RobecoSAM

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RobecoSAM

Industry	Financial services
Founded	1995
Headquarters	Zurich, Switzerland
Products	Asset management
Parent	Robeco
Website	robeco.com

For over 25 years, the RobecoSAM name has been synonymous with sustainable investing (SI). As one of the original ESG natives, RobecoSAM is known for its pioneering and focused work on SI.^[1] Today, RobecoSAM is the name Robeco, an international asset manager, uses to designate selected SI intelligence and SI research and tooling, as well as its impact funds. Robeco uses the collective RobecoSAM knowledge in each and every investment process, recognizing the 25 years of SI expertise it represents. Using RobecoSAM as an ingredient brand reflects the way in which SI is at the core of everything Robeco does.

Specifically, the RobecoSAM name is used for the Robeco sustainable thematic strategies as well as the equity and fixed income impact strategies. Together, they form the Robeco impact product range, which is designed to make a measurable environmental or societal impact and contribute to the SDGs.

Furthermore, the RobecoSAM name also designates the proprietary RobecoSAM Smart ESG Scores, RobecoSAM SDG Scores, RobecoSAM Country ESG Scores, RobecoSAM Gender Scores, and the RobecoSAM Environmental Footprint Tool Scores.^[2]

History[]

The company was founded by Reto Ringger in 1995 as the world's first investment company focused solely on sustainability themes.^[3] RobecoSAM was established in Zurich, Switzerland, and considered economic, environmental and social criteria in its investment strategies. The company had a series of thematic strategies based on themes such as water, energy, climate, agriculture, and healthy living. In addition to asset management, together with S&P Dow Jones Indices the company launched the globally recognized Dow Jones Sustainability Indices (DJSI) in 1999.^[4] RobecoSAM published the DJSI in partnership with S&P Dow Jones Indices until 2019 when S&P Global completed its acquisition of the ESG ratings and benchmarking businesses from RobecoSAM which included the widely followed Corporate Sustainability Assessment (CSA) – the annual evaluation of companies’ sustainability practices which RobecoSAM designed and ran for 20 years. The transaction with S&P Global also included the Sustainability Yearbook, an annual publication showcasing corporate sustainability leaders based on the results of the CSA, which RobecoSAM launched in 1999. Additionally, RobecoSAM also had a private equity arm of the business.^[5]

In 2006, Robeco acquired SAM. In 2013, SAM became RobecoSAM, operating as a sister company of Robeco until 2020, when the RobecoSAM entity became Robeco Switzerland Ltd. and Robeco began using the RobecoSAM name as an ingredient brand.

Timeline[]

1995 Reto Ringger founds SAM

1999 SAM and Dow Jones launch the Dow Jones Sustainability Indexes

2001 First global sustainable water fund launched (SAM Sustainable Water Fund)

2001 SAM becomes first carbon neutral company in Switzerland

2003 SAM Smart Energy Fund launched^[6]

2005 SAM Sustainable Global Equities strategy launched

2006 Acquired by Robeco

2006 SAM introduced a division called sustainability services that provides sustainability benchmarking reports to companies.

2006 RobecoSAM Smart Materials Strategy launched

2007 RobecoSAM Sustainable Healthy Living strategy launched

2009 Integration of Robeco Clean Tech Private Equity at SAM's headquarters

2010 SAM named SRI/Sustainable Investment Manager of the Year^[7] by Financial News

2010 Robeco Switzerland merges with SAM^[8]

2011 RobecoSAM Smart Energy Fund named Best Clean Energy Fund by Investment Week^[9]

2011 RobecoSAM manages SAM Sustainable Agribusiness Equities Fund and SAM Sustainable European Equities Fund^[10]

2012 RobecoSAM named Sustainable Investor of the Year by the Financial Times and the International Finance Corporation^[11]

