As per 10 March, the EU Sustainable Finance Disclosure Regulation (SFDR) has come into force. This regulation stems from the Sustainable Finance Action Plan (SFAP), which aims to stimulate sustainable investments in the EU in order to help achieve the climate goals of the Paris Agreement and the European Green Deal. The EU SFDR is applicable to financial market participants ranging from asset managers to financial advisors and aims to increase transparency in how sustainability risks and opportunities are integrated into the investment decisions.
Triodos Investment Management (Triodos IM) connects a broad range of investors who want to make their money work for lasting, positive change with innovative entrepreneurs and sustainable businesses doing just that. In doing so, we serve as a catalyst in sectors that are key in the transition to a world that is fairer, more sustainable and humane. This is something which we have been doing for over 25 years, long before the rise in sustainable investing, and is in the core of our business. The sustainable investment sector has grown exponentially in recent years, and while we very much welcome the growth, too many products are aligned to a marketing hype rather than an authentic impact investment strategy. As such, we welcome SFDR in order to increase transparency in the sector.
All Triodos IM funds available for investors have sustainable investments as their objective as set out in article 9 of SFDR. Article 9 investment products are products that focus specifically on achieving a sustainability goal. Sustainability is a binding and mandatory part of the investment process for these products. To make money work for positive change, we assess our investments through two sustainability impact lenses:
- Inside-out: the impact of our organisation and investments on the sustainability factors in the outside world, resulting in positive and/or negative impact;
- Outside-in: the impact of sustainability factors in the outside world on our organisation and investments, resulting in sustainability risks.
More SFDR related information and updated prospectuses in light of the new regulations are available on the website of Triodos IM.
For fund-specific SFDR disclosures, please visit the sustainability section of our fund pages.