DWS RREEF Real Estate Securities Fund has several promising attributes that may appeal to sustainability-focused investors.
The ESG risk of DWS RREEF Real Estate Securities Fund'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 Real Estate Securities Fund has a Carbon Risk Score of 9.73, 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 0.21% for its average peer. The fund has no exposure to high or severe controversies. From bribery and corruption to workplace discrimination and environmental incidents, controversies are incidents that may negatively affect stakeholders, the environment, or the company’s operations.
One potential issue for a sustainability-focused investor is that DWS RREEF Real Estate Securities Fund doesn’t have an ESG-focused mandate. Funds with an ESG-focused mandate are more likely to align with the expectations of an investor who cares about sustainability issues.