The attainment of the sustainable investment objective of the investment strategy is measured by the following sustainability indicators:
- Net impact ratio (NIR) indicator: Net Impact Ratio is a resource efficiency indicator that comprehensively captures investment’s impacts on society, knowledge, health, and the environment, considering both positive and adverse impacts. An investment with an improving net impact ratio indicator, thus, assures that adverse impacts are being reduced in relation to positive impacts, while an investment with a positive net impact ratio indicator assures that the scale of adverse impacts is insignificant compared to the scale of positive impacts. Net Impact Ratio data are provided by the specialized impact data provider The Upright Project.
- SDG performance indicator: the SDG performance indicator aggregates third-party data measuring product and operational contribution at company-level to the attainment of each SDG and is expressed as a percentage ranging from -100%, corresponding to a company that is exclusively contributing negatively to all SDGs, to +100%, corresponding to a company that is exclusively contributing positively to all SDGs. As for net impact ratio, the SDG performance indicator captures both positive and adverse impacts with respect to the attainment of SDGs. An investment with an improving SDG performance indicator thus assures that adverse impacts are being reduced in relation to positive impacts, while an investment with a positive SDG performance indicator assures that the scale of adverse impacts is insignificant compared to the scale of positive impacts thematically relevant for attaining SDGs. Disaggregated SDG contribution data are provided by at least one of the following impact data providers: The Upright Project, MSCI ESG Research, Physis Investment and Bloomberg.
- Health impact performance indicator: for a given investment to qualify as sustainable with a social objective, its health impact performance indicator needs to be positive. The health impact performance indicator, which is one of the impact dimensions of Upright’s Net Impact Framework, measures the real-world effects that a given investee company generates on human health directly, through its products and operations, or indirectly, through its suppliers’ operations or when its products are used by customers. The Upright’s methodology for attributing company-level health impact performance is available at the following link: https://www.uprightproject.com/downloads/model-whitepaper-v2.pdf. The health impact performance indicator is articulated in the following five health-related impact categories:
- Physical diseases
- Mental diseases
- Nutrition
- Relationships
- Meaning & Joy
Health impact performance data are provided by the specialized impact data provider The Upright Project.
- Employment impact performance indicators: given the impact theme of the investment strategy, the investment strategy monitors and takes into account into investment decision-making company-level performance with respect to equal managerial opportunities, job and career opportunities for young workers and job safety. If an investee company has a deteriorating performance on one or more of relevant employment impact performance indicators, the Management Company engages with the investee company, with the objective to help the investee company improve its employment impact over time.
- Taxonomy alignment indicator: 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. The degree of EU Taxonomy alignment of a given investment is measured according to the EU Regulations 2020/852 and 2022/1288. Actual and estimated Taxonomy alignment data are provided by at least one of the following sustainability data providers: The Upright Project, MSCI ESG Research, Physis Investment and Bloomberg. Owing to current limited availability of standardized EU Taxonomy alignment data, both actual and estimated data will be used to measure investment-level EU Taxonomy alignment. Estimated EU Taxonomy alignment can be subject to a certain degree of uncertainty, which is expected to decrease over time, mainly due to an evolving regulatory framework and limited corporate disclosure on EU Taxonomy alignment. EU Taxonomy alignment data are calculated on a revenue basis. Whenever available, actual EU Taxonomy data are preferred.
- Decarbonisation trajectory indicator: for an investment to qualify as sustainable with an environmental objective without being EU Taxonomy aligned, its decarbonisation trajectory needs to be consistent with limiting the temperature rise to 1.5°C as compared to pre-industrial levels and achieving the European Commission’s climate neutrality objective by 2050. The calculation of the investment-level decarbonisation trajectory indicator complies with the methodological requirements set out in Commission Delegated Regulation (EU) 2020/1818 for the calculation of the decarbonisation trajectory necessary to achieve Paris Agreement’s objectives and carbon neutrality by 2050. Decarbonisation trajectory data are provided by at least one of the following sustainability data providers: The Upright Project, MSCI ESG Research, Physis Investment and Bloomberg.