The sustainable investment objective of the Sub-Fund is that of investing 100% of its portfolio, net of cash, ancillary liquid assets and derivatives, in social or environmental sustainable investments by allocating capital in favour of companies that prove to have either a positive or improving social and environmental impact or alignment to Sustainable Development Goals (SDGs).
The Sub Fund pursues the objective of investing in sustainable investments contributing to climate change mitigation and climate change adaptation, as per Regulation (EU) 2020/852 (“EU Taxonomy”), by supporting the achievement of COP 21 Paris Agreement of limiting temperature rise to 1.5°C as compared to pre-industrial levels and the European Commission’s climate neutrality objective by 2050. The Management Company considers that a targeted minimum of 10% of the underlying investments selected for the Sub Fund’s portfolio, net of cash, ancillary liquid assets and derivatives, will be aligned with the first two objectives of the EU Taxonomy, climate change mitigation and climate change adaptation. The Sub-Fund does not commit to a minimum share of investments in transitional and enabling activities; however, these investments may form part of the portfolio.
Furthermore, the investment strategy also pursues the objective of contributing to reduce carbon emissions on a continuous basis by investing at least 20% of its net assets, net of cash, ancillary liquid assets and derivatives, in companies with a decarbonisation trajectory consistent with the achievement of Paris Agreement’s objectives and of climate neutrality by 2050. The financial product complies with the methodological requirements set out in Commission Delegated Regulation (EU) 2020/1818 for the calculation of the investment- and portfolio-level decarbonisation trajectory necessary to achieve Paris Agreements’ objectives and carbon neutrality by 2050. No EU Climate Transition Benchmark nor EU Paris-aligned Benchmark is available for the investment strategy of the Sub-Fund.
The Management Company has discretion to invest in companies with limited exposure to fossil fuels, but which are driving or significantly participating in the transition to a more sustainable economy.