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Sustainable Finance Disclosure Regulation (SFDR)

On 1 January 2023, parts of the EU’s regulatory framework for sustainability reporting in funds entered into force. The regulation is part of the European Commission’s action plan for financing sustainable economic growth.

The purpose of the action plan and the regulatory framework is to direct capital towards sustainable activities that contribute to the transition and help achieve the objectives of the Paris Agreement. 

About sustainable investments and the EU regulatory framework

To increase the share of sustainable investments, promote long-term perspectives, and make it clearer what is actually sustainable and what is not, the EU has launched an action plan for sustainable finance.

The EU has committed to achieving climate neutrality by 2050, which entails a comprehensive transformation of European society and its economy – something that also affects us as a fund management company.

EU Regulation 2019/2088 (the Sustainable Finance Disclosure Regulation, SFDR) aims to strengthen consumer protection through enhanced sustainability-related disclosures.

This regulation places higher demands on us to be clear and transparent about our sustainability work, giving you as a consumer better opportunities to compare financial products and make informed investment decisions. The framework introduces specific disclosure requirements at both entity and product level, focusing on how sustainability risks are integrated into investment and advisory processes.

Here you can read more about our work on managing sustainability risks and how we consider principal adverse impacts on sustainability factors. Since all financial market participants within the EU are required to report similar information, it becomes easier for you as a customer to compare funds and companies. 

Sustainability risks

A sustainability risk is defined under SFDR as “an environmental, social or governance event or condition that, if it occurs, could cause an actual or potential material negative impact on the value of an investment.”

SFDR – Methodology description

We have developed definitions and methodologies to describe and assess the various trade-offs made within the framework of the requirements of EU Regulation 2019/2088, the Sustainable Finance Disclosure Regulation (SFDR).

Statement on principal adverse impacts of investment decisions on sustainability factors

Storebrand Asset Management, as a fund management company, is required to report on its work regarding so-called principal adverse impacts (PAI) in relation to various sustainability areas, known as the PAI statement. Principal adverse impacts refer to significant negative effects on different sustainability areas that our investments may have or do have.

Sustainability-related disclosures at fund level

In each fund’s prospectus and in the price list for each fund under the Documents tab, more sustainability-related information is available.

Our approach to sustainable investments – solutions, screenings & exclusione, and active ownership

Here you can read more about how we work.

Policys

Here you can read about how we practically carry out our work on responsible investments, as well as the principles for the fund management company’s remuneration system and how sustainability risks are taken into account within the remuneration system.

Classification, categories and reporting

Under SFDR, three main categories are applied for sustainability-related reporting. In practice, these are often used as a classification framework for funds based on their sustainability orientation. However, the classification should not be interpreted as a sustainability label; instead, it reflects the extent of the disclosure and transparency requirements that each fund management company fulfils for a specific fund.

Each fund management company independently defines its own methodology and criteria for determining which category a fund is assigned to. This may result in some limitations in the comparability between different funds and fund management companies. 

Article 9

Funds that have sustainable investments as their objective. Very extensive reporting requirements.

Article 8

Funds that invest in companies that promote environmental or social characteristics. Less reporting requirements than a fund defined as Article 9. 

Article 6

Funds that do not have a sustainability profile according to the regulations. Significantly lower reporting requirements than a fund defined as Article 8.

  • Article 9 funds, also referred to as dark green funds, are subject to extensive requirements regarding both reporting and investment strategy, as well as the types of companies that may be included in the portfolio. A fundamental requirement is that the fund has sustainable investments as its explicit objective. This may, for example, involve investing in companies whose products or services contribute to the UN Sustainable Development Goals or to reduced carbon emissions.

  • Article 8 funds, also referred to as light green funds, are subject to less stringent requirements than Article 9 funds and may therefore vary in their degree of sustainability integration. Article 8 funds promote environmental and/or social characteristics and may fully or partially invest in sustainable investments under the SFDR framework. The level of sustainability can therefore differ between different Article 8 funds.

  • Article 6 funds are funds without a sustainability profile as required for Article 8 and Article 9 funds, but where sustainability risks may nevertheless be taken into account in the investment management process. Through their ownership rights, the fund may also engage in active ownership and dialogue with companies, with the aim of supporting a more sustainable development.

    The disclosure requirements for Article 6 funds are significantly more limited compared to those for Article 8 and Article 9 funds. 

Historical returns are no guarantee for future returns. Future returns will depend, inter alia, on market developments, the fund manager’s skills, the fund’s risk profile and management fees. The return may become negative as a result of negative price developments. There is risk associated with investing in funds due to market movements, currency developments, interest rate levels, economic, sector and company-specific conditions. Returns may increase or decrease as a result of currency fluctuations. Prior to making a subscription, we encourage you to read the fund's prospectus and key investor information document which contain further details about the fund's characteristics and costs.