Sber – Global Internet equity fund receives high ESG rating

Jan 13, 2022

Rating agency ACRA has given Sber – Global Internet[1] a high rating of ESG-4 in the ESG-B category, making the equity fund the fourth Sber Asset Management fund to receive an ESG rating.

The assessment has to do with the structure of the fund, which invests in the shares of companies whose business is directly related to the internet: internet portals, online stores, internet technology, including internet access and production of smartphones and software for them.

The evaluation is made up of several blocks of components and assesses the company's performance in the following areas: environment (ESG-E), social responsibility (ESG-S), and corporate governance (ESG-G).

The grade for Part E of the evaluation (environment) reflects the desire of the companies in the fund to minimize environmental risks, as well as their ability to counter them. The agency noted the high level of work carried out by the companies reviewed with priority climate risks and the existence of public goals to reduce greenhouse gas emissions. The companies have prepared key high-level documents on the management of the main sectoral environmental risks, implemented an ESG management system, and responsible supply chains principles. These companies are characterized by a high level of information disclosure. Many of them participate in various voluntary climate initiatives, publishing reports in accordance with international standards.

The rating in Part S (social responsibility) reflects a high level of social risk management and sufficiently high social business responsibility standards. The companies in the fund are responsible employers, contribute to the development of local communities, and feature developed sustainable development and social responsibility practices. The agency commended the companies' human rights and anti-discrimination policies and procedures, as well as the publicly announced goals and declarations in this area.

The grade for Part G (corporate governance) assesses the management company, Sber Asset Management, and reflects its high standards of corporate governance, advanced integration of ESG principles into management practices, and good brand reputation.

Evgeny Zaitsev, CEO, Sber Asset Management:

“The ESG agenda is rapidly gaining momentum not only at the global level, but also in Russia. We were the first management company to receive an ESG rating from a rating agency accredited by the Bank of Russia. We will continue evaluating our funds for compliance with ESG factors in order to enable our clients to make their investment choices not only on the basis of the fund's investment ideas, structure, and yield dynamics, but also in terms of responsible investment.”

The ESG evaluation is based on data provided by Sber Asset Management, open-source data, and the ACRA database.

[1] Sber – Global Internet open-end mutual fund for market financial instruments.