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.

​

 

FIFA-Partners, 2014 vs 2015 

(as of 22 June 2015)

 

​dropped out 2015partner since 2015

​

​

 

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 Manage-

ment contacted all partners of the Inter-

national Federation of Association Foot-

ball (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 Con-

tinental 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, to-

gether 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 deman-

ded clarification from FIFA with regard to the situation in Qatar, and for the federa-

tion to act more sustainably. The res-

ponse 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)