DWS RREEF Global Real Estate Secs Fd has several promising attributes that may appeal to sustainability-focused investors.
The ESG risk of DWS RREEF Global Real Estate Secs Fd's holdings is comparable to its peers in the Real Estate Sector Equity category, thus earning an average Morningstar Sustainability Rating of 3 globes. Funds in the same category rated 4 or 5 globes tend to hold securities less exposed to ESG risk. ESG risk measures the degree to which material environmental, social, and governance issues, such as climate change and inequalities, could affect valuations. ESG risk differs from impact, which is about driving positive environmental and social outcomes for society’s benefit.
DWS RREEF Global Real Estate Secs Fd has a Carbon Risk Score of 9.91, indicating portfolio companies face low carbon-related risks in the transition to a low-carbon economy. Currently, the fund's involvement in fossil fuels is negligible, and compares favorably with 0.08% for its average peer. No companies held by DWS RREEF Global Real Estate Secs Fd are recognized as being involved in controversies at a high or severe level. From bribery and corruption to workplace discrimination and environmental incidents, controversies can have significant financial repercussions, ranging from legal penalties to consumer boycotts. In addition, controversies can damage the reputation of both companies themselves and their shareholders.
One potential issue for a sustainability-focused investor is that DWS RREEF Global Real Estate Secs Fd doesn’t have an ESG-focused mandate. Funds with an ESG-focused mandate would have a higher probability to drive positive ESG outcomes.