At second glance
To Erste Asset Management, engagement is an ongoing process. Together with our
partners, we continuously monitor issues that we raised at one point in time in the past.
In ERSTE RESPONSIBLE RETURN – The ESG Letter we present important progress made
in and by engagement projects.
Sponsoring of global sporting events
It had been clear for a while that the award procedures for largescale sports events were of a dubious nature.
But the importance of championships used to outshine any dark suspicion. In February 2014 the Olympic Games
were held in Sochi and, once again, they strongly suggested that neither the awarding nor the preparation nor
the implementation of the event were being done entirely by the book. This was later highlighted again by the
protests during the World Cup Final in Brazil.
In order to learn how the sponsors of such events saw the way the organisers were handling them, Erste Asset
Management contacted all partners of the International Federation of Association Football (FIFA) in April 2014.
Some of the sponsors were prepared to enter into a dialogue, whereas others refused to do so. Back then, all
sponsors except Continental regarded the responsibility as resting with the host countries and FIFA.
However, Erste Asset Management realised during the talks that this was an issue the companies preferred not
to touch. As a result of our dialogue, together with our research partners we developed an indicator that measures
sustainable sponsoring and takes it into account in our sustainability rating.
Shortly after our talks and at a time when the media focus was becoming intense, Adidas, Sony, and Visa publicly demanded clarification from FIFA with regard to the situation in Qatar, and for the federation to act more
sustainably. The response from FIFA apparently failed to satisfy Sony and Emirates, seeing as they pulled out
as sponsors in November 2014.
Since the beginning of this year the chain of slip-ups by FIFA has not come to an end. At first, word got out in
March that the World Cup Final of 2022 in Qatar was scheduled for the time around Christmas, and then in May
eleven FIFA officials were arrested. Finally, in June FIFA President Sepp Blatter stepped down.
The sponsoring of large sports events is not just the business of FIFA, sponsors, and sustainable investors
anymore, but traditional investors, too, have recognised the reputation risk. For example, at the annual general
meeting the Adidas shareholders demanded the termination of the contracts with FIFA.
(Richard Boulanger)