We believe that sustainability criteria are part of the risks and opportunities faced by companies in today's world and therefore the integration of these aspects into their business strategy and corporate culture is not only a positive action, but a necessary one.
Sustainable investment means an investment in an economic activity that contributes to:
provided that such investments do not significantly harm any of those objectives and that the investee companies follow good governance practices, in particular with respect to sound management structures, employee relations, remuneration of staff and tax compliance.
Further to the adoption of the 2015 Paris Agreement on climate change, the Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability-related disclosure requirements in the financial services sector ("SFDR") is part of the European Union Action Plan for Financial Sustainable Growth released on 2018 with the aim to:
The main objective of SFDR is to establish harmonised rules for sustainability-related disclosures and contains transparency obligations on a product and entity level applying, among others, to UCITS and AIF SICAVs and their Management Companies, with the aim to enhance transparency on three main topics:
For further information about the approach adopted by Renta 4 LUXEMBOURG S.A. with reference to sustainability risks and principal adverse impacts of investment decisions on sustainability factors, please refer to the following sections: