On March 10, the SFDR Regulation came into force, requiring asset managers to provide information on the environmental, social and governance risks of their investments and their impact on society and the planet. Funds are classified into one of three categories, Articles 6, 8 or 9, depending on the sustainability objective.
- Article 6: the article of transparency, the prospectus must specify whether the fund integrates the risk of sustainability or not
- Article 8: products that promote environmental and social sustainability by integrating sustainability in a binding manner
- Article 9: impact funds that set themselves extra-financial objectives (sustainable investment)
The objective of the European SFDR regulation is to provide greater transparency and a grid for comparing the range of investment funds in terms of their environmental, governance and social (ESG) approach. The idea is that investors can more easily identify products and have extra-financial documentation with minimum standards at European level. It is true that a wide range of products has emerged in recent years on this investment theme, driven in particular by institutional investors who wanted to give a responsible dimension to their investments.
For the asset management companies that Crédit Mutuel Investment Managers federates, the introduction of the SFDR regulation is an opportunity to reaffirm their commitments and their strong involvement in responsible finance.
For example, Crédit Mutuel Asset Management has been involved in socially responsible management for more than 15 years by creating fund ranges, labelling and integrating ESG criteria in its funds. Today, its ambition is that the majority of its open-ended funds respect the criteria of article 8 or article 9 of the European SFDR regulation.
BLI - Banque de Luxembourg Investments has strengthened the place of ESG within its range of investment solutions. The classification provided by the SFDR regulation is part of this dynamic and formalizes existing practices. Several funds of the BLI range already meet the requirements of article 8 or 9 of the SFDR regulation. The objective is that the majority of the range will eventually tend towards these classifications.
Access the list of Crédit Mutuel Asset Management and BLI - Banque de Luxembourg Investments funds