Sustainable Finance Disclosure Regulation
On 10 March 2021, a new EU regulation for sustainable investments came into force. The aim of the Sustainable Finance Disclosure Regulation (SFDR) is to increase transparency for sustainability in the financial market and to prevent financial market participants from greenwashing. Under the regulation, financial-market participants are required to report on the integration of ESG risks and the consideration of the principal adverse sustainability impacts on sustainable development in the investment process of products. Participants are also required to report on the provision of ESG related disclosures for financial products. The EU regulation primarily affects financial market participants and financial advisors. The regulation imposes certain requirements both at the company level and at the product level.
Product level
Under the SFDR, financial market participants and financial advisors are required to publish product information related to sustainability for environmental, social and governance (ESG) related products and non-ESG products. The regulation requires entities to classify the products or advice they offer in the following three categories: Article 6, Article 8 and Article 9. The definitions of these three classifications are as follows:
• Article 6 (grey): Financial products that do not integrate or take into account sustainability in the investment process.
• Article 8 (light green): Financial products that promote sustainability in the investment process. This means that the product promotes environmental and social characteristics and that the investment object complies with good governance practices.
• Article 9 (dark green): Financial products with sustainable investment as an objective in the investment process. This means that the product makes investments in an economic activity that contributes to environmental or social objectives and observes the ‘Do no significant harm (DNSH)’ principle. It is also assumed that the investment objective of this product complies with good governance practices.
SFDR classification of Fondita’s funds
• Article 8:
• Article 9:
SFDR classification: article 8, light green
The funds promote, among other things, environmental and social aspects. As part of the funds’ investment process, ESG issues are taken into account in investment decisions. Investment decisions take into account environmental and social issues and the risks associated with them. The funds invest in companies that follow good governance practices. More information in our Prospectus.
SFDR classification: article 9, dark green Fondita Healthcare
This global healthcare fund has a social sustainability investment objective. The fund holdings economic activities work toward supporting several UN SDG goals, mainly the fund aims to improve Health and Wellbeing (UN SDG 3) and Gender Equality (SDG 5). The fund invests in companies that address current and unmet medical needs and provide access to medicine and medical care. This is achived by investing in companies active in innovation, production and distribution of medicines and healthcare equipment, tools and supplies as well as diagnostics and healthcare services. Operationally the companies act in a socially and environmentally responsible way. The fund emphasizes an external social sustainability objective that aims for improved access to medicine and an internal social objective of improved diversity, inclusion and equality. The environmental objective targets CO2 neutrality.The companies we invest in do not operate in sectors stated as unsustainable according to Fonditas Responsible Investment Policy. The companies’ activities are in-line with UN Global Compact criteria and OECD guidelines for multinational enterprises regarding human rights, labour, environment and anti-corruption and they follow good governance practices. Furthermore, the fund does not accept any breaches to the Do No Significant Harm Principle (EU Taxonomy). More information in our Prospectus.
SFDR classification: article 9, dark green Fondita Sustainable World
The objective of Fondita Sustainable World is sustainable investment. This objective is primarily achieved through the fund’s strategy of investing only in companies that enable, through their products or services, reduced CO2 emissions in accordance with SFDR article 9.3 and/or more efficient use of natural resources. These are the fund’s two focus areas. In addition, the fund excludes all companies active within fossil energy sources. The emissions of the holding (scope 1 & 2) are monitored regularly, and the holdings must have a clear strategy to reduce emissions. We also require the companies in which the fund invests to act responsibly in terms of their own environmental impact and social responsibility. The fund invests in companies that follow good governance practices. More information in our Prospectus.
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