Each of the seven funds available on the German market convinced the FNG (Forum NachhaltigeGeldanlagen) auditors, who praised the “high level of product standards with internal ESG analysis and detailed reporting”, specifying that Triodos IM “performs exceptionally well” on institutional credibility with its eight consecutive and successful application.

Markus Klusemann from Triodos Bank Germany receives the FNG certificate

The following seven sustainable funds were awarded:  

  • Triodos Pioneer Impact Fund: 3 stars out of 3 
  • Triodos Euro Bond Impact Fund: 3 stars 
  • Triodos Global Equities Impact Fund: 3 stars 
  • Triodos Impact Mixed Fund – Defensive: 3 stars 
  • Triodos Impact Mixed Fund – Neutral: 3 stars 
  • Triodos Impact Mixed Fund Offensive: 3 stars 
  • Triodos Future Generations Fund: 2 stars
William de Vries

From the already restrictive list of less than 300 FNG-labelled funds, about 34% have managed to obtain the highest three-star rating, 6% of which are Triodos IM funds. Launched in April 2022, Triodos Future Generations Fund managed to obtain 2 stars out of the maximum score of 3, despite the fact thatthe fund could not yet present a track record on voting and engagement over the analysed period of 2021.  

“We are proud that, once again, the rigorous and well-respected FNG label was awarded to all the Triodos IM funds that applied for it. It is also a fantastic achievement for the recently-launched  Triodos Future Generations Fund, which will aim for the full three stars next time with a proven track record,says William de Vries, Director Impact Equities and Bonds. 

Why is this label important? 

Investors want and deserve to know how they can be sure whether a fund is truly sustainable. By introducing the Sustainable Finance Disclosure Regulation (SFDR), the European Commission has made an important step in that direction, as investors now know for each fund whether it is classified as SFDR article 6 (does not integrate any kind of sustainability into the investment process), SFDR article 8 (promotes, among other characteristics, environmental or social characteristics) or SFDR article 9 (targeting sustainable investments). However, it must be known that these disclosures are not an indicator of the content and quality of the sustainable investment packaged in it. 

The FNG label on the other hand, ensures quality-oriented certification based on clearly defined, transparent criteria. In other words, it gives investors the external, independent confirmation that the Triodos IM Impact Equities and Bond funds are truly sustainable. 

What makes the FNG label relevant? 

The FNG label is the leading quality standard for sustainable investment funds in the German speaking market. The holistic methodology of the FNG label, based on rigorous audit sparring, includes transparency criteria, recognition of labour and human rights, protection of the environment and the fight against corruption as summarised in the globally acknowledged UN Global Compact. Additionally, all companies included in the funds have to be explicitly analysed with regards to sustainability criteria. Investments in nuclear power, coal mining, significant coal-fired power generation, fracking, oilsands as well as weapons and arms are out of bounds.  

The FNG label goes well beyond a portfolio approach and is holistically meaningful. More information about the FNG label can be found at www.fng-siegel.org.