In 2018, the EU launched an action plan to increase the share of sustainable investments, promote long-termism and make it clearer what is sustainable, with the overall goal that the EU should be carbon dioxide neutral by 2050. The EU has issued several regulations to strengthen the action plan. One of these is the Sustainable Finance Disclosure Regulation (SFDR), launched in March 2021.
The main purpose of the Disclosure Regulation is to increase transparency in sustainability issues and increase comparability between financial market participants regarding the integration of sustainability risks and consideration of negative consequences for sustainable development in their processes.
The EU Action plan is a major policy objective that aims to leverage financial markets to support sustainable economic growth in Europe, while managing risks stemming from environmental, social and governance (ESG) issues. It has three core objectives:
- Reorient capital flows towards a more sustainable economy
- Mainstream sustainability into risk management
- Foster transparency and long-termism
SFDR requires fund managers to assess and disclose how sustainability risks are considered in their investment processes, and how they consider investment decisions that might result in negative effects on sustainability factors, known as Principal Adverse Impacts (PAIs).
Saminvest is not a fund manager and, thus, not directly covered by the SFDR. Since it is part of our assignment to manage the fund assets in an exemplary manner through responsible investments and responsible ownership and to report how that goal has been achieved, we will in the coming years develop our reporting, primarily on the website, in line with the regulation.
According to the SFDR, sustainability risk means “environmental, social or governance-related events or conditions which, if realized, could have a negative significant impact on the value of the investment”. Saminvest’s way of dealing with negative consequences on sustainable development is based, among other things, on the conventions listed in the directive from our owners. It is built on commitments and initiatives, such as:
- OECD Guidelines for Multinational Enterprises and Corporate Governance
- United Nations Global Compact (UNGC)
- The ILO’s core conventions
- UN Guiding Principles on Business and Human Rights (UNGP)
Saminvest integrate sustainability into management by taking sustainability factors into account in analysis and decision-making processes. Learn more about Saminvest’s sustainability work in the investment process here:
We do not stipulate whether a fund should declare itself article 6, 8 or 9. However we do focus on each fund fulfilling its respective disclosure responsibilities in a professional manner.