What is ESG investing?

In Europe, Middle East and Africa as well as in Asia Pacific this material is considered marketing material, but this is not the case in the U.S. The value of an investment can fall as well as rise and you might not get back the amount originally invested at any point in time. Your capital may be at risk.

No assurance can be given that any forecast or target can be achieved. Forecasts are based on assumptions, estimates, opinions and hypothetical models which may prove to be incorrect. Past performance is not indicative of future returns. Performance refers to a nominal value based on price gains/losses and does not take into account inflation. Inflation will have a negative impact on the purchasing power of this nominal monetary value. Depending on the current level of inflation, this may lead to a real loss in value, even if the nominal performance of the investment is positive.

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ESG is an acronym that stands for Environment, Social, Governance. Our ESG framework takes into account applicable regulations and is assessed and updated continually, plus guiding principles developed in-house based on Deutsche Bank’s values and beliefs.

There is currently a lack of uniform criteria and a common market standard for the assessment and classification of financial services and financial products as sustainable. This can lead to different providers assessing the sustainability of financial services and financial products differently.

In addition, there are various new regulations on ESG and Sustainable Finance, which need to be substantiated, and further draft regulations are currently being developed, which may lead to financial services and financial products currently labelled as sustainable not meeting future legal requirements for qualification as sustainable.

We utilize data as well as ESG assessment methodologies that are supplied by independent third-party provider(s). These third-party assessment methodologies and corresponding ratings are therefore subject to change, which may result in turnover in investments within a portfolio to remain in line with an agreed ESG baseline.

ESG ratings are not currently regulated. Therefore, it is important to note that there is a selection of such data providers in the market, and methodologies between these can vary leading to different ratings for the same instruments.

ESG principles may result in a less diversified, more concentrated portfolio. ESG investing may result in the exclusion of specific industries.