The three sustainability filters of the IBS 30
At IBS, we use the MSCI ESG database to filter ESG (Environmental, Social, Governance) criteria. This way we can exclude any unsustainable stocks. We do this in three steps:
- UN Global Compact: we only select companies that uphold their fundamental responsibilities in four areas, according to criteria laid down by the United Nations: Human rights, Labour, Environment and Anti-corruption.
- The ‘Goede Doelen Nederland Guideline’: we only select companies that are in line with the Goede Doelen Nederland (Charitable Causes of the Netherlands) Directives for sustainable investment. These guidelines are based on UN Global Compact with extensive criteria. For example, the exclusion of tobacco.
By applying these two filters, IBS only considers stocks in the sustainable sector of the investment universe. And then from the stocks that remain, we seek companies for the IBS 30 who hold a longterm competitive advantage.
- Our own evaluation: We conduct fundamental research before investing in a company. In this we record, among other things, the ESG position of a company. Only when a company meets our criteria do we consider a possible inclusion in the IBS 30.
We continuously monitor the companies in the IBS 30. For example, we look at the business figures and ESG updates of MSCI ESG research. If this shows that a company no longer meets our criteria, we will sell it.
We are more than happy to explain further how we decide to include or exclude a stock.
Visible ESG impact
The classification of our investment process is light green. At portfolio level, we keep track of how much better the IBS 30 scores on ESG criteria compared to our benchmark, the MSCI World Index. We report on this in our reviews and quarterly reports.
We believe that sustainable companies are better prepared for the future and therefore have reduced financial risk. Furthermore, we are convinced of a strong positive correlation between ESG performance and business performance.