3. March 2022

Focus on development cooperation: FairWorldFonds

CLIENT

Union Investment

SERVICES

Evaluation of the investment universe according to defined ESG criteria

PROJECT PERIOD

Since 2010

Challenge

The German aid organisation Brot für die Welt is initiating the first mutual fund that takes into account social and ecological as well as development criteria: the FairWorldFonds. The investment and thus the selection of the fund’s securities is based on the principles of justice, peace, integrity of creation, and the SDGs.

Solution

imug rating derives an ESG methodology and a multi-level analysis for a reliable selection of securities from the requirements of Brot für die Welt and Südwind. Since the fund’s launch, imug rating provides ESG data in the form of ratings, reportsand controversy monitoring, thereby supporting the criteria committee and the fund management in the selection of securities.

Our process

The FairWorldFonds is the first and probably only mutual fund that takes into account social, ecological and development criteria. It was developed from the approach that ethical principles should also apply to capital markets and that the common good orientation of globalised economic activity should be considered when investing money. The partners Brot für die Welt and Südwind – Institute for Economics and Ecumenism defined the underlying catalogue of criteria. Against this background, Union Investment launched the FairWorldFonds in cooperation with GLS Bank and Bank für Kirche und Diakonie eG – KD-Bank (bank for church and diaconia).

To ensure that the issuers included in the fund comply with the criteria catalogue, imug rating has developed a sound methodology. It ensures that companies, development banks and states are rated regularly and reliably, and that only suitable securities are selected for the fund.

Are you a fund manager looking for support in selecting securities according to individual ESG criteria? Or are you an NGO and would like to use the financial market as an additional lever to achieve your goals? We are looking forward to advising you!

Your personal contact

Imke Mahlmann and her team

"To implement the criteria catalogue, we have found a critical sustainability rating agency in imug rating that is able to put demanding criteria into a sound rating methodology and practice."

Dr. Klaus Seitz,
Head of the Policy Department at Brot für die Welt

Parties involved