DWS Concept ESG Blue Economy

Investing in the economic power of the seas

The oceans – sensitive ecosystem and important economic area

We love the sea. We use the sea as a recreational space. We sunbathe on the beach, engage in water sports, go on cruises or enjoy the magnificent view of the water. Even more important: We need the sea.

Seas and oceans produce oxygen, absorb geothermal heat and thus regulate the earth‘s climate. At the same time, we also benefit from the sea. The value of the products and services that are generated with and by the oceans and seas per year is 2.5 trillion dollars. This economic power is popularly referred to as the Blue Economy. It includes industries and sectors that have a connection to oceans, seas and coasts, regardless of whether their activities take place on or in the sea or on land..

The oceans are important for our ecosystem and economy

Why are the oceans so important for us?

 

Around 70% of the earth's surface is covered by oceans!

 

50 times more

carbon dioxide (CO2) is bound by the oceans than absorbed by the atmosphere. They produce more than 50% of the oxygen.[1]

93% of the earth's heat

is absorbed by the oceans, thereby regulating the earth's climate.[2]

90% of global goods

are transported by maritime routes.[3]

2.5 trillion dollars

is the value of products and services generated by the Blue Economy per year. A state with a comparable gross domestic product would be the seventh largest economy in the world. [4]

 

Our oceans are threatened

Why is it essential to conserve resources in the oceans?

  

Oceans are indispensable for us - the challenges are manifold

 

Overfishing

Globally, 33% of commercial fish stocks are considered overfished and 57% are considered maximally exploited.[5]

Pollution

An estimated 80 to 150 million tons of plastic float in our oceans.[6]

Flooding

Coastlines and production facilities are at risk from rising sea levels and extreme weather.[7]

Destruction of livelihoods

Around 26% of all people depend on the sea for their livelihoods.[8]

 

DWS Concept ESG Blue Economy

DWS Concept ESG Blue Economy

DWS Concept ESG Blue Economy

According to OECD estimates, the Blue Economy will grow faster than the established economy by 2030. In an interview, fund manager Paul Buchwitz provides a deeper insight into the topic and the fund behind it.

The fund meets these challenges

The DWS Concept ESG Blue Economy invests in companies that are directly or indirectly connected to the oceans through their products and services. These are so-called solution providers[9] and companies in transition[9].

Solution providers

Can already contribute to a more sustainable Blue Economy with their services or products.

Companies in transition

Efforts are being made to conserve resources in the use of the oceans.

Icon - Fischfutterhersteller.png Alternative sustainable fish feed producers
Icon - Emmisionsminderung.png Technologies to reduce emissions in shipping
Icon - Verpackungsindustrie.png Packaging industry (biodegradable materials)
Icon - Energietechnologie.png Renewable energy technologies
Icon - Inspektionsdienstleister.png Certification, testing and inspection service provider
Icon - Abwasseraufbereitung.png Circular economy
Icon - Aquakulturen.png Aquaculture/wild fisheries in the oceans
Icon -Globale Schiffahrt.png Global shipping and ports
Icon -Konsumgüter.png Consumer goods companies
Icon - Energie.png Energy and resources
Icon - Küstenschutz.png Coastal protection
Icon - Tourismus.png Tourism

" Although the oceans are vital to our planet, we are recklessly destroying them with global warming, over-fishing, plastic waste and water pollution. If we continue to treat them this way, almost 50 percent of all living creatures in the oceans could be gone by 2100.*

Paul Buchwitz - Fund manager of "DWS Concept ESG Blue Economy"

A strong cooperation

Together with WWF Deutschland we accompany selected companies from the portfolio on the way to a more resource-conserving use of the oceans.[10]

 

WWF Germany

  • Blue Economy specific sustainability screening.
  • Expertise, experience and reputation of the non-profit organisation.
  • Setting targets for Blue Economy standards[1]

Cooperation

  • Selection of engagement candidates.
  • Determination of the respective transformation goals for selected companies.
  • Monitoring and assessment of progress on the basis of defined parameters.

DWS

  • The fund management specifically looks for investable companies in the Blue Economy.
  • In doing so, DWS's own ESG Investment Standards are taken into account.[2]
  • Implementation of the exposures

1. The basis of the cooperation is the Sustainable Blue Economy Finance Principles guide, which is produced by the Sustainable Blue Economy Finance Initiative within the framework of the United Nations Environment Programme Finance Initiative (UNEP FI) (https://www.unepfi.org/blue-finance/resources/).

2. The investment universe is defined, among other things, by environmental and social aspects, as well as the principles of good corporate governance.

The Engagement Approach of the Fund

The aim of the engagement: to actively drive and support companies on the path to transformation.

Data collection

Contacting companies & sending out the questionnaires.

Analysis

Evaluation of the feedback from the companies & selection of the engagement candidates.

Selection of the companies

Identification of the most important challenges of the company.

Recording company dialogue

Development of key performance indicators (KPIs) and agreement on targets and timelines.

Engagement & escalation steps

Exercise of voting rights and sale of company shares as leverage.

Sustainable Investments - ESG criteria complement the classic investment objectives

Sustainability criteria can complement the investment objectives of return, risk and liquidity, with environmental, social and governance-related aspects. The three sustainability criteria provide orientation. They can be understood as a guidance to sustainable investing.

