The Sustainable Finance Disclosure Regulation (SFDR) will enter into force in the European Union on 10 March 2021(1). The objective is to establish harmonised transparency rules regarding responsible finance commitments. It will initially apply to management companies before being extended to distributors and will require them to propose solutions that are consistent with the stated interests of their customers.

With regard to the funds offered by management companies, this now provides a very precise framework for all sustainability-related disclosures.

By default, Article 6 of the SFDR requires that all funds specify in their prospectus whether or not ESG risks have been taken into consideration (2) and whether or not the impact on their return has been assessed (2).

Two categories will require the disclosure of specific information:

  • Article 8 : financial products promoting environmental or social characteristics (3) but without significant commitments.
  • Article 9 : financial products mentioning significant sustainable investment objectives (3) with a measurable impact.

Crédit Mutuel Asset Management, BLI-Banque de Luxembourg Investments, CIC Private Debt and Cigogne Management are conscious of their responsibility and commitments in this regard and are taking all necessary measures to comply with this new regulation.

We will be sure to provide you with regular updates. The Crédit Mutuel Investment Managers sales teams are available to assist you in this matter.

(1) As things stand, the application date for the RTS (Regulatory Technical Standards) has been pushed back to 1 January 2022.
(2) Where such risks are not taken into consideration, a clear explanation must be provided.
(3) Provided that the companies in which the investments are made follow good governance practices.