Sustainable Finance Disclosure Regulation (SFDR)
Regulation (EU) 2019/2088 (Sustainable Finance Disclosure Regulation -SFDR) aims to provide greater transparency about the sustainability of financial products, in order to direct private funds towards sustainable investments, while preventing “green washing”. Its gradual implementation began in March 2021.
What is SFDR
Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 requires sustainability-related disclosures in the financial services sector (known as Sustainable Finance Disclosure Regulation - SFDR).
The purpose of the Regulation is to establish harmonised rules for financial market participants and financial advisers on transparency with regard to the integration of sustainability risks and the consideration of adverse sustainability impacts in investment decision-making processes and the provision of sustainability-related information with respect to financial products.
What is Sustainability Risk
Sustainability Risk (or ESG risk) means an environmental or social or governance event or condition that, if it occurs, could cause an actual or potential material negative impact on the value of the investment.
Sustainability risks are taken into consideration during the investment decision-making processes of Piraeus Bank or the Investment Manager in the event of an assignment, as well as in the provision of investment advice and are incorporated into the relevant ESG Investment Policy.
Sustainability risks may be considered as separate risks or as drivers that have an impact on other portfolio risks. The purpose of integrating sustainability risks into investment decision-making processes is to identify the occurrences of such risks in a timely manner and to take appropriate measures to mitigate the impact on investments or the portfolio as a whole.
Key risk indicators can be used to assess sustainability risks. Key risk indicators can be of quantitative and / or qualitative nature, based on sustainability factors (ESG) and measure the adverse impacts on the monitored data.