Eurizon’s sustainability policy
3 minutes Consistently with European law (Regulation EU 2019/2088, so-called Sustainable Finance Disclosure Regulation), Eurizon has adopted a Sustainability policy that illustrates how sustainability risks are integrated in the investment decision process, defining specific methodologies to select and monitor financial instruments, that take into account sustainable and responsible investment (SRI) principles, and environmental, social, and governance (ESG) factors.
The ESG/ SRI strategies adopted by Eurizon
Application of limitations to the issuers more exposed to sustainability risks in function of the potential adverse effects on sustainability tied to (a) the issuer’s business sector, such as fossil fuels (PAI 4) and controversial weapons (PAI 14), and/or (b) the company’s conduct in terms of adverse effects on the environment and on society, taking into account the greenhouse gas intensity of the companies invested in (PAI 3), the share of non-renewable energy consumption and production (PAI 5), and the intensity of energy consumption per high-climate-impact sector (PAI 6), as well as the violation of UNGC and OECD guidelines (PAI 10) and in the presence of any further environmental, social, and/or corporate governance issues.
Identification of the countries more exposed to sustainability risks following an analysis of greenhouse gas intensity, referred to scopes 1, 2, and 3 (PAI 15), or black-listed by the Financial Action Task Force (FATF) due to shortcomings in fighting money laundering, the financing of terrorism, and the proliferation of weapons of mass destruction.
Relates to strategies that integrate ESG factors in the analysis, selection, and composition of the assets under management.
Pursuit of sustainable investment goals using the sustainable investment methodologies laid out by the AM company.
Investment in companies with solid managements and with no issues in terms of relations with personnel, pay disputes, and the respect of tax obligations.
This translates into proactive interaction with issuer companies through the exercise of speaking and voting rights, and engagement, encouraging effective communication with the pertinent corporate bodies and/or the top management and their representatives.
This version of the policy, effective from October 30 2024, will be applicable progressively according to the dates of updating of the offering documents of individual managed assets
The main players involved in the ESG/SRI process
ESG Committee
Draws up the proposals to present to the BoD on sustainability themes, monitors the exposures of assets under management with respect to ESG indicators, and oversees engagement on external corporate governance activities
Sustainability Committee
Works with the BoD to guarantee that Ethical Fund investment decisions are in line with the rules for these funds. The Committee is independent and autonomous from the AM Company and is made up of personalities of acknowledged probity and morality
Devolutions Committee
Supervises the donations and charity activities of the funds that belong, among others, to the Ethical system as well
Investment Supervision Committee
Tasked with advisory, drafting, and propositional activities related to the supervision of the Investment Process used in managing funds
Financial, Credit and Operational Risk Committee
Monitors the impacts of sustainability risks on financial products, and the mitigating actions adopted to face the adverse effects tied to investment decisions
Eurizon investment process integrating ESG factors
