Sustainable investing
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VP Bank's approach to responsible and sustainable investing
Our group policy, 'Responsible Investment Policy', demonstrates our approach and commitment to the Principles for Responsible Investment (UN PRI).
There are various approaches to responsible investing. At VP Bank, our asset management takes a comprehensive approach, combining various aspects to offer investors a systematic approach. The VP Bank Sustainability Score (VPSS) forms the basis for this.
Investments recommended by VP Bank meet a minimum sustainability threshold, so clients do not need to use a separate service. The VPSS is used to actively manage sustainability risks, minimise negative impacts, and seize opportunities.
VP Bank Sustainability Score
The VP Bank Sustainability Score (VPSS) serves as a basis for assessing environmental and social characteristics in investment decisions. It is our compass for evaluating sustainability-related impacts, risks, and opportunities in individual investments and in a portfolio context.
From a methodological perspective, it combines several dimensions (such as a best-in-class approach and exclusion criteria), enabling systematic, consistent, and comparable implementation across different individual investments, asset classes, and financial products. It also allows us to continuously monitor the overall portfolio in terms of sustainability factors.
When selecting stocks, bonds and funds, we use sustainability criteria to broaden our analysis of opportunities and risks. Our sustainability score provides transparency. Clients can clearly see how their portfolio aligns with sustainability and which aspects we consider in our assessment. Each of the five pillars that make up the VPSS has a clearly defined objective.
| Focus | Basis | Motivation |
| Risk | ESG-Rating | We reduce ESG risks in our portfolios by avoiding companies with low ESG ratings. |
| Risk & Impact | Business practices | We avoid companies with business practices that are illegal or violate international standards. |
| Risk & Impact | Business activities | We have defined minimum ethical standards that determine the areas in which the companies in which we invest should not be active. |
| Opportunities | ESG momentum | We finance the transition to a more sustainable future by investing in companies that demonstrate continuous improvement in their ESG performance. |
| Impact | Sustainable Development Goals (SDG) | We prioritise companies that have a positive impact on the environment and society by contributing to one or more of the Sustainable Development Goals (SDGs). |
Our “red line” in business activities and practices
We exclude investments involving human rights violations, child labour, corruption and bribery. Such practices are not in line with our understanding of responsible business conduct. We refer, among other things, to the following international norms and standards: The UN Global Compact, the UN Guiding Principles on Business and Human Rights, the ILO labour and social standards and the OECD Guidelines for Multinational Enterprises.
Business activities refer to the products and services offered by a company. We exclude investments in companies active in critical business areas such as tobacco, gambling, coal and controversial weapons (e.g. anti-personnel mines, cluster munitions and chemical and biological weapons).
This 'red line' applies to all recommended financial instruments, discretionary mandates, the VP's own funds and our on-balance sheet investments.
Our “Plus” mandate series
We believe that incorporating sustainability factors results in better risk-adjusted investment outcomes in the long term. This is why we integrate sustainability factors into all our portfolio solutions, building blocks and product selection.
Clients with a heightened preference for sustainability go one step further.
VP Bank has created the “Plus” offering for these clients. This includes adding impact-aligned thematic investments to the portfolio, as well as impact-generating investments that achieve a measurable environmental and social impact.
With thematic investments, you can invest specifically in companies whose products or services help reduce emissions or protect the environment. For example, you can invest in renewable energies.
Another option is bonds that finance green and social projects. These impact investments achieve a tangible effect in terms of climate protection and social change. This is achieved through investments in green bonds, social bonds and microfinance investments with a measurable impact.
Further VP products
We also offer our own products that align with our responsible investment philosophy. The VP Risk Optimised ESG Funds are based on the VPSS and combine sustainability factors with a risk-optimised investment strategy.
Our VP Thematic Funds invest in companies set to benefit from future trends in the consumer, industrial, and infrastructure sectors. These include sustainability themes with an impact-oriented focus on environmental and social aspects. Stock selection and portfolio construction also incorporate the VP Bank Sustainability Score (VPSS).