Sustainable societies are built by creating investment funds that are both profitable and responsible. At MAPFRE, we invest in assets that meet ESG (Environmental, Social and Governance) criteria, making our investment socially responsible. In practice, this model means that we can help build a more sustainable world without sacrificing long-term profitability.
Socially Responsible Investment (SRI) is a growing trend worldwide. In 2017, we signed the United Nations Principles for Responsible Investment (PRI), meaning that, for over three years, we have been designing new products for our clients—mutual funds in particular—that satisfy these principles and comply with the ESG criteria. This course of action is in keeping with our purpose and obligation to protect our clients’ savings and investments. In order to do this, we apply prudential criteria for investment and seek long-term value creation.
How do we apply the SRI principles?
We have taken actions that follow the guidelines set out in the United Nations 2030 Agenda. In 2019, we made a commitment not to invest in electricity companies that earn over 30 percent of their revenue from coal-produced energy. As a result with this commitment, we do not invest in companies that have coal-fired energy expansion plans of more than 3 GigaWatts (GW). Neither in mining companies that obtain 30 percent or more of their revenue from the mining or production of more than 20 million tons of thermal coal per year.
In collaboration with the University of Siena (Italy), we have also studied the impact of mutual fund portfolios on the Sustainable Development Goals (SDGs). The results of this research have already been applied to responsible mutual funds.
In 2019, we also joined the board of directors of SpainSIF, a platform that promotes responsible investment in Spain.
We extend the philosophy of socially responsible investment to the Group’s entire balance sheet. MAPFRE has its own ESG analysis framework that is periodically reviewed in this area. Currently, around 90 percent of the assets in our portfolio have high or very high scores in their ESG measurements.
Our MAPFRE AM management firm is tasked with applying the socially responsible investing principles and has three specific funds:
- Responsible inclusion: is an equity fund that invests in companies committed to the inclusion of people with disabilities, and it combines the pursuit of financial profitability with promoting an improvement in society. It has been listed in the 2019 United Nations Global Compact report as an example of best practice.
- Responsible capital: the objective of this fund is to favor those companies and entities that have a strategy focused on the monitoring of ESG criteria.
- MAPFRE Good Governance: is a global equity fund that includes companies with good corporate governance whose assets are temporarily undervalued by the market. Two studies conducted by the University of Siena and the Cranfield School of Management have concluded that investment in socially responsible and well-managed companies is more profitable in the long-term.
Our team of experts regularly analyzes developments in our mutual funds and continuously monitors any controversies or risks relating to ESG that may arise, in order to secure our clients’ investments.