What is the aim of the new European SFDR "Sustainable Finance Disclosure Regulation"?
As part of the European Commission's March 2018 Action Plan on Financing Sustainable Growth (the "Action Plan"), the so-called Sustainable Finance Disclosure Regulation (EU) 2019/2088 (SFDR) aims to provide greater transparency on the degree of sustainability of financial products in order to steer end investments towards sustainable investments.
The SFDR regulation defines sustainable investment as "an investment in an economic activity that contributes to an environmental objective, or an investment in an economic activity that contributes to a social objective, provided that the objective does not cause significant harm to either of these objectives and that the companies in which the investments are made apply good governance practices."
The objective is to make the sustainability factors of financial products easily understandable and comparable by investors by classifying products into three distinct categories, depending on the degree of importance of the sustainability criterion:
Article 6: standard financial products that may include extra-financial data, but do not commit to a sustainability objective.
Article 8 or 9: so-called sustainable financial products with two degrees of ambition in terms of sustainability.
Art 8 investment funds promote environmental, social and/or governance characteristics and exclude sectors that are particularly harmful to the environment and society.
Art 9 investment funds use ESG indicators but focus on companies that have a positive impact. These investment funds aim to achieve one or more of the Sustainable Development Goals (SDGs: 17 goals established by the United Nations member states).
As part of the European Commission's March 2018 Action Plan on Financing Sustainable Growth (the "Action Plan"), the so-called Sustainable Finance Disclosure Regulation (EU) 2019/2088 (SFDR) aims to provide greater transparency on the degree of sustainability of financial products in order to steer end investments towards sustainable investments.
The SFDR regulation defines sustainable investment as "an investment in an economic activity that contributes to an environmental objective, or an investment in an economic activity that contributes to a social objective, provided that the objective does not cause significant harm to either of these objectives and that the companies in which the investments are made apply good governance practices."
The objective is to make the sustainability factors of financial products easily understandable and comparable by investors by classifying products into three distinct categories, depending on the degree of importance of the sustainability criterion:
Article 6: standard financial products that may include extra-financial data, but do not commit to a sustainability objective.
Article 8 or 9: so-called sustainable financial products with two degrees of ambition in terms of sustainability.
Art 8 investment funds promote environmental, social and/or governance characteristics and exclude sectors that are particularly harmful to the environment and society.
Art 9 investment funds use ESG indicators but focus on companies that have a positive impact. These investment funds aim to achieve one or more of the Sustainable Development Goals (SDGs: 17 goals established by the United Nations member states).
Documentations
What is sustainable or responsible investment?
Sustainable or responsible investment aims to integrate environmental, social and governance (ESG) criteria into investment decisions in order to better manage risks and generate sustainable performance over the long term.
What is the aim of the new European SFDR "Sustainable Finance Disclosure Regulation"?
"The Sustainable Finance Disclosure Regulation (SFDR) aims to provide greater transparency on the degree of sustainability of financial products in order to direct end investments towards sustainable investments.
How do you express your sustainability preferences?
As an investor, you will be able to express your sustainability preferences by completing a new questionnaire.
You wish to give another dimension to your investments
Major environmental and societal issues are driving the emergence of new business trends and new investment opportunities. Investing in a sustainable manner allows us to seek financial performance while making a positive contribution to the environment and/or society.
What are the main themes of sustainable investment?
Sustainable investment solutions have grown significantly in recent years, driven by regulatory reforms and changing investor preferences.
What are the main lines of our sustainable management offer?
Our fund selection will meet sustainability requirements based on SFDR regulations and will take into consideration sustainability PAIs.
Points of attention for the investor
If you express sustainability preferences, this may have important consequences for your asset allocation.