" "Our strength lies in implementing the necessary technology in a flexible and robust way. Turning something into a solid methodology that is fully integrated into portfolio management systems represents a real achievement."

Carsten Keil Head of Data Science Responsible Investments

The DWS ESG Engine was developed in direct response to growing data and analytic expertise in the sphere of responsible investing. As a proprietary software system that combines the different perspectives and approaches of five leading external data providers, it has become the centerpiece of our commitment to integrating ESG into our investment process and our Active and Passive portfolios.

The power of objectivity

The first basic motivation that compels investors to consider ESG issues when choosing the sectors, companies and projects in which they invest revolves around strictly ethical concerns. The second revolves around a combination of investment opportunity and risk management.


Delivering value to the client

The ESG Engine is fully integrated into our overarching investment process. The huge array of data it produces has been successfully incorporated into our Aladdin next-generation research system, meaning that all of our investment managers and analysts – irrespective of whether they are responsible for dedicated ESG strategies or “classical” portfolios – can check ESG risk exposures at any time.

This reflects our belief that there is no “one size fits all” approach to responsible investing. Although we set our ESG Investment Standard for our dedicated ESG funds, the assessments produced by the ESG Engine are interpreted in light of a client’s preferences. We believe this high degree of coverage and flexibility is essential to devising the bespoke and robust ESG solutions that investors increasingly want.

How to build ESG solutions with our ESG engine

THE IMPORTANCE OF A 360º VIEW

Screening is the world’s most popular ESG investing methodology. Traditionally, it is used to exclude certain sectors, companies or practices on the basis of specific criteria.The raison d’être of any such process for investors is to forego returns from businesses they deem controversial.

Uniquely, the ESG Engine’s screening procedures draws on the expertise of five leading external providers of ESG data: ISS-ESG, MSCI, ESG Book, Morningstar Sustainalytics and S&P Trucost as well as publicly available sources and proprietary DWS research.

  • ISS-ESG

  • MSCI

  • Morningstar Sustainalytics

  • S&P TruCost

  • ESG Book

Automated Analysis of Multiple ESG Facets

Controversial Sectors

International Norms

Best-in-Class ESG Assessments

CO2 and Climate

Flexible ESG Investment Solutions for Clients

Dedicated ESG Solutions

Dedicated ESG Solutions

Active

Passive

ESG Integration

ESG Integration

Issuer research

Portfolio scoring

Risk and opportunities

CIO View