情報提供資料／貴社内限Latest Trends in Global ESG
Investments
Where we are now and where we are heading
Simon Klein | Global Head Xtrackers Sales

ドイチェ・アセット・マネジメント株式会社
金融商品取引業者 関東財務局長（金商）第359号
加入協会： 日本証券業協会、一般社団法人投資信託協会
一般社団法人日本投資顧問業協会、一般社団法人第二種金融商品取引業協会
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情報提供資料／貴社内限「地球は私たちのものではなく、子供たちから借りているものです」“The earth is not ours; we borrow it from ourchildren”
Name of speaker / Name of event / Date2

情報提供資料／貴社内限

Simon Klein
Global Head Xtrackers Sales

DWS Xtrackers

3情報提供資料／貴社内限

01 ESG, where we areAgenda

02 Sustainability trends in Europe
03 Climate in the spotlight
04 We are the right partner on your side4

情報提供資料／貴社内限

DWS History in Responsible Investments
Key millstones in a nutshell

DWS is among the first 30 signatories of
Net Zero Asset Managers initiative
Publication of our second sustainability
reportSignatory of the Principles
for Responsible Investment(PRI)2008 – DWS ESG Policy
2009 – First Carbon ETF

1994 - kick off

2014 – DWS ESG Engine

Launch of our firstmicrofinance funds makes
DWS a pioneer in theindustry.

Launch of the DWS ESG Engine,
our proprietary developed
application for the classification oflisted companies according to ESG
criteria

First active participation in
an investee company’s
AGM marks the roots of
our European View onGood Governance2017 – First ESG Xtrackers ETF

2020 – NetZero Industry initiative2018 – Xtrackers ESG Equity Range

2022 – Climate benchmarks
Launches extensive
Paris-aligned benchmark
range covering key
regions. DWS wins ESG
research of the year award
by Environmental FinanceSource: DWS International GmbH as of 24.01. 2023
Simon Klein | Xtrackers | 4Th April 2023 | Tokyo5

情報提供資料／貴社内限Factors Driving Growth in ESG Assets
Financial Performance, Regulatory Aspects & Investor Demand
ESG ETF Assets by Fund Domicile
Europe Retains ESG ETF Crown as North America Wavers

Financial Performance
Risk mitigation by means of including nonfinancial information

Regulatory Aspects
Growth of ESG related policies worldwide

Investor Demand
Increased awareness of sustainable investing,especially on the institutional side

The decline in ESG and values-based ETF assets in 2022 was driven largelyby the US, as Europe showed support, a trend we see continuing onfavorable regulations such as MiFID II in Europe.

Source: Bloomberg Intelligence, as of 24.01.2023
Simon Klein | Xtrackers | 4Th April 2023 | Tokyo6情報提供資料／貴社内限

ESG | Investor Demand
Rapid Acceleration of ESG ETF Assets due to EU regulatory
300

Equity250

Fixed Income

Sum

200
150
100
5002015201620172018

2019

2020

2021

2022

UCITS Market/ESG NNA (bars) and ESG share (line) since 2019
UCITS Market NNA

ESG NNA

ESG NNA %20080%
49%

15033%

1005065%

60%
40%

8%

20%

00%
2019

2020

2021

2022

Source: Bloomberg L.P; DWS International GmbH as of Dec 2022.
Simon Klein | Xtrackers | 4Th April 2023 | Tokyo7

情報提供資料／貴社内限UCITS ESG Market flow picture
Climate is growing in importance and is the largest dedicated ESG investment area
ESG UCITS Market AuM

ESG UCITS Market flow 3Y

UCITS Market vs. UCITS ESG flow YTD

ESG Investment buckets, in € bn

ESG Investment buckets, in %UCITS Market inflow YTD, in bn €60%

35.000Total

30.00050%
Thematic

25.00040%

Screened

20.00030%

24,72%

Impact15.00020%

10.000

Climate

27%

5.000

10%
Broad

0100200

300

00%
Broad

ClimateImpact Screened Thematic

UCITS Marketflow YTD

UCITS ESG Marketflow
YTD

Tausende
Source: DWS International GmbH, as of 21.03.2023
Simon Klein | Xtrackers | 4Th April 2023 | Tokyo8

情報提供資料／貴社内限Negative Exclusion

Positive | Best-in-class

Thematic Investing

Climate Investing

Exclusion of companies
based on specific ESG
criteria. The oldest and mosttraditionalroute,andgenerally based on businessinvolvement or revenuescreens.

