Website product disclosure for financial products that have sustainable investments as their objective
For financial products that have sustainable investments as their objective, financial market participants shall publish the information referred to in Article 10(1) of Regulation (EU) 2019/2088 and Articles 38 to 49 of this Regulation in the following order and made up of all of the following sections titled:
(a)
‘Summary’;
(b)
‘No significant harm to the sustainable investment objective’;
(c)
‘Sustainable investment objective of the financial product’;
(d)
‘Investment strategy’;
(e)
‘Proportion of investments’;
(f)
‘Monitoring of sustainable investment objective’;
(g)
‘Methodologies’;
(h)
‘Data sources and processing’;
(i)
‘Limitations to methodologies and data’;
(j)
‘Due diligence’;
(k)
‘Engagement policies’;
(l)
‘Attainment of the sustainable investment objective’.
Website section ‘Summary’ for financial products that have sustainable investment as their objective
1. In the website section ‘Summary’ referred to in Article 37, point (a), financial market participants shall summarise all the information contained in the different sections referred to in that Article 37about the financial products that have sustainable investment as their objective. The summary section shall have a maximum length of two sides of A4-sized paper when printed.
2. The website section ‘Summary’ referred to in Article 37, point (a), shall be provided in at least the following languages:
(a)
one of the official languages of the home Member State and, where different and where the financial product is made available in more than one Member State, in an additional language customary in the sphere of international finance;
(b)
where the financial product is made available in a host Member State, one of the official languages of that host Member State.
Website section ‘No significant harm to the sustainable investment objective’ for financial products that have sustainable investment as their objective
In the website section ‘No significant harm to the sustainable investment objective’ referred to in Article 37, point (b), financial market participants shall explain whether and why the investments of the financial product do not significantly harm any of the sustainable investment objectives, and provide all of the following information:
(a)
how the indicators for adverse impacts in Table 1 of Annex I, and any relevant indicators in Tables 2 and 3 of that Annex, are taken into account;
(b)
whether the sustainable investment is aligned with the OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights, including the principles and rights set out in the eight fundamental conventions identified in the Declaration of the International Labour Organisation on Fundamental Principles and Rights at Work and the International Bill of Human Rights.
Website section ‘Sustainable investment objective of the financial product’ for financial products that have sustainable investment as their objective
In the website section ‘Sustainable investment objective of the financial product’ referred to in Article 37, point (c), financial market participants shall describe the sustainable investment objective of the financial product.
Website section ‘Investment strategy’ for financial products that have sustainable investment as their objective
In the website section ‘Investment strategy’ referred to in Article 37, point (d), financial market participants shall describe all of the following:
(a)
the investment strategy used to attain the sustainable investment objective;
(b)
the policy to assess good governance practices of the investee companies, including with respect to sound management structures, employee relations, remuneration of staff and tax compliance.
Website section ‘Proportion of investments’ for financial products that have sustainable investment as their objective
In the website section ‘Proportion of investments’ referred to in Article 37, point (e), financial market participants shall insert the information referred to in the section ‘What is the asset allocation and the minimum share of sustainable investments?’ in the template set out in Annex III to this Regulation and shall distinguish between direct exposures in investee entities and all other types of exposures to those entities.
Website section ‘Monitoring of the sustainable investment objective’ for financial products that have sustainable investment as their objective
In the website section ‘Monitoring of the sustainable investment objective’ referred to in Article 37, point (f), financial market participants shall describe how the sustainable investment objective and the sustainability indicators used to measure the attainment of the sustainable investment objective are monitored throughout the lifecycle of the financial product and the related internal or external control mechanisms.
Website section ‘Methodologies’ for financial products that have sustainable investment as their objective
In the website section ‘Methodologies’ referred to in Article 37, point (g), financial market participants shall describe the methodologies used to measure the attainment of the sustainable investment objective and how the sustainability indicators to measure the attainment of that sustainable investment objective are used.
Website section ‘Data sources and processing’ for financial products that have sustainable investment as their objective
In the website section ‘Data sources and processing’ referred to in Article 37, point (h), financial market participants shall describe all of the following:
(a)
the data sources used to attain the sustainable investment objective of the financial product;
(b)
the measures taken to ensure data quality;
(c)
how data are processed;
(d)
the proportion of data that are estimated.
Website section ‘Limitation to methodologies and data’ for financial products that have sustainable investment as their objective
In the website section ‘Limitation to methodologies and data’ referred to in Article 37, point (i), financial market participants shall describe all of the following:
(a)
any limitations to the methodologies referred to in Article 37, point (g), and the data sources referred to in Article 37, point (h);
(b)
why such limitations do not affect the attainment of the sustainable investment objective.
Website section ‘Due diligence’ for financial products that have sustainable investment as their objective
In the website section ‘Due diligence’ referred to in Article 37, point (j), financial market participants shall describe the due diligence carried out on the underlying assets of the financial product, including the internal and external controls on that due diligence.
Website section ‘Engagement policies’ for financial products that have sustainable investment as their objective
In the website section ‘Engagement policies’ referred to in Article 37, point (k), financial market participants shall describe the engagement policies implemented where engagement is part of the sustainable investment objective, including any management procedures applicable to sustainability-related controversies in investee companies.
Website section ‘Attainment of the sustainable investment objective’ for financial products that have sustainable investment as their objective
1. In the website section ‘Attainment of the sustainable investment objective’ referred to in Article 37, point (l), financial market participants shall describe all of the following:
(a)
for financial products that have sustainable investment as their objective and for which an index has been designated as a reference benchmark, how that index is aligned with the sustainable investment objective of the financial product, including the input data, the methodologies used to select those data, the rebalancing methodologies and how the index is calculated;
(b)
for financial products that have a reduction in carbon emissions as their objective, a statement that the reference benchmark qualifies as an EU Climate Transition Benchmark or an EU Paris-aligned Benchmark as defined in Article 3, points (23a) and (23b), of Regulation (EU) 2016/1011, and a hyperlink to where the methodology used for the calculation of those benchmarks can be found.
2. By way of derogation from paragraph 1, point (a), where the information referred to in that point is published on the website of the administrator of the reference benchmark, a hyperlink shall be provided to that information.
3. By way of derogation from paragraph 1, point (b), where no EU Climate Transition Benchmark or EU Paris-aligned Benchmark as defined in in Article 3, points (23a) and (23b), of Regulation (EU) 2016/1011 is available, the website section ‘Attainment of the sustainable investment objective’ referred to in Article 38, point (l), of this Regulation shall mention that fact and explain how the continued effort of attaining the objective of reducing carbon emissions is ensured in view of achieving the objectives of the Paris Agreement. Financial market participants shall explain the extent to which the financial product complies with the methodological requirements set out in Delegated Regulation (EU) 2020/1818.
Source: EUR-Lex (Publications Office of the EU), © European Union, reuse permitted under Commission Decision 2011/833/EU.