2013 SAM becomes RobecoSAM

2013 DJSI Diversified Family launched

2013 Country Sustainability Ranking launched

2014 RobecoSAM Global Small Cap Equities strategy launched

2015 S&P ESG Sovereign Bond Index Family launched

2015 S&P Fossil Fuel Index Family and S&P FFF Carbon Efficient Index Family launched

2015 RobecoSAM Global Gender Equality Impact equities strategy launched

2016 S&P ESG Factor Weighted Index Family launched

2017 RobecoSAM Global SDG Impact Equities strategy launched

2018 RobecoSAM Smart Mobility Equities strategy launched^[12]

2020 S&P Global acquires the ESG ratings and benchmarking businesses from RobecoSAM^[13]

2020 RobecoSAM Circular Economy Equities strategy launched^[14]

2020 RobecoSAM becomes an ingredient brand of Robeco ^[15]

Operations[]

Previously, the company's assets under management and advice amount to about US$11.5 billion (as of June 30, 2012).^[16]

The main areas of business were: asset management, indexes, private equity and sustainability services (company benchmarking reports).^[17]

In 1999, RobecoSAM and Dow Jones Indexes came together to produce the world's first family of sustainability indexes called the Dow Jones Sustainability Indexes (DJSI).^[18] In 2012, S&P Indices and Dow Jones Indexes merged to form S&P Dow Jones Indices.^[19] AS a result, SAM worked with S&P Dow Jones Indices to produce the DJSI.

Companies were chosen for the index based on an assessment of their economic, environmental and social practices as part of the Corporate Sustainability Assessment.^[20]

The Dow Jones Sustainability Index Family includes:^[16]

• Dow Jones Sustainability World Index
• Dow Jones Sustainability Europe Index
• Dow Jones Sustainability North America Index
• Dow Jones Sustainability Asia Pacific Index
• Dow Jones Sustainability Korea Index

Asset Management[]

The asset management business was based purely on investing in sustainable companies. Sustainable investing is based on the assumption that financial markets represent a powerful mechanism to promote sustainable business practices. Proponents of sustainable investing say that integrating sustainability considerations into investment decisions can lead to superior risk-adjusted returns over the long term.^[21]

SAM had theme strategies based on major sustainability trends such as water, energy, materials, agribusiness, and climate. It also had core regional products such as a sustainable global active fund and a sustainable European equities fund.^[22] The SAM Sustainable Water Fund received a lot of recognition as it was one of the first of its kind to be launched in 2001.^[23] In 2011 it celebrated its 10th Anniversary.^[24]

Clean Tech Private Equity[]

SAM housed the clean tech private equity team of its parent company Robeco, which is a member of Orix.^[25] The concept of clean tech investing is based on a world that is characterized by rapid population growth, finite natural resources, high prices and material shortages; all of which call for more efficient production processes. Investments include products, services, and processes across industry verticals that are designed to improve the productive and responsible use of natural resources, greatly reduce or eliminate environmental damage and provide superior performance at lower costs.^[26]

SAM Clean Tech Private Equity invests in sustainable private equity through co-investments in unlisted companies or through private equity fund of funds. Since 2004, they have been integrating the ESG framework into investment process. The United Nations Principles for Responsible Investment indicated that SAM Clean Tech Private Equity is a leader in integrating ESG into the investment process as well as into its ownership policies and practices.^[27][28] In 2010, Investment & Pensions Europe (IPE) named SAM Private Equity as the most Responsible European Private Equity Investor.^[29]

The table below demonstrates some examples of clean tech sectors and technologies:

The entire Robeco PE business was acquired by Stafford Capital Partners in 2020.^[30]

Sustainability Services[]

In 2006, SAM founded a sustainability services division which later became the ESG benchmarking team. Sustainability services provided company benchmarking reports^[31] that provided companies with details about their individual sustainability performance as well as a peer group comparison.^[32] Companies can see their strengths and weaknesses mapped against sustainability criterion and compared to best practice examples.^[33] In 2019 S&P Global completed its acquisition of the ESG ratings and benchmarking businesses from RobecoSAM which included the widely followed Corporate Sustainability Assessment (CSA) – the annual evaluation of companies’ sustainability practices which RobecoSAM designed and ran for 20 years.

RobecoSAM Research[]

RobecoSAM's asset management, index and sustainability services were all rooted in its proprietary in-house research division. The financial analysts generate stock recommendations based on a combination of financial sustainability criteria.