Focus on investing in stocks withsuperior
ESG
performance,
relative to their regional, industry,and sector peers.

Targeted
investments
focusing
onspecificproblems related to ESG.
Generally, require certain
amounts of revenue to be
derived from specific areas,orcarryweightings
dependent on certain ESG
criteria. .

Carbon emissions are a major driverof global warming. Dedicatedclimate-related investment strategies
are supporting keeping global
warming below 1.5°C. Reducing
carbon emissions and setting adecarbonization trajectory are at thebasis of climate-related investments.

Source: DWS International GmbH
Simon Klein | Xtrackers | 4Th April 2023 | Tokyo9

情報提供資料／貴社内限Evolution of ESG in Europe
Strategic grids for Portfolio managers

Art.9 MIFID aligned

Art.8 MIFID aligned

12SRIHigh Exclusion RateProducts

SCREENED
Low-Medium Exclusion
Rate Products

3

CLIMATE
Alignment with Paris
Objectives: PAB or CTB•

Distinct ESG Integration and risk
reduction•Basic ESG Risk Mitigation with low
Active Share•

Achieve alignment with Paris
Objectives•Best in Class ESG ratings•••SRI business filters

ESG screens most serious norm
violations, controversial activities
and ESG ratings

Source: DWS International GmbH as of March 2023
Simon Klein | Xtrackers | 4Th April 2023 | Tokyo•

4IMPACT
Significant contribution
to sustainability•

Apply EU Paris-aligned Benchmark
rules from EU

Have a significant contribution tosustainability through investments
in solution providers•

Climate Transition / IIGCCC
recommendations

Additional ESG screens to ensure
good governance practices•

Do No Significant Harm principle
10情報提供資料／貴社内限Capturing the SDGs through a thematic lensA new angle for focused portfolio construction

MEGATRENDS OF OUR TIME

Climatechange
Demographicshifts

SDG Investing• Investing in companies that align with the United Nations SDGs
• Addressing needs of the present by targeting selected goals• Focusing on net positive contribution

Urbanisation

DigitalTechInequalities

Innovation Investing• Investing in companies or projects that are at the forefront of
new and emerging technologies or industries• Forward-looking company selection• Focusing on purity and relevance

Source: DWS International GmbH, as of April 2023
Simon Klein | Xtrackers | 4Th April 2023 | Tokyo11情報提供資料／貴社内限Market perspectives on SDGs
Rising importance of sustainability for corporates and investors alike
CEO view: Who influences corporate sustainability?

Investor view: Do you use SDG-related vehicles?

Most important stakeholder group to influence sustainability
management, by % of respondents% of respondents

68%

52%

34%

18%

28%

Today

Next 3 years

33%
22%

Consumers

Governments

Investment
Community

Employees

BoardsThe growing demand for SDG-aligned
investments can influence companies in theirsustainability behaviour

Source: UN Global Compact, Accenture, as of January 2023, CREATE Research Survey 2022
Simon Klein | Xtrackers | 4Th April 2023 | Tokyo12

情報提供資料／貴社内限The UN Sustainable Development Goals
A globally agreed sustainability framework – the most ambitious global agenda to date
Why is the timing relevant ?
- Annual funding gap of $4 trillion USD

17 Sustainable Development Goals
Part of the 2030 Agenda for Sustainable Development of the United
Nations – Adopted by all 193 member states of the UN- OECD states that index investing by institutional investors can be
one meaningful way to re-direct capital towards firms that are inline with the SDGs
- Data availability, company coverage and assessments of different
issues have drastically improved over the last years, allowing us toobserve a majority of publicly listed companies through an SDG
lens and consider the full value chain from a product perspective
as well as with their corporate behavior

