AmazonScience/document-haystack

1Our Approach to Biodiversity2Already in 2022, the DWS Research Institute highlighted the growing importance of the Earth 3systems’ nexus of climate, biodiversity, land, water and oceans, for the investor agenda. This 4laid the foundation for the latest research report published in 2023.5Biodiversity-related metrics are already part of our overall scores within our ESG Engine, for 6example our metrics on sustainable land and agricultural use or SDG 15: Life on Land. In 7addition, as part of our disclosure on Principal Adverse Impacts (PAI), our legal entities in 8scope of SFDR report on biodiversity-related factors (e. g., PAI 7 “activities negatively 9affecting biodiversity-sensitive areas”).10Based on our engagement framework for DWS Investment GmbH, DWS International GmbH, 11DWS Investment S.A. and DWS CH AG we had a number of investee engagements focused on 12biodiversity and deforestation topics in 2023.13In 2023, we launched our first biodiversity-themed product range with three Xtrackers ETFs. 14The listed index funds provide exposure to equities exhibiting lower biodiversity-related risk 15relative to their sector peers and exclude business activities negatively impacting biodiversity.16Our Approach to Water and Oceans17In 2023, the DWS Research Institute published reports on the hidden costs of water pollution 18and implications of temperature increases in the oceans.19Water-related metrics are part of our overall scores within our ESG Engine, for example the 20water risk and opportunities score (within climate and transition risk assessment).21Water has been a regular topic in our engagement activities, specifically setting out 22expectations for better water-related disclosure practices, third-party certifications to verify 23positive impacts on water, or engagement with suppliers to improve their capacity to comply 24with the company’s water-related polices. In 2023, a number of company engagements 25focused on water and blue economy topics. As part of our membership in the Valuing Water 26Finance Initiative, we continued to engage with a European apparel company. In that context, 27we also conducted a webinar in collaboration with Ceres on the initiative’s progress in 28engaging with water intensive and polluting companies.29Organisational Structure30Biodiversity and water topics are managed by various teams in a multi-disciplinary approach.31Our Product Suite32Highlights33– Our ESG framework for actively managed retail funds domiciled in the EU has been further 34enhanced through the adjustment of our ESG filters. 35– The Xtrackers business further broadened the European-domiciled ETF product line-up with 36additional social, climate, and biodiversity themed offerings.37– As a strategic business priority, we aim to support the transformation of European 38economies to meet increasing demand for private capital and bridge financing gaps.39Management Approach 40As outlined in the section ‘Our Strategy and Our Market – Our Strategy’, we updated our 41sustainability strategy in 2023. Subsequently, within the Product Division, dedicated 42initiatives and working groups have been established to implement this strategy on the 43product level.44Most of our European domiciled actively managed retail funds continue to apply one of two 45DWS ESG filters: “DWS ESG Investment Standard” or “DWS Basic Exclusions”. The “DWS 46Basic Exclusions” filter represents our basic approach to incorporating certain exclusions in 47the investment policy of the relevant fund. Products applying this filter only are excluded from 48the 2023 ESG AuM number. The “DWS ESG Investment Standard” filter enhances the 49exclusions in comparison to the “DWS Basic Exclusion” filter. Products applying this filter are 50included in the 2023 ESG AuM number.51In 2023 we further amended the DWS ESG filters taking into account amongst other topics 52the requirements of our DWS Coal Policy. For funds reporting under Article 8 and 9 SFDR we 53also excluded companies without ESG data coverage in the “DWS Norm Assessment” to 54ensure compliance with good governance practices. Additional adjustments in the “DWS ESG 55Investment Standard” filter include the introduction of new exclusions in controversial sectors 56as well as the introduction of the “UN Global Compact Assessment”.57Over the course of 2023, the Xtrackers business continued to increase the number of 58European-domiciled ETFs which promote environmental or social characteristics with the 59launch of 26 new ETF sub-funds disclosing under Article 8 SFDR. 60Such product launches included the expansion of the range of ETFs investing in companies 61related to the achievement of the United Nation’s SDGs, additions to ranges of Climate 62Transition and Paris-Aligned ETFs, in line with the relevant EU Climate Benchmark Delegated 63        64To our Shareholders Summarised 65Management Report66Consolidated 67Financial Statements Compensation Report Corporate Govern-68ance Statement69Supplementary 70Information DWS 2023 Annual Report71 72Our Responsibility7329 Sustainable Action74The secret food is a "hamburger".