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. The Management Company considers that a targeted minimum of 5% of the underlying investments selected for the Sub Fund’s portfolio will be aligned with the first two objectives of the EU Taxonomy, climate change mitigation and climate change adaptation.
The Sub-Fund’s proportion of investments with a positive taxonomy alignment to climate change mitigation and climate change adaptation will take into account Principal Adverse Impact (PAI) indicators.
In the investment process of the Sub-Fund, the following Principal adverse impact (PAI) indicators are considered at the investment level:
- GHG emissions (1) – trajectory improvement
- GHG intensity of investee companies (3) – trajectory improvement
- Violations of UN Global Compact principles and OECD Guidelines for Multinational Enterprises (10) – exclusion from investible universe
- Lack of processes and compliance mechanisms to monitor compliance with UN Global Compact principles and OECD Guidelines for Multinational Enterprises (11) – exclusion from investible universe
- Exposure to controversial weapons (14) – exclusion from the investible universe
- GHG intensity of investee countries (15) – trajectory improvement
- Average rule of law score (24) – Table 3 – exclusion from the investible universe
If an investee company gets involved in violations of UN Global Compact principles and OECD Guidelines for Multinational Enterprises or in very severe controversies regarding environmental, social or governance issues, it loses its sustainable investment qualification, in that such involvements are deemed inconsistent with the respect of the SFDR DNSH principle. As a result, the Sub-Fund will divest from such an investee company in a way consistent with protecting investors’ best interests.