The Research team developed the methodology for the annual Corporate Sustainability Assessment that is still used today by S&P Global to determine the Dow Jones Sustainability Index.^[34] RobecoSAM research analyzed companies along sustainability metrics since 1995 and developed one of the largest global corporate sustainability databases. The research department often collaborated with academia to share the valuable data from this proprietary database. Ongoing collaborations included projects with ETH and IESE Business School.

Corporate sustainability assessment[]

What started out as a paper-based questionnaire in 1999 has now grown into one of the world’s most extensive corporate sustainability databases. The Corporate Sustainability Assessment is an industry-specific questionnaire that is sent out to companies around the world. Prior to the acquisition by S&P Global in 2020, RobecoSAM annually assessed companies in 60 industry groups and determined their respective sustainability rating.^[35] The assessment examined companies based on environmental social and corporate governance factors (ESG factors), which served as the primary basis for determining a company's level of sustainability and subsequent global impact.^[36] The questionnaire had a focus on long-term sustainability topics that are relevant to each industry including human capital, brands and innovation. Some of the sectors they looked at included: airlines, communication technology, beverages, auto parts & tires, waste & disposal services, and electricity.^[37] After the assessment, each participating company received a peer benchmarking analysis.^[38]

The family of Dow Jones Sustainability Index are based on the results of the Corporate Sustainability Assessment.^[34] The findings were then presented in the Industry Leader Report for each of the 60 industries assessed via the Corporate Sustainability Assessment and represented in the Dow Jones Sustainability Index.^[39] From 2015 to 2017, the Swiss bank UBS was consistently recognized as a group leader in category Diversified Financials.^[40]

Much of the data derived from the Corporate Sustainability Assessment was and is still used in SAM's and more recently Robeco’s financial analysis. The data is integrated into the valuation models. Full integration of sustainability into valuation analysis is a differing approach to using data as a sustainability overlay. Advocates of the integration approach state that it is a more accurate reflection of the companies value as it takes into account the various ways in which sustainability factors affect different business models and cost structures.^[41][42]

Also from the results of the Corporate Sustainability Assessment, RobecoSAM produced a "Sustainability Yearbook"^[37] in which they revealed corporate sustainability "sector leaders" and/or "sector movers". They also gave a small number of companies a classification of gold, silver or bronze to recognize their added commitment to sustainability issues.^[43] Sector leaders in the past have included: Adidas, BMW, Nokia, Panasonic, PepsiCo, Pirelli, and Rolls-Royce Group plc. Sector movers in the past have included: Air France, Fiat, Hormel, IBM, Mitsubishi, and Starbucks.

Since the acquisition of the ESG ratings and benchmarking businesses from RobecoSAM in 2019, the Sustainability Yearbook has been published by S&P Global.^[44]

Awards[]

• RobecoSAM named “Best ESG Fund Management Group” at the 2017 Investment Week Sustainable Investment Awards^[45]
• RobecoSAM Sustainable Water Fund wins first prize in "Les Grands Prix de L'Agefi" in 2016 ^[46]
• RobecoSAM Wins “SRI Provider of the Year” at the European Pensions Awards 2016^[47]
• RobecoSAM wins Institutional Investor magazine‘s “ESG Manager of the Year” award in 2016^[48]
• Funds Europe named SAM “European Thought Leader” in 2012^[49]
• SAM was named “Sustainable Investor of the Year” by the Financial Times (FT) and the International Finance Corporation in 2012^[50]
• Best Climate Change Fund, 2010: The SAM Sustainable Climate Fund was awarded the "Best Climate Change Fund" by Investment Week^[51]
• SRI/Sustainable Investment Manager of the Year Award, 2010: awarded by Financial News in October 2010.^[52]
• TBLI Best Asset Manager Investing in ESG, 2008, 2009: awarded by IPE TBLI Group ESG Leaders Awards^[53]

Memberships[]

RobecoSAM was a member of the following organizations, among others:^[54]

• PRI, Principles for Responsible Investment^[55]
• Eurosif, European Social Investment Forum^[56]
• Ceres, Investors and Environmentalists for Sustainable Prosperity
• ASrIA, The Association for Sustainable & Responsible Investment in Asia^[57]

See also[]

• Robeco
• Dow Jones Sustainability Index
• Dow Jones Indexes
• World Water Index

References[]