Companies with an attractive quality-/valuation-ratio are examined by a sustainability analysis from our partner Vontobel Asset Management AG (VAM). VAM investigates the chances and risks regarding to environmental impacts, social aspects and corporate governance (ESG). VAM relies on database, for example resource consumption or pollutant emissions. In addition they analyse with own specialists social or legal risks, assess management processes and evaluate the environmental impact on the entire value chain from the suppliers through the production to the use of the products.
The contribution of the sustainability examination to the investment process is on the one hand, the identification of the governance and the company culture. On the other hand it locates the sustainability analysis of specific risks, that are not or insufficiently considered by accounting. The sustainability examination is a useful framework in addition to Carnot’s work which is mostly based on financial ratios.