Funds generally invest globally in various equities and other investment vehicles. It can thus be very difficult to check the sustainability of each individual investment. The basic problem: there is no uniform definition of sustainability.
The ESG criteria for companies provide guidance. Compliance with the ESG (environment, social, governance) criteria is checked by well-known rating agencies. Essentially, it is about where companies stand on ecology and the environment, their social responsibility and compliance management.
ESG criteria can also play a role in selecting sustainable investments. For example, companies can define certain exclusion criteria, such as the production of and trading in weapons.
Among other things, Helvetia Allegra funds also take ESG criteria into account when selecting the appropriate investment vehicles.