decision to set a course for a greener economy is made not only in Brussels and Berlin but also at Union Investment’s trading desk.
Dr Vanda HeinenMeasuring our success
ESG analyst Dr Vanda Heinen says that it was good that legislators made it possible to hold virtual annual general meetings. However, they create a variety of challenges for investors.
“The ability to take action is more restricted than at a physical event. We want to be judged on the basis of the success that we achieve through annual general meetings and through our engagement. But for that we need our full rights as shareholders.”
Read our new engage! issue
“The ability to take action is more restricted than at a physical event. We want to be judged on the basis of the success that we achieve through annual general meetings and through our engagement. But for that we need our full rights as shareholders.”
Read our new engage! issue
Closing speech
Alexander Schindler“Hopefully we can meet in person once again in 2021”
“Thank you so much for joining us in our experimental virtual conference,” says Alexander Schindler, member of the Board of Managing Directors. “We believe that companies that operate sustainably have better prospects for the future.” That was the case before the coronavirus pandemic and during the crisis, and will not be any different after the crisis.
The next sustainability conference will take place on 17 June 2021, and “hopefully we can meet in person once again”.
The next sustainability conference will take place on 17 June 2021, and “hopefully we can meet in person once again”.
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2020 Sustainability Conference
Separating the wheat from the chaff
Seizing an unprecedented opportunity
Sectors divided into two camps
Videoclip: Dijana Bogdanovic and Florian Sommer
Opting for transformation
Asking the right questions
Videoclip: Katja Filzek and Dr Henrik Pontzen
Setting a course for a greener economy
Measuring our success
Videoclip: Dr Vanda Heinen and Janne Werning
“Hopefully we can meet in person once again in 2021”