* The following is merely an example and not an exhaustive list.

Environmental

Carbon footprint (CO2 emissions), Conservation of natural resources, Environmental protection

Social

Human rights, Labour standards, Consumer protection

Governance

Business ethics, Incentive structures, Competitive behaviour

Further information on the consideration of sustainability criteria >>

DWS Concept ESG Blue Economy LC Sustainability

DWS Concept ESG Blue Economy LC Sustainability

Equity Funds/Growth-oriented

ISIN: LU2306921490

Currency: EUR

Management Fee: 1.5000%

Go to Product Detail Page

Fund details of DWS Concept ESG Blue Economy LC

Shareclass

LC

Currency

EUR

ISIN

LU2306921490

Valor

110496538

Front-end Load

5,0%

Management Fee

1,500%

Earnings

Accumulation

Supplementary information on the investment policy

The investment policy is defined, among other things, by environmental and social aspects, as well as the principles of good corporate governance. The fund management applies DWS‘s own ESG filter „DWS ESG Investment Standard“ when selecting assets. At least 51% of the fund’s assets are invested in assets covered by the DWS ESG Investment Standard.

Share of sustainable investments according to SFDR

If a company has a positive contribution to at least one of the United Nations SDGs through its economic activity and does not violate any other goal, as well as adheres to principles of good governance, it is considered a sustainable investment.

Minimum share of sustainable investments[11] 15%[12]
  • minimum ecologically sustainable[13]
 2%[12]
  • minimum socially sustainable[14]
 1%[12]

Risks[15]

  • Market-, sector- and company-specific price volatility.

  • Possible exchange-rate risk.

  • Because of its composition or the techniques used by its managers, the fund is subject to heightened volatility. Consequently, unit prices may fluctuate sharply in either direction within short periods of time.

  • The value of the fund's shares may fall below the price at which the client originally bought them.

Sustainability topics

Feb 22, 2022 Equities

More diversity and inclusion in the sustainability portfolio

With the new Social Commitment Score, DWS is expanding its equity analysis with regard to social sustainability criteria.
Jan 25, 2021 Sustainability

Six questions for Christoph Schmidt: Why the DWS Dynamic Opportunities is now focused on ESG

One of DWS's most prominent multi-asset funds will operate as an ESG investment in the future. The changeover was the logical consequence of a path taken long ago, says its fund manager Christoph Schmidt
Dec 07, 2020 Sustainability

Climate change: turning it into an investment opportunity

Climate change poses many risks - but for companies and investors working to counter it, it could also offer a number of opportunities.

1. Source: Federal Ministry of Education and Research 2021, https://www.bmbf.de/bmbf/shareddocs/kurzmeldungen/de/2021/07_08/ozean-als-co2-speicher.html, accessed 10.05.2023.

2. Source: ARD Alpha 2021, https://www.ardalpha.de/wissen/umwelt/klima/klimawandel/ozeane-weltmeere-erwaermung-co2-klimawandel-100.html, accessed 10.05.2023.

3. Source: Umwelt Bundesamt 2023, https://www.umweltbundesamt.de/themen/wasser/gewaesser/meere/nutzung-belastungen/schifffahrt#schiffslarm, accessed 10.05.2023.

4. Source: European Commission 2021, https://eur-lex.europa.eu/legal-content/DE/TXT/?uri=COM%3A2021%3A240%3AFIN, accessed 10.10.2023

5. Source: WWF Germany 2022, https://www.wwf.de/themen-projekte/meere-kuesten/fischerei/ueberfischung, accessed 10.05.2023.

6. Source: WWF Germany 2022, https://www.wwf.de/themen-projekte/plastik/plastikkrise-bedrohung-ganzer-oekosysteme, accessed on 10.05.2023.

7. Source: German Climate Consortium 2019, https://www.deutsches-klima-konsortium.de/fileadmin/user_upload/pdfs/Publikationen_DKK/dkk-kdmmeeresspiegelbroschuere-web.pdf, accessed on 10.05.2023.

8. Source: OECD 2020, https://www.oecd-ilibrary.org/sites/bede6513-en/index.html?itemId=/content/publication/bede6513-en, accessed on 10.05.2023 World population 2020: 7.84 billion people.

9. Solution providers and companies in transition are defined by DWS as part of the investment process.

10. Details can be found in the DWS Concept ESG Blue Economy Engagement Report: https://www.go.dws.de/Engagement_Report.

11. The proportion of sustainable investments as defined in Article 2(17) SFDR in the portfolio is calculated in proportion to the economic activities of the issuers that qualify as sustainable.

12. These are minimum shares that do not necessarily add up to the total share.

13. “Ecologically sustainable investment” in line with Art. 2(17) SFDR means an investment in an economic activity that contributes to an environmental objective.

14. “Socially sustainable investment” in line with Art. 2(17) SFDR means an investment in an economic activity that contributes to a social objective.

15. Details are contained in the Prospectus.

*Forecasts are based on assumptions, estimates, opinions and hypothetical models or analyses that may prove to be inaccurate or incorrect.

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