7 January 2020

Transforming the economy: Hamburger Nachhaltigkeitsfonds Best-in-Progress

CLIENT

Hamburger Sparkasse

SERVICES

Provision of ESG data according to the best-in-progress approach

PROJECT PERIOD

Since January 2020

Challenge

With the Hamburger Nachhaltigkeitsfonds, Hamburger Sparkasse establishes the first fund based on the best-in-progress principle of the Institute for Sustainable Investments (NKI). The aim is to identify issuers that are making the fastest progress in their sustainability efforts.

Solution

imug rating supports the development of the ESG strategy based on the principles of the best-in-progress approach Since the fund’s launch, imug rating also provides data that maps the screening for exclusion criteria as well as the progress of companies’ ESG ratings.

Our process

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The best-in-progress approach was developed by Rolf Häßler, Managing Director of the Institute for Sustainable Investments (NKI). This approach specifically selects companies that have been able to improve theirsustainability performance significantly in recent years. The progress is measured according to the ESG ratings from the past three to four years. The decisive factor is therefore not the status quo achieved in the area of sustainability, but rather a company’s progresstowards a more sustainable way of doing business.

Based on the ESG rating, companies with the lowest ratings are eliminated in a first step. Varieties of indicators, such as environmental protection, social dialogue or business ethics, play a role in this process.

This ensures that the companies remaining in the investment universe meet the minimum requirements for ESG quality. In the second step, the remaining investment universe is screened for certain exclusion criteria, e.g. nuclear energy, fossil fuels, arms deals or violations of the UN Global Compact. In the third step, the best-in-progress approach is applied. Only those issuers are eligible for investment that have made the greatest progress in the ESG ratings from the past years. For the analysis, comprehensive historical data is required above all.

Are you a fund manager and need an ESG strategy as well as ESG data for your securities selection? We are looking forward to supporting you!

Your personal contact

Sebastian Zeile and his team

“imug rating provides the sustainability data for Hamburg’s Sustainability Fund and takes over the demanding best-in-progress evaluation. In our cooperation, we particularly appreciate the personal service as well as the accompanying support in the development and marketing of the product.”

Tina Hecking,
Hamburger Sparkasse