In accordance with Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial services sector (“SFDR”), we are required to provide you with information on how we integrate sustainability risks in our investment decision and advisory processes.
Sustainability risks mean specific Environmental, Social or Governance (“ESG”) events or conditions that can cause a negative or a positive impact on the value of the investment.
We are committed to sustainable and responsible investments and to supporting sustainable financial markets. As a group aiming to produce financial returns for our clients, we believe that to obtain a rounded view of investments, of their risks and opportunities we need to consider ESG issues. While it is not always possible to directly link ESG considerations to financial value, we believe ESG performance can provide a proxy for the quality of management and for the capacity of the investee to deliver sustainable competitive advantage.
To better drive the ESG integration process, EFG Group built an ESG analysis team that collaborates with the investment teams worldwide. This team structures and maintains bespoke tools and analyses that help monitor sustainability risk in the investments and products managed by us and cooperates with other teams to define processes that are consistent across the group.
We decided not to consider the adverse impact of investment decisions on sustainability factors due to the late release of the final Regulatory Technical Standards issued by the Joint Committee of European Supervisory Authorities (JC 2021 03) and we plan to revisit this decision by the year end.