The Sub-Fund has at least 80% of its exposure, net of cash and liquidity assets, to corporate and sovereign securities with an ESG rating equal to or higher than B. The Sub-Fund’s average ESG portfolio rating, net of cash and ancillary liquidity assets, needs to be at least equal to or higher than BBB. Equity exposure gained through derivatives is considered on a net basis for ESG rating attribution. Equity indices to which the Sub-Fund’s portfolio gains exposure through derivatives need to have an average ESG rating at least equal to or greater than BBB.
For the remaining proportion of direct and indirect investments in corporate and sovereign securities without an ESG rating, minimum social and environmental safeguards apply insofar as company-level sustainability data are available. Companies need to be compliant with the UNGC principles or OECD Guidelines for Multinational Enterprises and not involved in very severe controversies regarding environmental, social or governance issues or in aforementioned socially controversial activities. With respect to any sovereign exposure, the Sub-Fund will only invest in securities issued by countries with a high democratic level.
Only direct or indirect investments in companies, issuers and economic activities have been considered for the scope of the reporting and assets which do not directly or indirectly invest in companies, issuers and economic activities, such as cash, ancillary liquid assets, derivatives and sovereign securities, are not in scope of the reporting.