Q&A with Franz-Paul Horn, project manager and sustainability expert at Security KAG
| How are the social tranches structured to provide the best possible support for sustainable projects?
An investment in the Social Tranches of our Apollo-Nachhaltig–fund-range directly supports selected environmental, social and scientific projects that contribute to the achievement of the Sustainable Development Goals (SDGs) of the United Nations. Through these tranches, Security KAG acts with an increased sense of social responsibility by ensuring that a portion of the management fees is used directly to support these selected projects. This investment approach not only generates financial returns, but also advocates a more conscious form of investing. Since a portion of the management fees goes directly to these projects, investors can not only gain financial benefits but also actively contribute to projects they care about, thus bridging the gap between financial returns and social impact.
| What are the costs for investors?
Our social tranches offer private and institutional investors the opportunity to make an additional contribution to sustainable fund investments. If investors opt for the social tranches marked with “S”, one basis point of the management fee charged goes into a funding pot dedicated exclusively to supporting national as well as international projects with a social, environmental and/or scientific component. Through the project budget that is created and can grow automatically with new investments and positive performance, we can actively promote solutions to ecological and social problems.
Additionally, we commit to doubling this amount for all public tranches, increasing the impact of the investments and catalyzing a greater positive influence on these important projects.
| Which factors does Security KAG consider when selecting the projects to be supported?
The projects are selected and reviewed by independent experts from Security KAG to ensure their alignment with the SDGs. In the selection process, preference is given to small organizations and science-based concepts. The goal is to support innovative and scalable “lighthouse” projects that make a difference through their work and provide solutions to relevant problems. In doing so, we use the funds as efficiently and effectively as possible to help close funding gaps in an unbureaucratic manner.
| Which projects have already been successfully implemented? Which projects are coming soon?
Through the social tranches, we were already able to generate a sum of around 60.000 € in 2023. The money is currently invested in various carefully selected projects, which have been subjected to strict due diligence in advance.
With these parts of the management fees, we support for example local Austrian projects like the re-establishment of the grayling fish in Lower Austria, which is an endangered fish species of great importance for biodiversity in Austria’s waters. With this measure we contributed to SDG 14 (life below water). Through our social tranches, we also provide funding for the organization “Hobby Lobby”, which encourages socio-economically disadvantaged children and young people in the development and unfolding of their potential. This is intended to contribute directly to the fourth goal of the SDGs, which is to ensure inclusive and equitable quality education and promote lifelong learning for all.
On an international level, we support international initiatives like a rainforest restoration in Costa Rica and the development of an agroforestry system in Brazil to create food security as well as CO2 fixation.
| How big is the actual impact of the funding provided through the social tranches?
By directing resources towards these carefully selected initiatives, we aim to make a substantial, measurable difference in addressing societal and environmental issues. The focus is on funding initiatives that not only show potential but have demonstrated effectiveness, contributing significantly to the realization of SDGs, and ultimately, making a tangible impact on the world’s most pressing challenges.
| about
Franz-Paul Horn has a degree in biology and has been involved in ecology throughout his career. He has been sustainability manager of Security KAG since 2021. As an expert he overlooks the social tranches project also launched in 2021.
Security Kapitalanlage AG is part of the GRAWE Group and, with over thirty years of history in Austria, is a reliable and innovative partner for investment solutions. Security Kapitalanlage AG works with the know-how of experts according to strictly scientific principles and manages fund assets of just under seven billion euros, of which around one third is attributable to certified sustainable assets.
| All opinions expressed are those of the author and/or quoted sources. investESG.eu is an independent and neutral platform dedicated to generating debate around ESG investing topics.