Source: DWS International GmbH, SDG investing, A dual purpose for investors and society, Investment Insights February 2023
Simon Klein | Xtrackers | 4Th April 2023 | Tokyo13

情報提供資料／貴社内限The time for action is now
Meeting the Paris goals will be a challengeWith less than 11% of public companies aligned with a 1.5°C temperature rise threshold, the global carbon
budget to limit global warming to 1.5°C will be exhausted by November 2026

44228

Months left to keep warming
below 1.5°CMonths left to keep warming
below 2°C

Time remaining until listed companies deplete theemissions budget for keeping global temperature rise
below 1.5°C this century

Time remaining until listed companies deplete theemissions budget for keeping global temperaturerise below 2°C this century

Source: MSCI, based on the emissions trajectory of the MSCI ACWI IMI, as of May 2022. The MSCI Net-Zero Tracker is a quarterly gauge of climate change progress across a global universe of 9,300
public companies based on the MSCI All Country World Investable Market Index (ACWI IMI). Forecasts are based on assumptions, estimates, views and hypothetical models or analyses, which mightprove inaccurate or incorrect.
Simon Klein | Xtrackers | 4Th April 2023 | Tokyo14

情報提供資料／貴社内限Paris-aligned indices are recognised as a tool…
DWS & Create Research Survey 2022 – „Net Zero: Going beyond the hype“Importance of climate investing

Importance of PACT indices in delivering on net zero targets% of respondents% of respondents

62%
6%
Too soon to say

It is a foundational
trend that marks a newway of investing20%
Not important

52%
Very important10%
It is a bubble
that is likely
to burst

22%
It is a foundational
trend punctuated byperiodic bubbles

28%
Somewhat
important

Source: CREATE-Research Survey 2022
Simon Klein | Xtrackers | 4Th April 2023 | Tokyo15情報提供資料／貴社内限Climate benchmarks
Different types of Climate Benchmarks; one shared objective
NetZero2050

NetZero2050

PAB

NetZero2050

Carbon Reduction 30%•

Decarbonisation
Trajectory 7%•

Protection against
climate related•

Carbon Reduction 50%•

Decarbonisation
Trajectory 7%•••

carbon budget for theBeing at the forefront ofplanet in order to limit

climate transition andExposure to Companies

Leading the Transition
to a Low Carbon
Economyglobal warming

aiming to align with the+1.5°C scenario today

300GtCO2 remaining•

Means to reduceinvestment risks –volume of CO2 by 12%“transition risks”

per year

Simon Klein | Xtrackers | 4Th April 2023 | Tokyo

ActionBudgetCTB•NetZero2050

16情報提供資料／貴社内限

CREATE-RESEARCH REPORTS ON PASSIVE INVESTING
2022 reports launch into key topics

PASSIVE
2018

ENVIRONMENT
2020

SOCIAL
2021

GOVERNANCE
2019

NET ZERO
2022

IMPACT INVESTING
2022

Reshaping the global
Investment Landscape

Addressing Climate
Change in Investment
Portfolios

Rise of theSocial Pillar of ESG

The Riseof Stewardship

Going beyond
the Hype

Advancing into
Public Markets

As of: August 2022. Source: CREATE-Research, DWS International GmbH
Simon Klein | Xtrackers | 4Th April 2023 | Tokyo17

情報提供資料／貴社内限2020-2023

from #19 to #12

DWS improves significantlyin Share Action Report 2023

#12out of 77

Improved especially in Climate,Biodiversity, Human Rights since2020 and is the best-rated
German asset manager

ShareAction is an NGO working globally to define
the highest standards for responsible investment
and drive change until these standards are
adopted worldwide

Source: ShareAction Report “Point of No Returns 2023”, as of March 2023
Simon Klein | Xtrackers | 4Th April 2023 | Tokyo18

情報提供資料／貴社内限

ありがとうございました
Many thanks for having me in Tokyo

Name of speaker / Name of event / Date

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